Hotmail was launched in 1996 and was one of the first online email services, however Microsoft has not updated it for past eight years. This is surprising because as per comScore figures available, it had 324 million users, or about 36 percent of the global market. However due to its lackadaisical attitude it is losing customers to Google's Gmail and as anet result its market share has fallen to 31 percent of the market whereas Yahoo Mail share remains flat at 32 percent.
Microsoft is now applying a new strategy to regain its lost share and it is renaming the service as Outlook as this name is known in corporate world and they will spruce up the whole experience. Hotmail users will be prompted to switch over to the new service over the next few months.
Users can link up with their Facebook (FB.O), Twitter, LinkedIn (LNKD.N) and Google+ accounts, to see the latest updates from friends and contacts. Online chat is available via Facebook. The new mail service also allows easy use of Microsoft's Internet-based products, such as SkyDrive for storing documents, Office Web Apps for working away from a PC and will eventually have Skype video chat built in.
Only time will tell that whether it was a good bet or a failed venture due to non being in sync with time.