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Hotmail is one of the popular free 'webmail' email services, which are accessible from anywhere on the planet via a standard web browser. It was founded by Jack Smith and Sabeer Bhatia in 1995, and was commercially launched on July 4th, 1996, Independence Day of the USA, symbolically representing freedom from ISPs.

Hotmail was backed by the venture capital firm Draper Fisher Jurvetson and was later sold to Microsoft corporation, which rebranded it under its MSN umbrella. By December 1997, Hotmail reported more than 8.5 million subscribers. [1] By February 1999 it reported more than 30 million active members. [2] Hotmail serves e-mail accounts in many countries. Hotmail is currently the largest webmail provider.

Hotmail offers many of its members 250MB of free e-mail storage, be it used for sent or received e-mail. For a fee, customers can get 2GB of storage. In contrast, Yahoo! Mail offers 1GB for free currently, to all of its members with 2GB offered at a price, Gmail from Google offers over 2GB for free.