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The Webmail Wars

latif writes "Much of the excitement around Gmail has centered around its innovative interface, but a pretty interface is hardly Gmail's biggest contribution. Gmail's real contribution to webmail is its innovative business model. The new business model is what's allowing Gmail to offer 1 GB storage quotas, and still have an expectation of making money. Of course, Microsoft and Yahoo have noticed this too, and one can reasonably expect them to move their webmail services to the new model. An interesting battle is shaping up between the big three webmail providers, and my article "The Webmail Wars" analyzes some possible scenarios and outcomes."

27 of 274 comments (clear)

  1. Webmail vs "regular" mail by chia_monkey · · Score: 4, Insightful

    I still find webmail an interesting phenomenon. I know there are millions of users out there. And I myself find it quite handy when I'm traveling. Being able to hop on any computer, open up a browser, and check my mail is good. But...I still don't use it that much. I have a Yahoo account (I think), I may have done a Hotmail account way back in the day, and I have my Gmail account. But even with those, I use my other accounts MUCH more. I liken it to AOL...I don't fully understand why someone would use AOL when they can get a much less intrusive and cluttered way to get to the Internet, yet they have millions of users. Same goes with my thoughts on webmail...why would someone pay for Internet service and then opt to use Hotmail?

    The only answers I can think of is to have a "safe" spot for addresses where you may end up getting a lot of spam. Or "secret" accounts. Or multiple accounts. And that's why I find these webmail wars fascinating...wars are being fought over this with the major players in the industry over something so seemingly unimportant (as say compared to OS wars, browser wars, etc)

    --

    "He uses statistics as a drunken man uses lampposts...for support rather than illumination." - Andrew Lang
  2. Not likely by The+Cisco+Kid · · Score: 4, Insightful
    All of this suggests that in the coming months, Microsoft and Yahoo will roll-out much improved webmail user-interfaces, and complement their webmail services with automated email scanning systems for the purpose of ad placement. Such systems will lead to some controversy, as some people are worried about the privacy implications of automated email scanning. Fortunately, Google supporters have made a lot of effort to appease Gmail privacy concerns, and the road is mostly clear for Microsoft and Yahoo.


    The primary reason google 'scanning my email' doesnt concern me is that google has a reputation for being honest. That google has attained that reputation gains absolutely nothing for Yahoo (spammer, spam supporter) or MS (convicted monopolist)

    I trust google several orders of magnitude further than I would trust Yahoo or MS. I would *never* use a hotmail or yahoomail account for anything other than a throwaway - yet I have in fact started using a gmail account for normal email.

    Anyone who lists an @yahoo.com or @hotmail.com email address anywhere even remotely business-related is showing that they are 'part of the consumer herd' - an @gmail.com address, on the other hand, suggests an air of elitism.

    If they follow this model, Im sure Yahoo and MS's ads will be flash and javascript popup ridden - Gmails ads are much less intrusive.

    Google knew exactly what they are doing - they arent looking for mass market share of morons.
    1. Re:Not likely by AlexTheBeast · · Score: 2, Insightful

      Anyone who lists an @yahoo.com or @hotmail.com email address anywhere even remotely business-related is showing that they are 'part of the consumer herd' - an @gmail.com address, on the other hand, suggests an air of elitism.

      I may be a gmail fanboy, but give me a break. If you list your email address domain as any webmail provider, you are going to lose my business. Sure, you can use gmail for your email address, but buy a domain and forward the email. Crap, it's only a few bucks a year.

      Remember also that gmail has not promised anybody that they can keep their email accounts. If I am depending on somebody, I don't want to see some gmail account listed.

      That being said, gmail probably has a better chance of being up than most ISPs... but still... having a gmail account for business purposes looks cheap and nonprofessional.

      Gmail does not "suggest an air of elitism." It suggests that one is too cheap to have their own email service.

