Looks like Microsoft wasn’t going to stay behind the pack in the free e-mail wars for long. Hotmail has announced that it will now offer 250MB of free storage right away and will offer 2GB if you pay your soul to them. The storage bump will begin in early July.
Looks like Yahoo and Hotmail did what they hope was a “just enough” upgrade that it won’t lose any users to Gmail, despite the massive differences in storage sizes compared to Gmail. You must remember, Gmail’s appearance caught everyone off-guard (remember that everyone at first thought it was one of Google’s famous April Fools jokes?). Google’s infrastructure is very scalable, apparently Yahoo’s and Hotmail’s isn’t as easily to expand as they first had to figure out how to answer Gmail, then upped their storage limits “just enough” so they won’t lose customers (their hope), but well short of Gmail.
Interesting though that Hotmail, long the e-mail provider with the smallest storage space (2MB!!!) is now a 150MB more then Yahoo Mail. I would not be surprised if Yahoo ups its storage a little more because of this. Also expect the free e-mail wars to heat up if Gmail really catches on. I wouldn’t be surprised if Yahoo and Hotmail jump their storage capacities up more, especially when Gmail is opened to the public.
Thanks but no thanks Yahoo and Microsoft, I’ll stick with Gmail.
Oh and I have invitations if anyone wants any 😉