mahkameh yaghmaie tannaz alinaghi 9/19/2015 1 hotmail
TRANSCRIPT
![Page 1: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/1.jpg)
Mahkameh Yaghmaie
Tannaz Alinaghi
04/19/23 1Hotmail
![Page 2: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/2.jpg)
HistoryThe foundersThe conceptThe capital
The beginning The growth The competitors Options Solution
04/19/23 2Hotmail
![Page 3: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/3.jpg)
Founders (colleague)Sabeer Bhatia Jack smith
Initial goalWeb-based DB: JavaSoft
04/19/23 3Hotmail
![Page 4: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/4.jpg)
Full time workers The need to set aside some extra hours
outside the workday Difficulties in communication Web was just a directory of information The idea of a web-based communication
tool
04/19/23 4Hotmail
![Page 5: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/5.jpg)
No ISP or email provider subscription Free service Revenue model based on marketing
Provide access to subscribersTrack subscribers’ surfing habitsAllow advertisers to customize advertising
information
04/19/23 5Hotmail
![Page 6: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/6.jpg)
December 1995 Venture capital firm of Draper Fisher
Jurvetson (DFJ) For the purpose of selling a web-based
DB DFJ happened to like the email idea
more DFJ granted $300,000 for 15% of the
company
04/19/23 6Hotmail
![Page 7: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/7.jpg)
DFJ started viral marketing for HotMail Viral marketing happens when users of
a service or product advertise the service or product by simply using it
In hotmail, a message ends with an advertisement directing the recipients to the hotmail registration site
This is not junk-email It is not very different from a banner ad
04/19/23 7Hotmail
![Page 8: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/8.jpg)
Initial marketplacesConsumer marketCorporate marketPackaged web email product with Hotmail’s
software Bhatia decided to focus on the first
marketplace
04/19/23 8Hotmail
![Page 9: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/9.jpg)
Salaries and stock options were used to attract employees
“My greatest accomplishment was not to build the company, but to convince people that this is their company. I showed people how this would ultimately benefit them. . . . We initiated the avalanche.”
04/19/23 9Hotmail
![Page 10: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/10.jpg)
Launch100 subscribers in the first hour100,000 subscribers in a month1 million in less than six months
04/19/23 10Hotmail
![Page 11: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/11.jpg)
Growth issues: Intermittent service outages Junk mails
Solutions Never restricted number of users unlike Juno Implemented a new, highly scalable and
redundant architecture Able to sustain more than 50,000 new users
a day Provided filters for users Automatic control on the mailing behavior of
the users04/19/23 11Hotmail
![Page 12: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/12.jpg)
“We’re particularly excited about the load balancing design of this architecture, When [users log] on to Hotmail, they get the least busy path to their e-mail, which dramatically enhances their online experience.
04/19/23 12Hotmail
![Page 13: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/13.jpg)
In 1997 over 5 million subscribersSecond largest email provider after AOL
Competitive advantagesNo need to subscribe for a special internet
accessRevenue model based on advertisingGeographic expansionNo limit on the number of new subscribersEasy to subscribe
04/19/23 13Hotmail
![Page 14: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/14.jpg)
Hotmail optionsMerge with a large portal like MSN
Microsoft lacked a free web-based email serviceGo public
Huge competitors like AOL and CompuServe with a huge capital
Remain private Juno and USA.net continued to thrive
04/19/23 14Hotmail
![Page 15: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/15.jpg)
For company survivalDevelop partnership
OrRisk giving away potential profits to the
competitors Accept Microsoft Offer for partnership
04/19/23 15Hotmail
![Page 16: Mahkameh Yaghmaie Tannaz Alinaghi 9/19/2015 1 Hotmail](https://reader030.vdocuments.net/reader030/viewer/2022032604/56649e5e5503460f94b57e29/html5/thumbnails/16.jpg)
04/19/23Hotmail 16