    2. Re:Not likely by Malfourmed · · Score: 3, Insightful
      an @gmail.com address, on the other hand, suggests an air of elitism

      Not for long.
    3. Re:Not likely by Jorrit · · Score: 4, Insightful

      Gmail does not "suggest an air of elitism." It suggests that one is too cheap to have their own email service.

      I think you are way too elitist (is that right english? I'm not a native english speaker) if you require people to have their own email service. What's the point in that exactly? I'm certainly not willing to pay for such a thing.

      Greetings,

      --
      Project Manager of Crystal Space (http://www.crystalspace3d.org). Support CS at http://tinyurl.com/cb3x4
    4. Re:Not likely by Anonymous Coward · · Score: 2, Insightful

      Note that the parent is talking about business. Nobody cares if your personal email address is hotmail, yahoo, or whatever.

      Doing business with a @hotmail or @gmail email address would make me feel uneasy.

  3. Re:Battles by cervo · · Score: 2, Insightful

    nevertheless hotmail and yahoo have all the accounts. Can they keep their giant market share or will gmail gobble it all up? Also with the mass storage the bigger user bases cost more of a fortune to maintain while google is smaller so its initial investment is smaller. Anwyay the targeted search idea that gmail uses is brilliant. Too bad they had to go and try to file patents on it.

  4. Re:Battles by Nuskrad · · Score: 5, Insightful
    The privacy issue is the only thing that has been preventing my complete switch over.

    Really, there *is* no privacy issue - I assume your talking about the scanning of emails for targeted advertisment. It doesn't breach your privacy any more than a spam filter or antivirus software, and personally, I rather the adverts be relevant (and discrete) as in Gmail that annoying flashy banner ads in some services.

    As I side issue, I use GmailFS to provide an extra, remote drive on my computer - will Google be stamping down on this, do you think?

  5. Re:Battles by Chess_the_cat · · Score: 2, Insightful
    I've had Gmail since June and it's far from perfect. The Gmail search function needs a lot of work. Sometimes even searching by recipient won't find particular emails in the Sent folder.

    For all the talk about labels vs. folders, I find labels are counter-intuitive. Here in my filing cabinet I sort documents into folders; I don't stick 3 or 4 different labels on documents and throw them all into the same drawer. It's crazy!

    There are missing options like how about being able to permanently turn on Display External Images or turn off Auto Add to Contacts? Yeah, yeah it's Beta but that's actually my point. It's a little early to declare a Beta product the winner. How about we wait until Gmail allows signups before handing them the trophy? Because after all is said and done it isn't any better than Yahoo! mail except for the storage capacity.

    --
    Support the First Amendment. Read at -1
  6. Text vs. Graphic by pedestrian+crossing · · Score: 2, Insightful

    For me, the big difference is the use of text for the ads. Gmail advertising is not in your face. Hotmail advertising is obnoxious. Will MS and Yahoo get it? Can they sell toned-down ads to their customers (advertisers)?

    --
    A house divided against itself cannot stand.
  7. nope by excaliber19 · · Score: 4, Insightful
    This is frankly retarded.

    Sure, email will change. It might not even be recognizable as email anymore. But there is still a need on the internet for some type of "mail" system, where both parties don't have to be online. Furthermore, there is still a need to contact people you might not know.

    For instance, I had to recently contact a prof. at a university. He had no idea who I was, as we had never met or exchanged mail. Sad day for me if the new system only accepts mail from known people.

    Think a little.

  8. Re:Battles by Examancer2 · · Score: 2, Insightful

    Unfortunately a products success does not rest solely on the products ability to perform, especially in the IT industry. Windows and IE are not the most used because they are better than the competition. The sucess of webmail services from Yahoo and Microsoft have historically been from their placement in a larger portal system that has nearly endless features and content to attract users. Google does not (yet?) offer instant messaging, gaming, sydicated content (Google News generates no revenue and is aggregation not syndication), career tools, finance tools, caladers, or any of the other thousands of little features Yahoo and MSN offer under a single brand. I believe that they are fighting for different users. Very few Yahoo and Hotmail users will switch over to Gmail, especially since they both have SOME spam blocking and lots more space than before. For most users, Hotmail and Yahoo! Mail will continue to be enough for existing users of MSN and Yahoo portals. For those who are in the future attracted to the MSN or Yahoo services, they will continue to sign up for Hotmail and Yahoo! Mail accounts. But, that doesn't mean Gmail won't take off... it just won't take off by taking mass numbers of users away from Yahoo and MSN.

  9. Open Source Alternative to Gmail/Hotmail/MSN/Yahoo by unixfun · · Score: 1, Insightful

    Slashmail.org is an Open Source alternative that has more features and better functionality than the well-known email providers mentioned in this article. Slashmail.org is not free, but intended to compete with these competitors' paid subscriptions. Trial accounts are available for those interested in taking a look at the service. We offer unlimited storage, with both webmail and IMAPS access. We encourage feedback.

    --

    Slashmail.org "The Open Source Email Com

  10. Re:Battles by LiquidCoooled · · Score: 5, Insightful

    I've actually grown to like the gmail advertising model.
    Half the links they give are adverts, but the lower half are related links. The same links you get if you search for the same keywords.
    99% of the time, I find the automatic matches listed there mean I don't have to do a seperate websearch to find out more info.
    Its amazing how much more interest you can have in a subject if you can find out extra information about it :)
    I can't be the only person in the world who feels that they are a good thing.

    --
    liqbase :: faster than paper
  11. Bolded so more people see it. by anakin357 · · Score: 2, Insightful
    For all the talk about labels vs. folders, I find labels are counter-intuitive. Here in my filing cabinet I sort documents into folders; I don't stick 3 or 4 different labels on documents and throw them all into the same drawer. It's crazy!

    There is a way around this, and it's not very intuitive, I'll give you that.

    Basically just label an email, then archive it. It wont show up in the inbox, and it only shows up when you click on the label on the left (just like regular folders, but you can have the same email in multiple folders without taking up more space) or click on view all mail. Viola, folders, abeit badly designed and clumbsy, but folders, nontheless.

    --
    http://www.fsckin.com/
  12. Re:Battles by deuce868 · · Score: 2, Insightful

    I look at the beta title a lot like Firefox and Tunderbird. They are both functional programs, but they don't include all of the features and testing required for a full 1.0 release. I used both of them through their "beta" phase and I think gmail is the same sort of thing.

  13. Market saturation by yup+that's+me · · Score: 3, Insightful

    Business model aside, isn't the market pretty well saturated? I have a university address which uses my real name and is my rl address. When I graduate I get a grad address which will probably take on the same functionality. I have a yahoo account which I've held for the last five years with which I sign up to things that I reasonably trust but don't want to use my real name for. In particular I use it for newsletters. Then I have a dozen or so throw away accounts created for just one purpose, or for companies I don't trust at all. I don't *need* another account, and I have no reason to switch. I have a Gmail account, but no use for it. Yes, the searching would be quite nice, and so would decent spam filtering, but it's not enough to sway me off the other two. Most novices online will use their service-provided address. Maybe Gmail will grab their webmail accounts when they spread out, but these are less likely to be primary addresses. Most people who've been around a few months already have plenty of email addresses, and from my experience it takes a heck of a good reason to change.

  14. attitude and model by brevity · · Score: 5, Insightful

    Half of what you say is right. But:

    @gmail.com will not be a mark of the 'elite' for long. GMail is going for the mass market.

    And the point is, it's not entirely Google culture -- it's that GMail's business model doesn't require distraction. Their model is based on ads being relevant. If other webmail providers come up with similar relevance technology, they may become as sleek and non-intrusive as GMail.

    But you're right -- attitude matters. MS and Yahoo work by traditional techniques, i.e. dangling tasty candy to consumers, in order to deliver eyeballs to corporations. From the era of television.

    Google, thankfully, has a different attitude. They're not trying to go against the nature of the web and make it more like TV. They're trying to draw more businesses into the internet way of doing things.

  15. Re:Battles by goynang · · Score: 5, Insightful
    For all the talk about labels vs. folders, I find labels are counter-intuitive. Here in my filing cabinet I sort documents into folders; I don't stick 3 or 4 different labels on documents and throw them all into the same drawer. It's crazy!


    You're so wrong it hurts me!

    Computer interfaces don't have to be exact mimics of the real world. They can improve on it too sometimes! If your filing cabinet could hand back the right documents when you just ask for some specific label then you probably would just throw them in the same drawer. Just because your real world filing cabinet can't do this doesn't mean an on-line version of a filing cabinet should have the same limitation.

    Being limited to only one 'home' for stuff that could be categorised into many is what's crazy.
  16. Re:Would like to go to gmails party.... by Deorus · · Score: 2, Insightful

    > What's with the Google business model anyhow? Do they think they can prosper by having "exclusive" customers?

    Your point of view is logical and indeed expectable, but Google successfully exploits one of the most ignored and powerful forms of publicity: the word of mouth. Word of mouth is effective because it is a friend of yours who is advertising the said product, and he's not being paid for it, you believe him because you know that he's telling the truth about his experience, and if the said friend happens to be a computer geek, you believe him twice more, so you better give it a try while you have the chance, otherwise you may lose your exclusive opportunity. If you scrap the first chance and everyone around you joins the "community" you will feel even more tempted to become a part of it.

    I had to deal with this issue a year ago when massive amounts of IRC friends joined Orkut and began exchanging contents and speaking through and about it everywhere all the time. My reaction? No I didn't join Orkut, I left IRC! But this only proves how effective Google's publicity model really is. People would never pay as much attention as they do if it was not an "exclusive" service.

  17. The entire 1 gigabyte size issue.... by weave · · Score: 3, Insightful
    A lot of emails are duplicated, results of cc lists, mailing lists, etc. Since google is already good at indexing web pages and caching stuff, if they applied the same sort of index/cache issue to emails and your gmail account was just really a list of references to the stashed messages, I bet they could reduce the space even further.

    The same goes for attachments. Somehow index them and store them seperately.

    For example, I was sent an Ashley Simpson 3mb attachment when that first came out, and I noticed 4 others on that message that had gmail accounts. How many other gmail users got that same attachment?

  18. Gmail very un-Googlish by geg81 · · Score: 4, Insightful

    The biggest problem with the Gmail interface is that it uses so much JavaScript; it doesn't run at all on many handheld browsers. I think at least they need a simplified XHTML interface.

    The POP feature also makes no sense to me; it basically begs you to download messages from their servers when their stated goal is to collect lots of mail. If they offered IMAP access instead, people could keep their messages on the server. They could even use IMAP for placing subtle adds (e.g., message "1" is always some kind of simple ad, but unlike spam or hotmail, there would always only be one advertising message).

    An area where Gmail could really do something better is passwords: they really should offer one-time passwords for travelers. Right now, when traveling, there is a high chance with web-based mail that your password gets compromised.

    In any case, for fairly little money, you can get large mailboxes with IMAP interfaces from other companies, and you get a lot more control over them than with Gmail. Currently, Gmail's "free" isn't good enough for me to save the money I get with a commercial provider.

    1. Re:Gmail very un-Googlish by geschild · · Score: 3, Insightful

      If you want to climb on a horse over the implementation of the interface, remember that javascript works on more than IE alone. In this way most modern browsers are supported, admittedly not some of the simpler handhelds but hey, you can't please everyone. Most 'simpler' handhelds do Pop3 nowadays so they are/will be covered.

      Furthermore, if they would like to get on the Geeks good side they should make a XUL version of their interface. That would create the killer-app for XUL in one go.

      --
      Karma? What's that again?
  19. Re:Battles by cmacb · · Score: 4, Insightful

    "For all the talk about labels vs. folders, I find labels are counter-intuitive. Here in my filing cabinet I sort documents into folders; I don't stick 3 or 4 different labels on documents and throw them all into the same drawer. It's crazy!"

