Hotmail to Get Storage Bump

BetaNews has learned that Microsoft is expected to begin its rollout of the next version of Hotmail, possibly as early as Wednesday. Code-named "Kahuna," this Hotmail update will sport a new interface, automatic inbox refreshing and a preview pane enabling users to read and respond to e-mail without ever leaving their inbox.

The announcement could come in tandem with unveiling of the beta releases of Internet Explorer 7 and Windows Vista, both of which are expected to be released sometime Wednesday.

Included with the Hotmail upgrade is a bump of the storage space for free users to two gigabytes; several sources told BetaNews they had already seen storage increases in their accounts. The added space would put Hotmail on more equal footing with its competitors. Google's Gmail offers 2GB, as does Yahoo! Mail.

The latest version of Hotmail would also include upgrades to Microsoft's Sender ID technology.

Sender ID has been pushed by the Redmond company as a way cut down on the number of spam messages and phishing attacks flooding customer inboxes. It has received the backing of companies such as America Online, especially following the company's move to make it compatible with competing anti-spam technologies.

Sender ID has already been live in the production version of Hotmail since January of this year.

Recognizing that it is behind in several key areas, Microsoft has engineered the next wave of Hotmail, allegedly referred to as the "competitive wave," in a methodical push to meet or exceed the competition.