There are many times we are asked about Windows Explorer functionality in SharePoint. Users of Office 365 are often using the SharePoint Document Library within Office 365 to replace the servers they were using for years. When they used their servers, they enjoyed the ability of keeping documents in nested files with multi-level hierarchies.
http://thewebandi.com/2012/05/09/opening-a-office-365-sharepoint-library-with-windows-explorer/
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