Microsoft launched Outlook.com in 2012 as the webmail service intended to replace Hotmail.
The service was introduced on July 31, 2012, when Microsoft made a preview version available to the public. Existing Hotmail users could upgrade, while new users could choose an @outlook.com address. The redesign gave Microsoft’s consumer email service a cleaner identity built around the Outlook name.
Hotmail had a much longer history. Sabeer Bhatia and Jack Smith founded it in 1995, and Microsoft acquired it in 1997. The service was later branded MSN Hotmail and then Windows Live Hotmail before Microsoft began moving users to Outlook.com. The transition was completed in 2013.
Outlook.com is often confused with Microsoft Outlook, the desktop and subscription email application. They share branding but are distinct products: Outlook.com is Microsoft’s personal webmail service, while Microsoft Outlook is an email client and productivity application. The older Hotmail.com address domain continues to work for many existing accounts.