Outlook.com Mail Folder Actions

I have a small business that currently is using Google to host our email.  We are think of switching to Outlook.com since we can also have Microsoft Office applications.  I am wondering how Outlook.com treats its mail folders that a user creates in their mail account.  Google stores everything in all mail.  As such, a user can have the same email displayed in two different folders without creating duplicates.  In addition, if a folder is deleted the email still remains in the all mail mailbox.  Does anyone know if Outlook.com works the same way or are the actual messages being moved?  In addition has  anyone made such a transition?