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.

Photo: Getty
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The big problem for the NHS? Local government cuts

Even a U-Turn on planned cuts to the service itself will still leave the NHS under heavy pressure. 

38Degrees has uncovered a series of grisly plans for the NHS over the coming years. Among the highlights: severe cuts to frontline services at the Midland Metropolitan Hospital, including but limited to the closure of its Accident and Emergency department. Elsewhere, one of three hospitals in Leicester, Leicestershire and Rutland are to be shuttered, while there will be cuts to acute services in Suffolk and North East Essex.

These cuts come despite an additional £8bn annual cash injection into the NHS, characterised as the bare minimum needed by Simon Stevens, the head of NHS England.

The cuts are outlined in draft sustainability and transformation plans (STP) that will be approved in October before kicking off a period of wider consultation.

The problem for the NHS is twofold: although its funding remains ringfenced, healthcare inflation means that in reality, the health service requires above-inflation increases to stand still. But the second, bigger problem aren’t cuts to the NHS but to the rest of government spending, particularly local government cuts.

That has seen more pressure on hospital beds as outpatients who require further non-emergency care have nowhere to go, increasing lifestyle problems as cash-strapped councils either close or increase prices at subsidised local authority gyms, build on green space to make the best out of Britain’s booming property market, and cut other corners to manage the growing backlog of devolved cuts.

All of which means even a bigger supply of cash for the NHS than the £8bn promised at the last election – even the bonanza pledged by Vote Leave in the referendum, in fact – will still find itself disappearing down the cracks left by cuts elsewhere. 

Stephen Bush is special correspondent at the New Statesman. He usually writes about politics.