Thank you so much. Its so reassuring. Pythonanywhere doesn't allow code to connect to outside url in the case of free account. I tested it in a paid account and web2py was able to connect to zoho smtp mail. I have shown web2py to my friends and some couldn't believe it was that easy to build a web application. Overall its amazing. My best regards to everyone working on this and especially Massimo Di Pierro, you are a good teacher. I will definitely acknowledge and give credit to web2py on the finished website and will contribute back to community.
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