Hotmail becomes Outlook: we enter the dour world of corporate email

Is the rest of the internet catching up with Google?

Yesterday saw the opening salvo of a marketing bombardment that will see Microsoft try to saturate the online world with awareness of its revamped email service Outlook.com, and which may mark 2013 as the year when the rest of the internet caught up with Google.

Yahoo’s recently broadcast ambition towards regaining its presence as a search provider wasn’t so much a declaration of war against the web multinational as a reminder that there is room for other brands to thrive in people’s daily activity – but now we really do have a fight on our hands.

While Yahoo has pecked at Google’s periphery to distract it, tag-team partner Microsoft is now looming behind with a steel chair, ready to deliver a solid blow to the mailbox.

And going by the numbers so far, the wrestling metaphor isn’t complete hyperbole - during Outlook.com’s "trial period" since last July, the service attracted 60 million signups - including, Microsoft claims – 20 million Gmail defectors.

I will admit that, since I don’t use hotmail and am hardly in the market for a new email provider, I hadn’t been fully aware of the revamp. I certainly am now, and so too will be hundreds of millions of web users, as Microsoft launches a marketing campaign on a scale usually reserved for campaigns to advertise human beings who want to run countries.

Running for pretty much the entirety of the second quarter, the effort will see Outlook.com evangelised across every ad platform from TV to bus flanks, and is expected to set Microsoft back between $30m and $90m.

Much as in a two-candidate political race, Microsoft is even running smear ads on the competition, playing to the growing perception of Google as intrusive and eavesdropping.

The first of these ads pulls no punches, opening with a screenshot of an email about a cat being put down, and superimposing a pair of eerie blue eyes, greedily flickering over private information to find commercial opportunities. In today’s internet, associating your competitor with profiting from cat death is akin to a sixteenth century bishop accusing the miller’s wife of being a witch.

What is Google doing about all this? Well, to be fair, the search titan started offering users the chance to upgrade Gmail to offer a lot of what the new Outlook.com boasts (most notably the ability to send multi-gigabyte files as attachments) some time ago. The problem was that many, like me, hovered warily over the upgrade option before deciding to think about it some other time: we were happy with our mail service as it was and not really looking for a change.

Nevertheless, Microsoft’s marketing blitz, as well as Yahoo’s upcoming plans to renew its relevance as a brand, is reminding somewhere between 306 and 425 million Google account holders that there is life outside the bubble. We are certainly curious.

With the functionality of Outlook.com basically analogous with what we have already known through Gmail for most of the last decade, what will determine our eventual choice of provider is basically a question of brand.

I still associate the Outlook brand indelibly with the dour world of corporate email, and using Outlook online with its truly gruesome webmail interface. In the case of Hotmail, which Outlook.com will replace over the coming months, I retain the mid-2000s brand association with people who aren’t web-literate enough to have heard of Gmail.

I suppose it’s a good thing for Microsoft that they’ve earmarked $90m to change my mind.

Microsoft updates. Photograph: Getty Images

By day, Fred Crawley is editor of Credit Today and Insolvency Today. By night, he reviews graphic novels for the New Statesman.

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Will Euroscepticism prove an unbeatable advantage in the Conservative leadership race?

Conservative members who are eager for Brexit are still searching for a heavyweight champion - and they could yet inherit the earth.

Put your money on Liam Fox? The former Defence Secretary has been given a boost by the news that ConservativeHome’s rolling survey of party members preferences for the next Conservative leader. Jeremy Wilson at BusinessInsider and James Millar at the Sunday Post have both tipped Fox for the top job.

Are they right? The expectation among Conservative MPs is that there will be several candidates from the Tory right: Dominic Raab, Priti Patel and potentially Owen Paterson could all be candidates, while Boris Johnson, in the words of one: “rides both horses – is he the candidate of the left, of the right, or both?”

MPs will whittle down the field of candidates to a top two, who will then be voted on by the membership.  (As Graham Brady, chair of the 1922 Committee, notes in his interview with my colleague George Eaton, Conservative MPs could choose to offer a wider field if they so desired, but would be unlikely to surrender more power to party activists.)

The extreme likelihood is that that contest will be between two candidates: George Osborne and not-George Osborne.  “We know that the Chancellor has a bye to the final,” one minister observes, “But once you’re in the final – well, then it’s anyone’s game.”

Could “not-George Osborne” be Liam Fox? Well, the difficulty, as one MP observes, is we don’t really know what the Conservative leadership election is about:

“We don’t even know what the questions are to which the candidates will attempt to present themselves as the answer. Usually, that question would be: who can win us the election? But now that Labour have Corbyn, that question is taken care of.”

So what’s the question that MPs will be asking? We simply don’t know – and it may be that they come to a very different conclusion to their members, just as in 2001, when Ken Clarke won among MPs – before being defeated in a landslide by Conservative activists.

Much depends not only on the outcome of the European referendum, but also on its conduct. If the contest is particularly bruising, it may be that MPs are looking for a candidate who will “heal and settle”, in the words of one. That would disadvantage Fox, who will likely be a combative presence in the European referendum, and could benefit Boris Johnson, who, as one MP put it, “rides both horses” and will be less intimately linked with the referendum and its outcome than Osborne.

But equally, it could be that Euroscepticism proves to be a less powerful card than we currently expect. Ignoring the not inconsiderable organisational hurdles that have to be cleared to beat Theresa May, Boris Johnson, and potentially any or all of the “next generation” of Sajid Javid, Nicky Morgan or Stephen Crabb, we simply don’t know what the reaction of Conservative members to the In-Out referendum will be.

Firstly, there’s a non-trivial possibility that Leave could still win, despite its difficulties at centre-forward. The incentive to “reward” an Outer will be smaller. But if Britain votes to Remain – and if that vote is seen by Conservative members as the result of “dirty tricks” by the Conservative leadership – it could be that many members, far from sticking around for another three to four years to vote in the election, simply decide to leave. The last time that Cameron went against the dearest instincts of many of his party grassroots, the result was victory for the Prime Minister – and an activist base that, as the result of defections to Ukip and cancelled membership fees, is more socially liberal and more sympathetic to Cameron than it was before. Don’t forget that, for all the worry about “entryism” in the Labour leadership, it was “exitism” – of Labour members who supported David Miliband and liked the New Labour years  - that shifted that party towards Jeremy Corbyn.

It could be that if – as Brady predicts in this week’s New Statesman – the final two is an Inner and an Outer, the Eurosceptic candidate finds that the members who might have backed them are simply no longer around.

It comes back to the biggest known unknown in the race to succeed Cameron: Conservative members. For the first time in British political history, a Prime Minister will be chosen, not by MPs with an electoral mandate of their own or by voters at a general election but by an entirelyself-selecting group: party members. And we simply don't know enough about what they feel - yet. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog. He usually writes about politics.