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While Hotmail does not have POP3 email access, it is possible to check your email using Microsoft Outlook and Outlook Express on PC and Microsoft Entourage on Mac, using the WebDAV protocol. While this service was free for a number of years, Microsoft announced on September 27, 2004 that they were making it a subscription-only service for new users immediately and existing users from April 2005. However, users can get around this restriction using FreePOPs 1, a flexible free software application that allows email client access to webmail services through POP3.

In December 2004, Microsoft started its new blogging service (beta) called MSN Spaces and integrated it with MSN Messenger and Hotmail.

Jack Smith first had the idea of accessing e-mail via the web from a computer anywhere in the world. When Sabeer Bhatia came up with the business plan for the mail service, he tried all kinds of names ending in 'mail' and finally settled for hotmail as it included the letters "HTML" - the markup language used to write web pages. It was initially referred to as HoTMaiL with selective upper casing.