Microsoft plans to overhaul Hotmail and launch the web-based email platform Outlook.com (currently in indefinite beta) in its place. With a look that is consistent with Office 8 and Windows Phone, a set of social features, and Skype integration pending, the beta has proved popular. 1m+people signed up within the first 24-hours.
This is Microsoft’s latest challenge to Google. It is not simply looking to compete on a product-by-product basis, its goal is to reclaim the user interface – across desktop and mobile devices. Using Outlook.com users will be able to integrate, and synchronise (to varying degrees), with applications like Outlook and Office Web Apps, as well as access multiple social media feeds, all from one place. With the number of social feeds expanding, management is becoming an issue so a central point of access is a smart move, particularly when combined with access to more standard applications. Supporting third party feeds as well as vendors’ own preferred feeds will be important for credibility in this area.
Outlook.com is also positioned to act as a bridge between consumer and business environments, with Microsoft hoping that adoption in the consumer space will lead to business gains. Although Office is still flying out of the door, Windows sales are suffering (see More on Microsoft’s loss making Q4). As we have said for some time now, on-going success in the business market relies on success in the consumer market. Google is a leader in the consumer space and encroaching into Microsoft’s business space. Outlook.com is a defensive consumer-market move but it is hard to see it slowing down the Google march.