Microsoft to Sell Outlook Subscription Service 360
An anonymous contributor writes "Boston.com is reporting that Microsoft will begin selling Outlook as a subscription service to compete with add-on services provided by Yahoo and Google. 'The new service, which costs $59.95 per year, will let people organize e-mail, contact lists and calendars in their online Hotmail accounts using the Microsoft Outlook program most often found on businesses' desktop computers.' I can't see many users paying for this service. Most Hotmail users use it because it is free, or they don't know about the alternatives. Paying for access via Outlook doesn't seem to fit with that market segment."
TFA Article Says (Score:5, Insightful)
Microsoft is smart to take advantage of a popular core product -- Outlook -- to help make Hotmail more attractive to sophisticated users.
They're not targeting fungrl149@hotmail.com here. They're targeting the exact segment of the market that Gmail appeals to now. Gmail took free web mail and turned it into a legitimate and attractive service. MS would now like to up the ante a bit and charge a little (and the dude said the price was 'steep', so it'll probably come down before launch) and provide more feature richness for that money. It's just another step towards the increasing legitimacy and acceptance of online services either replacing or merging with traditional desktop applications. I'm no fan of MS, but their participation in the advancement of web based email services or other apps is part and parcel of the general move forward.
Re:TFA Article Says (Score:2)
Is Gmail a pay service? Is it even out of beta?
Re:TFA Article Says (Score:3, Interesting)
The one big thing GMail has (aside from labels, nice interface, etc.) is the notifier. The main reaso
Re:TFA Article Says (Score:2)
Let's not go crazy. Once the hype died down, Gmail pretty much became just another Webmail service with an interesting interface and a lot of storage. It's really not as hot as the hype would suggest and had it been from anyone but Google, no one would have really cared. eBay's littered with latecomers trying to cash in their invites, but it looks like they're down to asking for a couple of dimes now.
To say that Gmail's second-place to an iPod i
Re:TFA Article Says (Score:3, Insightful)
Really? Which culture?
Re:TFA Article Says (Score:3, Insightful)
Re:TFA Article Says (Score:3, Funny)
Microsoft's Web site sells Outlook as a stand-alone product for $109. This is the first time Microsoft has offered any of its Office products on a subscription basis.
Trully innovative that company is. I mean this new "vision" they have is, like, so 70's.
Re:TFA Article Says (Score:2)
Do not underestimate the power of the Dark Side...
Re:TFA Article Says (Score:3, Interesting)
I do not think, however, that something along the lines of a desktop application (word processor, spreadsheet, CAD application, programming suite) works with the subscription model (that's why the largest enterprise apps typically sport "service contracts" - as far as I know most will allow you to continue to use a fo
Re:TFA Article Says (Score:2)
It's not clear to me from the linked article, but it does look like they are including the client Outlook application in the subscription model. But what I really think they should be doing is giving home users (or the target Hotmail market) the benefits(*) that corporate users get of the backend Exchange server.
Re:TFA Article Says (Score:4, Insightful)
hahahahahahahahhahahahahahaha.
hahahahahahahahahahahahahahah, geeeez did you really say that?
if you want an invite, there are loads around [gmail.com] free POP, and lots of space.
Microsoft playing catch up on search and email and IM == part of the way forward? well I hope so.
It's just another step towards the increasing legitimacy and acceptance of online services either replacing or merging with traditional desktop applications.
You wouldn't happen to be a low paid middle manager? how did I know? nothing....
Re:attractive service? (Score:3, Insightful)
Re:attractive service? (Score:5, Insightful)
No it's not, the replacement of static folders with more flexible labels does not change the basic model of email. There's no doubting it's a cool feature, but it's very much evolutionary rather than revolutionary.
The only paradigm that's been shifted by GMail is that marketeers now have direct access to their potential customers' emails and so have an unprecedented window in to the mind of their market.
Re:attractive service? (Score:2, Funny)
You actually used the word "Paradigm"? Let me guess, you are a Change Management Consultant.
Re:attractive service? (Score:5, Funny)
Re:attractive service? (Score:2)
Re:attractive service? (Score:2)
And if you really don't like paying for things, there's an ad-supported version -- it even uses Google Adsense for targeted advertising!
Also offering Outlook Express - they'll pay you! (Score:5, Funny)
Steve Ballmer initially acknowledged FlyByNight's efforts, stating, "We haven't been able to give it away - we bundled it with Windows, and people go out of their way to uninstall Outlook Express. We applaud FlyByNight's new distribution methods."
Great.... (Score:2, Funny)
One exception? (Score:2, Interesting)
Re:One exception? (Score:5, Insightful)
Re:One exception? (Score:2)
There are SMEs in other areas, particularly in Asia and Eastern Europe that cannot afford to have their own mail server. However, you're right - they would rather sign up for their own domain and have a mailserver there, than use Hotmail or Yahoo.
