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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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.