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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.

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.