Re:One exception? (Score:3, Insightful)
The beneits? Someone else takes care of the hardware, software licenses (if applicable), disk, backups, maintenance, and 24x7 availability. For a small company with no IT staff, this is great -- someone else manages the web
Re:One exception? (Score:2)
Re:One exception? (Score:3, Insightful)
Re:One exception? (Score:2)
Re:One exception? (Score:3, Interesting)
Do you have requirements to retain emails for a period of time?
Do you have requirements to ensure backups of mailboxes? I haven't read my Hotmail information lately, but I seem to recall that they don't necessarily offer recovery should their services go down.
Does using a free webmail solution create a positive impression to your business clients?
Like my original post indicated, I haven't worked for a very small IT company to necessarily understand
Re:One exception? (Score:2)
You can get a 1GB hosted server and domain name for $65/year, with SpamAssassin and a variety of webmail applications preinstalled. Then you can use IMAP or POP3 from any email client on any OS. And you get a professional domain name, all with as much knowledge as you need to set up Outlook.
So unless MS is charging less than $5.50 per month for this service, I don't see how it's going to make a profit.
Hmmmm (Score:3, Interesting)
I think they're renting the Outlook software itself. I have Outlook and can access my hotmail through it currently. That's been a feature for a while.
What they're offering here is a cost-effective model to acquire Outlook to use with Hotmail...
Re:Hmmmm (Score:2)
Guess what's going away, then, hmm? They've been testing this in the wild for a number of months now. a couple of months back, I got an error message in Outlook identifying Hotmail download as a premium subscription service; the message lasted a coupla days, and then it went away. (I'm a M$ beta tester! woot!)
Re:Hmmmm (Score:2)
You know I'm not too excited to hear that they might want to charge me for a feature that up till now was free.
I sincerely hope that's noe the case...
Of course I unlinked hotmail with Outlook long ago after the gee-whiz factor wore off, so I guess its no skin off my back
Re:Time to change (Score:2)
The yahoo and hotmail accounts are pretty much just for mailing lists these days.
Free email (Score:2)
Most users have unruly amounts of spam. Hotmail, IMO, is the worst for spam.
This makes no sense - who's gonna go for it? (Score:2)
Re:This makes no sense - who's gonna go for it? (Score:2)
Outlook != Outlook Express
They also offer cafeteria pricing (Score:3, Funny)
That's the Way (Score:3, Funny)
Re:That's the Way (Score:2)
To my knowledge, Outlook (full version) has never been free. IE is still free, as is Outlook Express. $59.99 per year is barely different than buying every new version when it comes out.
Wow. (Score:2, Interesting)
Yeah, hotmail is for l00zers (Score:2)
I have a hotmail account as my permanent email address since 1996? maybe 1995? It was around the time that usa.com was starting to offer free lifetime email addresses. I looked at the idea, and chose a company (MS) that isn't going anywhere. I change ISPs, I change employers, but until MS goes out of business, I have one email address that isn't going away.
Yes, I've got gmail, and I've got yahoo. Heck, I've even
Re:Yeah, hotmail is for l00zers (Score:2)
So, do you get much spam? This is a genuine question.
Re:Yeah, hotmail is for l00zers (Score:2)
Sounds familiar (Score:3, Interesting)
Sounds like .Mac [mac.com].
Which is to say, not as crazy as it seems on the surface. If people really like the MS application, and like being able to access it anywhere, they're liable to pay.
Big if, though.
Re:Sounds familiar (Score:3, Informative)
Re:Sounds familiar (Score:2)
The tools to set up WebDAV and iPhoto-to-Gallery publishing: Free
Having the ability to switch my service at any time and still keep my email address: Priceless.
Re:Sounds familiar (Score:2)
hmm (Score:2)
Hotmail respect (Score:5, Funny)
People see surfrdood344@hotmail.com on my resume and say, "this guy means business"...
being able to have easier access to my hotmail account? priceless...
You can have a hotmail account in your own domain (Score:2)
Re:Hotmail respect (Score:2)
and I've also talked to people who say its actually really good to have something that really stands out on your resume... which is why I point out
Application Service Over The Web (Score:2)
As well, given the cost of Outlook, a fee that included annual
First they take it away (Score:2, Informative)
OE used to have the ability to use Hotmail as one of it's providers (not sure if it still does but looking at this announcement I doubt it). It was basically an IMAP connection to Hotmail. I have used this in the past and it worked well, Now they are goign to relaunch it with a price of ~$60 per year? Don't know where I am going with this comment. It was probably the best way to use hotmail, but is it worth charging for? Well either way I'm cheap and won't be paying any
Re:First they take it away (Score:3, Informative)
I don't think it is IMAP (Score:2, Informative)
in other news... (Score:2, Funny)
Diane: right you are, Tom. i know several have "jumped on the Bandwagon", already.
