Hotmail Relaunched

Windows Live Hotmail, the most significant update to Microsoft’s Web-based e-mail service since the company acquired it in 1998, boasts a redesigned interface, more e-mail storage, and free connectivity from Microsoft’s Outlook 2003 or 2007 e-mail clients. The improved service, in beta testing for nearly two years, was necessary to keep Hotmail competitive with Yahoo Mail and Google’s Gmail service. Although Hotmail itself probably contributes little advertising revenue, its 280 million users may be drawn to more lucrative Microsoft online services, such as MSN content sites and Live Search.

New Online Features

Windows Live Hotmail (at one point called Windows Live Mail) began beta testing in July 2005. The redesign came in response to Google’s Apr. 2004 launch of Gmail, which offered 1GB of storage (the standard for free services at the time was 4MB or less) and threaded conversations. Yahoo Mail also began testing a major redesign in June 2005.

In May 2007, Windows Live Hotmail finally exited beta testing. It includes the following improvements, most of which were available during the beta test: