January 19, 2005 9:00 PM PST
Microsoft offers subscription Outlook
Known as Microsoft Office Outlook Live, the service includes a subscription version of Outlook 2003 to connect with Hotmail or MSN e-mail accounts. For $59 a year, customers get an e-mail account with 2GB of storage and the ability to send individual messages with up to 20MB of attachments. Customers can also check multiple e-mail accounts, including corporate accounts that are managed through an Exchange server.
With Outlook Live, the software giant is trying to offer more to the power users among the Hotmail crowd--those that use Hotmail extensively but don't necessarily own a copy of Office, Microsoft lead product manager Brooke Richardson said.
"When it comes down to it, one size doesn't fit all," Richardson said.
Richardson said there is potential for more subscription versions of Office products down the road but that there are no immediate such plans.
"We think Outlook is really uniquely suited to it," she said. "We'll definitely be watching and learning."
The company began private testing for Outlook Live in December.
Among its features, the program will automatically synchronize changes made in Outlook with the Hotmail server. It also includes antispam and antivirus tools.
Through April 19, Microsoft is offering a discounted annual rate of $44.95.
Outlook Live will initially be available in the United States, Canada and the United Kingdom. Richardson said the company hopes to expand further, most likely to countries with a high percentage of homes with a broadband Internet connection.
The product is similar to the Outlook Connector feature that is a part of Microsoft's MSN Premium service, which costs $9.95 a month. However, the Outlook Connector, which works with Outlook 2002 or later, does not include a copy of Outlook.
The Outlook Live program will also serve as a barometer to gauge whether customers are ready to accept an Office subscription plan.
Microsoft has been experimenting with subscription plans for years. The company launched a subscription trial program for Office XP several years ago in Australia and other countries.
However, Microsoft cancelled the trial, saying that customers weren't ready to adopt a subscription model.
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