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

Until May 10 2005 the special feature of including dots in the email address wasn't available, but with growing competition from other free email providers like Gmail and Yahoo, this feature made available to users.

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.