MSN has launched a new service that gives consumers the same benefits as its existing Hotmail Plus service, but also includes a subscription to use the most current version of the Outlook e-mail client, thereby eliminating the need for the user to purchase the more expensive perpetual license. The new US$60-per-year offering, called Microsoft Office Outlook Live, lets users download and use Outlook 2003 for Subscription Services, which includes the MSN Outlook Connector that synchronizes Outlook with the user’s account on a Hotmail e-mail server whenever connected to the Internet. However, the US$40 per year additional cost will be hard to justify over just buying the Outlook software.

Comparison with MSN Hotmail Plus

Outlook Live users and Hotmail Plus users who own a copy of Outlook 2003 can both do the following:

• Use Outlook (with the MSN Outlook Connector) as their Hotmail client, allowing them to work offline and take advantage of Outlook’s much more sophisticated interface and features, such as antispam filtering on message content and synchronization with Windows Mobile Devices using ActiveSync
• Store up to 2GB on Hotmail servers
• Send and receive file attachments as large as 20MB
• Permit other Hotmail users to view their calendar information
• Access mail and calendar data using Hotmail’s Web interface when they don’t have access to their Outlook clients.

The difference between Outlook Live and Hotmail Plus boils down to cost. This is the first time an Office product has been available to the general public on a subscription basis other than limited trials for Office subscriptions in some (non-U.S.) subsidiaries. However, based on current pricing, it appears unlikely that the service will attract many takers. Since the MSN Hotmail Plus service costs US$20 per year, the US$40 difference is fairly steep considering that a full perpetually licensed retail copy of Outlook 2003 is available for US$80 to US$100, and many consumers qualify for a US$150 copy of Office 2003 Student and Teacher Edition, which also includes Outlook 2003. With the next release of Outlook not expected until late 2006, even users who would normally upgrade quickly when the next release shipped will realize little or no savings from subscribing rather than buying.

Microsoft is offering the first year of Office Outlook Live at a US$15 discount until April 16, 2005, which might induce some consumers to give it a try.

Because licensed Exchange users automatically have rights to use Outlook 2003, Hotmail Plus is obviously a better choice for business users who also want to have personal Hotmail accounts.

Resources

More information on Outlook Live can be found at outlooklive.msn.com.

Microsoft’s earlier forays into subscription licensing are detailed in "Subscription Licensing Tested" on page 16 of the July 2001 Update.

Background on Hotmail Plus and a comparison with Gmail and other services can be found in "Hotmail Strikes Back" on page 20 of the Aug. 2004 Update.