Tom: nice contribution, Diane.
Diane: and you're a piece of trash, Tom.
Open Opportunity (Score:3, Insightful)
The key obstacle, as usual, is MS-proprietary data formats and protocols. The MS-Ex sync protocol is available for licensing. And PIM data uses standard vCal and VCard data, though there are MS-proprietary formats, too. Our Open community can pull this off with many people each doing our small part to reengineer those formats, and get Evolution/Open-Xchange to seamlessly import the native MS formats. MS is blinking - let's hit 'em between the eyes!
Were seeing Phase One .... (Score:5, Insightful)
When I first read this article I saw this as a really stupid decision by Microsoft. It didn't seem to make any business sense at all. Then I saw it for what it really is. It's phase one in Microsoft's overall strategy to turn Office into a subscription service.
Little by little, piece by piece, you'll see various Office applications offered as a service, with the ultimate goal of making users pay the Microsoft tax once a year.
Gates isn't an idiot. He's seeing the ever increasing upgrade cycle. Let's face the facts, Office 2003 offers very few new useful features to your typical Office user than was there in Office 2000. Some would argue that all the way back to Office 98. He would love to get users into a subscription model. If you don't pay the yearly tax, your cut off, just like that.
Re:Were seeing Phase One .... (Score:2, Insightful)
OSS is driving this in a big way. If the software is gratis/free, then how do you profit? You sell the services you need to make it work, and support. IBM wants to dominate the IT services industry.
This is what businesses like, frankly, something that's a constant line item in the balance sheet, rather than having to spend X-zillion dollars at irregular intervals to roll out a new version
Exactly. (Score:3, Insightful)
Yup. It used to be that you had to innovate if you wanted customers to trade in the old one and buy a new one. But that's too much work. I'm su
I mean free open source. (Score:2)
Re:Were seeing Phase One .... (Score:3, Insightful)
And that's why he's not exactly inclined to allow for a fully open format. No one will pay the price when they don't have to use MSFT's softwa
I think the plan may be larger. (Score:2)
Exchange (Score:2)
This service doesn't just give Microsoft a new revenue stream (which they're not exactly desperate for in any case) it gives people a chance to try out Exchange features without the investment of an Exchange infrastructure. Which would,
Thunderbird is an option (Score:2)
You can 'subscribe' to Thunderbird [mozilla.org] too.
IMHO that's a better option. Cheaper, better software.
This will be a new trend with Microsoft (Score:2)
I can't wait for the day when we as consumers can no longer buy things, we must rent them- and be bound to their EULA's.
What a great way to harvest citizens. "They aren't free thinking individuals- they're a cash crop, owned by corporations!"
It works like this (Score:2)
This used to be free (Score:2)
I would guess that MS isn't interested in... (Score:2)
If you have an ISP... (Score:3, Interesting)
I have comcast and the email seems to work fine...I can access it via thunderbird or the web...
however friends with hotmail/yahoo/whatever often suffer delays when sending/receiving messages, etc. I can see if you don't want to change an email address for a business, but otherwise I don't see the point now that POP3 access is a "premium" feature.
and why in the world would anyone pay $60 a year for a crippled version of outlook of all things? If you are using webmail in the first place I doubt you really need something with all of the functionality of outlook.
I am sure this has been pointed out (Score:2)
Marketing 101, do not target development at your market niche try to fit into new spaces.
Lock In Attempt (Score:5, Insightful)
This gives Microsoft an excellent lock-in strategy, further down the road -- not only would you have to change email addresses to change clients, you would have to rebuild your contact database, transfer your calendar items, etc.
The only part that I find surprising, here, is that Microsoft would bother charging for the service. Why not make it free, then turn it to a pay service when they have properly locked up your data in their servers?
Re:Lock In Attempt (Score:2)
However this would probably result in the EULA going to court, and being tossed out, and Microsoft would have to start from scratch..
Re:Lock In Attempt (Score:3, Insightful)
What color is the sky in your world? MS Exchange is growing in popularity and has no serious competition. Notes and Groupwise have been trying to steal marketshare but have not been making serious sucess. Certai
Old News (Score:2, Informative)
I'm sure a few will (Score:2)
There are too many ignorant people out there (Score:2, Interesting)
Friends of my wife and I had a bunch of spyware on their PC. I cleaned up there system and then put Firefox on there. I said, "Use this instead. It's just as easy as IE, but you won't get as much malware on your system."
They said, "Ok!"
The next day I came by and somehow they figured out a way to get the IE icon back on
Re:There are too many ignorant people out there (Score:2)
The next day I came by and somehow they figured out a way to get the IE icon back on their desktop and set up as the default browser. I was floored.