    So, how often do you go to the Xerox machine, make three copies of the original document and file the four copies in four different places? How do you keep track of the fact that you have done this? Do you write on each copy a list of all the other places it's been filed? Do you ever have to make a note on one of these documents and then have to go locate the copies to make the same note? You must have lots of filing cabinets.

    The nice thing about labels is that there is only one copy of each document. Evolution handles this also with what I think they call "Virtual Folders". In the real world, of course, you must rely on the Xerox machine and whatever complex scheme you come up with to maintain these copies of things and keep them in synch. This is one of the many things from the real world that need not, and should not be copied to the virtual world. It takes some getting used to, but labels (virtual folders or whatever you want to call them) is a better system. Trust me.

    Of course, for people like you who are already USED to some very specific filing system Google could have taken a slightly different approach. I would have (and have suggested) that they allow for "move" and "copy" operations between the labeled groupings. So rather than apply label "friends" to a new message and then Archive it (to remove it from my Inbox), simply "move"ing it to "Friends" would have the same effect. I could also "move" a message from one label category to another in order to remove the old label and attach the new, or "Copy" from one label grouping to another in order to have both labels. The advantage of this paradigm is that it saves a step in most cases. It would also satisfy the needs of some people for the paradigm they are used to. The only "odd" thing about my way of doing it would be the need to warn a user if they were about to delete the last "copy" of a message. Deleting all but the last "copy" of a message would simply be removing extra labels from it, deleting the last copy would be marking it for trash. At no time would there actually be more than one copy of the file though.

    I suspect some future versions of file systems will take this approach too, using "links" to store the apparent copies without the user having to do that explicitly. Some extra tools would be required to allow for backups (when you actually want a copy) or clean-ups when you actually want to delete files. File systems that implemented this at a low enough level would save a lot of fragmentation as well, since a lot of files that are opened for update end up never actually getting updated.

  20. Re:Battles by cmacb · · Score: 3, Insightful

    "How long ago did they promise 250 MB for each account? And I'm still running on 2 MB? The new credit cards they hand out have almost as much memory as a Hotmail account, which is just sad. But hey, we all knew it was a Microsoft marketing stunt."

    I agree that it's both a joke and a stunt :) But I DID finally get my 250meg a few days ago. Something like six months after they convinced all the technical journals to make the claim for them. I'm very disappointed (but not surprised) that so few of the professional publications called them out on this. The Hotmail interface sucks. Yahoo is much better, and Gmail is better still. Ditto for performance.

    I think the biggest impact of Google to both Yahoo and Hotmail is that both services are now having to give away for free service levels that they were previously charging for. My guess is that sign-ups for these extended services are way down, and those who are signing up are doing so because they actually intend to make use of all that extra storage (2-gig for Yahoo for example) and are going to want to be on the phone yelling at someone anytime it's not available. In other words those that do pay for these formerly free services are going to be the squeaky wheel types that will eat up all your proffit margin.

    It hasn't been that long (1999 or so) since several companies were offering free online disk storage, online word processing and several other services. The dot-com-bust made them all dry up real fast. I'm glad to see the moneyed players start testing these waters again though since I think the future of computing (especially for the home user) is going to be free or near-free online services rather than having to have an ad-hoc systems administrator in every household in the land. The Microsoft "everything on your desktop" model was moronic from the get-go and it took a "genius" like Bill Gates to actually profit so well from such a bad idea. Now if we could get back to true technology, which was already in progress before the Microsoft interruption.

  21. Failures. How to use Spamassassin. by donsaklad · · Score: 1, Insightful

    Many Spamassassin users do not have the mastery of computers that is presumed by the spamassassin principle people. More and better basic users materials without the industry jargon is needed.

  22. Re:Battles by Anonymous Coward · · Score: 1, Insightful

    For bonus points, describe how you would find that time and date email with a regular email setup.