So in the end, why did Microsoft decide to dump Hotmail?
“We really did want to have one mail from Microsoft,” said Microsoft’s Dharmesh Mehta. “We think that’s helpful in simplifying.”
At the same time, he acknowledged the branding challenges faced by Hotmail. ”For some people, it was not about, “Would I got to Hotmail.com?’ It was, ‘Would I put @hotmail on my resume?’ ” he said. But when it comes to @outlook.com, he added, “people love the brand.”
A chart in the GeekWire story tells the real reason Microsoft had to get rid of Hotmail: People were leaving the service in droves. About four million in North America alone in the last year. The new Outlook.com is visually appealing and fast. Not good enough to get me to switch back from Gmail (Where I’ve been happy since 2004) but certainly good enough to keep current users from looking elsewhere.