Switching Hotmail to Outlook, Microsoft faces many risks



Recently, Microsoft – the biggest software company in the world, began to shift accounts from Hotmail email service to Outlook.com address, hoping to create the footprint and close the gap with Google. However, some experts said that this measure might contain a lot of risks.

Microsoft intends to finish the transition period from now to this summer. This process will not compact to the users because they probably keep contacts even their current address. Microsoft said that since October of last year, 60 million people have chosen Outlook.com, its free e-mail service with many features that allows to connect with the social networks accounts of users and set up video chat through Skype.

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Hotmail changing name is one of the part in the innovation process of Microsoft. It was carried out when the company has changed the products known as Windows and Office. The Messenger service will be replaced by an online voice service – Internet Skype which has taken over by “software giant” since 2011.

Related to this race with Google, analysts Matt Cain of Gartner’s Office has launched the concept of “authorization war” in the bussiness sector. According to him, the popularity of Gmail for users has supported Google in the enterprises because the employees require employers to use Gmail, the service they’re used in personal communication. Meanwhile, Microsoft has a solid foundation as Hotmail, but they did not profit from the business sector. With the new name – Outlook and the softwares installed in the office computers that appear in all interprises, Microsoft is trying to create the “highlight profits” from business sector like Gmail.

Hotmail used to be the most popular email service in the world, but it has recently dethroned by Gmail. According to Comscore’s Office, as of January 2013, Hotmail has a total of 257.6 million users while Gmail has 309.2 million users and Yahoo Mail with 297.9 million users. Thus within one year, the users of Microsoft’s email service dropped 20%, Gmail dropped 18% and Yahoo Mail droped slightly with 1%.

With daring innovation plans of Microsoft, there are many different opinions from experts. Trip Chowdhry, an analyst of Global Equities Research Company, said that Microsoft was wasting money on advertising while they need to improve their products, and making users confused when dismissing a strong brand as Hotmail.

Meanwhile, technology experts Jeff Kargan said that although switching Hotmail into Outlook is a “full of risks” work but also opens up the prospect “if they implement that plan well.” Mr. Cool Ken also appreciated “the right decision” of Microsoft. According to him, the familiarity of Hotmail does not entirely have positive meaning because Hotmail is recognized as “a antique” that only used by parents.

 

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