In a post on New York Times’ Bits blog, Nick Wingfield wrote that Hotmail, one of the earliest online e-mail services, is headed for retirement. As per this blog, Hotmail owner Microsoft (News - Alert) has previewed a new Web-based email service called Outlook.com, which many use to send e-mails, manage contacts and organize calendars.

The blogger wrote that the new Microsoft service has a simple design with improved links to social networks like Facebook (News - Alert). Plus, to find most important messages quickly, it offers tools to efficiently sift incoming emails. Similarly, based on Microsoft announcement, the blog indicates that advertising will be less obtrusive in the new service.

In reality, wrote Wingfield, Outlook.com is the beginning of a gradual phase out of the Hotmail we know. By making the transfer task simple and easy, the software giant is planning to persuade more than 325 million Hotmail account holders worldwide to convert to the new Outlook service. In other words, Microsoft is asking all Hotmail users to move all their messages and contact information to the new service.

Although, Microsoft said that it will not force or compel Hotmail users to adopt the new Outlook.com service as of now, the company will eventually move them over to the new site.

Presently, Hotmail has more users worldwide than any of its competitors. However, as per the Bits blog, the email service has fallen into third place in the U. S. behind Yahoo and Gmail, the number one and two e-mail services. Also, Microsoft has owned Hotmail since 1997.

As compared to Gmail or Yahoo mail, Hotmail is perceived as an outdated e-mail service. Hence, Microsoft feels the need to replace it entirely rather than renovate it or reorganize it, wrote Wingfield. Unlike Hotmail, Outlook has wide recognition amongst professionals, noted Wingfield.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO West 2012, taking place Oct. 2-5, in Austin, TX. ITEXPO (News - Alert) offers an educational program to help corporate decision makers select the right IP-based voice, video, fax and unified communications solutions to improve their operations. It's also where service providers learn how to profitably roll out the services their subscribers are clamoring for – and where resellers can learn about new growth opportunities. For more information on registering for ITEXPO click here.

Stay in touch with everything happening at ITEXPO. Follow us on Twitter.