They probably ran into some ActiveX site, such as Cartoon Network's Kids Next Door: Operation BEST, that by its nature does not work in any official Mozilla.org product. Next time, try a subtle hint: add a registry key [microsoft.com] that sets IE's title to "Microsoft Spyware Installer".
Re:There are too many ignorant people out there (Score:2)
here is another subtle hint: users won't allow you to shut off access to the content they want, security be damned. you don't get that kind of power outside of the workplace.
Hotmail (Score:2)
Back in the day it was revolutionary and a good product, much like Gmail is now. In 10 years time it could well be Gmail that is the lumbering crap filled old beast.
Hosted service model... (Score:3, Insightful)
This also allows MS not to worry about license revenue and allows them to control the spitgot. If you can turn a service off or on then you put a serious clamp on the pirating of your software.
The company I work for is in the final stages of turning off the licensed customers. The code line is deadended and will be eliminated in the future years. The only way to get our service will be to pay a user fee for out hosted web service.
This is great for the company because we now control updates, releases, etc. and don't need the customers permission. We turn on access for new users and when the users get to a certain number we add a few more machines to the server farm. We use the same open source applications to provide the web servers and leverage the databases to handle many clients on the single license.
Over time we have seen the 'cost per transaction' reduce and the 'cost per deployment' reduce but we still charge the same amount. This increases the margins and thereby increases our profitability.
MS would love to get to the same place.
This has the potential to be really big (Score:2, Interesting)
Exchange server is pretty expensive to set up and maintain for the average small business, but integrated, shared calendaring/scheduling/contacts/etc. in the familiar Outlook interface is a nice feature for most businesses with more than a few employees.
The roadwarrior aspect is quite nice too. If the off
Alternatives? (Score:2)
, or they don't know about the alternatives
Alternatives? What alternatives?
The only other alternative I've ever seen on my desktop was this AOL link, and they charge something list $24.95 a month!
It's funny, laugh
Too expensive (Score:3, Informative)
And Slashmail [slashmail.org]'s offering is better than Microsoft's Outlook Live in many ways:
This makes sense...Microsoft has a plan. (Score:2)
Ballmer and co. have stated many a time that software-as-a-service is their ultimate objective. Tiny steps in that direction eventually will get them there.
Hopefully, everyone will be using Mac minis by then and Outlook will be a thing of the past. And I can drive my flying car to Venus for the weekend! w00t!
Home users? (Score:2)
For business, they may be able to justify spending incremental subscription costs for software: it may make financial sense for them to do so.
But the home user? This is a person that has never had to be subjected to using software that demands a monthly bill to be paid like your telephone, utilities, and cable. I would guess that the vast majority of MS Office (therefore, Outlook) users in home environments either pirated their
I disagree on why people use Hotmail (Score:2)
I can't see many users paying for this service. Most Hotmail users use it because it is free, or they don't know about the alternatives.
I know a lot of people who use Hotmail and Yahoo services simply for the convenience of having one email address. People hate switching email addresses every time they switch ISP's.
I think there is a market... (Score:2)
MS are simply trying to make up for having a crappy, non-networked platform and trying to rip off their users at the sa
for a few dollars more (Score:2)
Re:Err... (Score:3, Insightful)
Re:Err... (Score:2)
Re:Err... (Score:2)
Re:Err... (Score:3, Informative)
Re:Err... (Score:2)
iCal is an option but doesn't provide any of the robust features (again, busy search) that a full-blown Exchange server affords. Not to mention that using iCal with Outlook is not exactly seamless.
Don't get me wrong, I'm not a big fan of Outlook/Exchange, but I can imagine there are many small businesses that would love the functionality without the
Re:Err... (Score:2)
Re:Hotmail on OE (Score:2)
Re:GIMAP (Score:2)
And don't forget Yahoo! Mail (Score:2)
So what's the big fuzz?
Re:Pay to use?! (Score:5, Funny)
Gmail Invites? Surely, you can't be serious. Next thing you know, somebody will offer us Free iPods!
Re:Sherman Antitrust Act (Score:2)
Warning: IANAL.
There are a few points to be cleared up here. First is that tying (definitely illegal under the Sherman Anti-Trust act) and bunding (selling two products together) are NOT synonymous.
Tying occurs when a company with significant market power (a monopolist) packages its monopolized product with one of its other products AND customers must also buy the other product to get the monopolized product.
No
Office is often bundled with Windows (Score:2)
You claim that Outlook is not in fact bundled with a monopoly OS. Tell that to anybody who has tried to purchase a PC from Dell and other OEMs that include a copy of Microsoft Office with each Windows XP Pro-preloaded PC they sell, AFAIK offering no opportunity to substitute Lotus SmartSuite, WordPerfect Office, StarOffice, or any other suite. (Dell loads Windows XP Home PCs with Microsoft Works Suite, which includes Microsoft Word.)