Another feature of the new Messenger presented was the ability to share folders with a buddy. The idea is that dragging a file on top of a contact would allow you to create a shared folder. That folder would exist on both members' desktop and stays up-to-date with any changes to the file. While that capability was built in-house, Microsoft said Thursday morning that it is buying another service, called FolderShare, to assist in its Windows Live efforts.
On the mail side, Microsoft has been showing the improved Web mail program, code-named Kahuna, for some time. However, the name change here is a big deal given the widespread recognition of the Hotmail moniker. Still, Microsoft doesn't plan to force people to change their existing hotmail.com e-mail addresses.
Another service demonstrated, but not yet available, is Windows Live Local. In his presentation, MSN vice president Blake Irving outlined a local search service that included elements of Microsoft's Virtual Earth mapping. Eventually, the company could add tools that enable members or their buddies to create annotations, creating a personalised map of their favorite spots in the city.
Microsoft also showed off a preview of a mobile search tool as part of a mobile version of Windows Live. With the service, Microsoft is aiming to have a compact Web search page that can find a nearby restaurant or gas station. It will be viewable via both Windows Mobile devices and ordinary cell phones that have a Web browser. The tool is not yet available, but should be in beta "soon," Microsoft said in a posting on its Web site.
Channeling the spirit of Hailstorm
The whole point of launching Windows Live even with some rough edges, Microsoft insisted, is to get a sense of what it is that people want. The company is also banking on its ability to rapidly update and improve its services, following the model of MSN, Google and Yahoo.
"A lot of people are characterising this as a response to Google, and in some ways, maybe it is," Rosoff said.
But the analyst also noted that the notion of delivering software as a service is a company approach that predates Microsoft's rivalry with Google.
"The idea of moving to online services has been kicking around Microsoft for a long time," he said. Indeed, Microsoft had a companywide meeting in the late 1990s at which top executives outlined plans to deliver all manner of software as a service.
"Like many things around the Internet that were predicted to happen quickly, they're not wrong, they're simply things that take more time," Gates said in a March interview.
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Windows Live borrows many items from Microsoft's existing MSN services lineup.
Old
New
Start.com:
Enables people to aggregate RSS feeds from across the Web. In "preview" mode since earlier this yearLive.com:
Designed to take things a step further. Allows people to save search queries as well as data from their PC. Some features are in beta, others are planned for later.
Hotmail:
Venerable Web e-mail service, acquired in 1998, will come under Windows Live umbrella. Will lose the "Hotmail" name.Windows Live mail:
More like desktop mail software, with features like spell-checking and phishing detection. Microsoft has been testing the improved service under the code-name Kahuna.
MSN Messenger:
IM client already has several forms, such as the MSN-branded service and the Windows Messenger program built into the operating system.Windows Live Messenger:
Will add social networking and Net telephony features. Beta planned for December.
MSN Spaces:
Web log software introduced in December 2004 as competitor to Blogger and Blogspot.Windows Live Spaces:
MSN Spaces "will transition to Windows Live Spaces as Microsoft adds new features to the service next year."



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