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Exchange ActiveSync to arrive on Hotmail on Monday

REDMOND, Wash.—One of the features promised as part of the latest update to Hotmail will arrive next week, CNET has learned.  —  In an interview here on Thursday, Microsoft's Dharmesh Mehta told CNET that Exchange ActiveSync

CNET News Ina Fried

Context & Ripple Effects

Hotmail has spent two years carrying the 'stagnant' label — LiveSide asked what happened to Hotmail? back in September 2008 while Gmail kept shipping. The latest wave of updates, of which Exchange ActiveSync is one promised piece, is Microsoft's answer: turning a browser-era inbox into a service that syncs natively with phones.

The timing is not incidental. Microsoft confirmed this week that it is committing more than half a billion dollars to jump-start Windows Phone 7, and every major smartphone platform — iPhone, Android, and Windows Phone — already licenses ActiveSync. Giving Hotmail an ActiveSync endpoint means the free consumer mailbox can act as a first-class sync source on the very devices Microsoft is about to spend that money promoting.

First-order effects

  • Hotmail users get over-the-air push email, contacts, and calendar sync on ActiveSync-capable handsets starting Monday — functionality that previously required Exchange or a paid/premium account elsewhere.

Second-order effects

  • Free webmail rivals Google (Gmail/Sync) and Yahoo face pressure to match full push-sync at the free tier, since Microsoft just removed a differentiator that pushed users toward paid or competitor accounts.

Third-order effects

  • If ActiveSync keeps spreading across free consumer services, Microsoft's licensed protocol hardens into the de facto standard for phone-to-cloud sync — giving Microsoft leverage in the handset ecosystem even on iPhones and Android devices running its software.

The trend: Consumer webmail is shifting from browser-bound inboxes to always-synced cloud endpoints, with Microsoft's licensed ActiveSync protocol becoming the connective tissue between mailboxes and smartphones.