HoTMaiL Which is now known as Windows Live Hotmail was one of the first web-based email services. Founded by Sabeer Bhatia of INDIA and Jack Smith launched it in July 1996 as "HoTMaiL" which further acquired by Microsoft in 1997 for an estimated $400 million, and shortly after it was rebranded as "MSN Hotmail". Before it, it was commercially launched on July 4, 1996, American Independence Day, symbolizing "freedom" from ISP-based email and the ability to access a user's inbox from anywhere in the world. If we look its original name "HoTMaiL" then we can clearly see HTML written in it and it clearly refers to HTML.

In today's world, Hotmail provides unlimited storage and take security measures to protect our data. According to comScore (August 2010) Windows Live Hotmail is the world's largest web-based email service with nearly 364 million users. Second and third are Yahoo! Mail (280 million) and Gmail (191 million). It is available in 36 different language. Windows Live Hotmail was awarded PC Magazine's Editor's Choice Award in February 2007,March 2007 and February 2011.

A security flaw in hotmail which allows anyone to login to any account just by using password 'eh' was revealed by hackers in 1999. It was "the most widespread security incident in the history of the Web" of that time. In 2001, the hotmail service was again attacked by hackers. They discovered that anyone can pull messages from any other Hotmail account by crafting a URL with the second account's username and a valid message number just by logging into their hotmail account. Tens of thousands hackers run rampant across Hotmail by the time a patch was made. Client applications for android and iOS were released by Microsoft which allows users to access their inboxes and messages. The apps, which were formerly known as Acompli, were rebranded as Outlook mobile in Jan 2015.

Sabeer Bhatia, co-founder of HoTMail, has briefly worked for Apple Computer as an hardware engineer and also worked for Firepower Systems Inc. JaxtrSMS was a free messaging service started by Bhatia. According to him, JaxtrSMS would do to SMS what Hotmail did for e-mail. He claimed it to be a disruptive technology. He said, "the operators will lose revenue on the reduction in number of SMSes on their network but will benefit from the data plan that the user has to buy." However JaxtrSMS could not be as successful as HoTMaiL.

Jack Smith worked at FirePower Systems Inc. along with Sabeer Bhatia. He invented and marketed the first Web server accelerator card that boosted server performance significantly and designed integrated circuits for use in high performance PowerPC workstations.