Are there emails stored in iPhone with Outlook 365?

My company recently moved to Office 365 and as a result i had to re-set my iphone in order to download mails. Before we had Exchange 2003 and i had set the 'Mail days to Sync' to 30 days which was the maximum despite the fact that i didnt like it because i couldnt browse older than 30 days old messages.
Now with the new setting i see that the 365 settings (set as exchange) there is a 'no limit' option which i selected but i noticed that my freespace capacity in my iphone dropped a lot. Does it mean that emails are downloaded and saved in my device?
Why such options do not exist on Gmail and Google Apps? Is there some difference between the 365/Exchange method of delivery mails and GMail/Google Apps??

giorgosiphone wrote:
Does it mean that emails are downloaded and saved in my device?
Yes
Is there some difference between the 365/Exchange method of delivery mails and GMail/Google Apps??
Yes..one is Exchange based, the other is not.

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    4. Create a new Profile with the other email account, try start Outlook, and check the launch speed;
    Since the issue is related to Exchange online, I recommend you ask for help on our Exchange online forum:
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