Founded in 1996, Sabeer Bhatia, together with Jack Smith founded the first free web-based electronic mailing service, Hotmail. They started as colleagues in Apple Computers in developing the PowerBook and their hit was the product chips to design Personal Computers for companies who are interested, and those who became interested were Java Soft and Draper Fisher Jurvetson who approved in funding their innovative product.

They founded a free e-mail service because of Java Soft’s firewall that prevent the exchange of information between networks. Being full time programmers of Hotmail didn’t bring them enough profit, as much as other e-mail services. People started to use their product because of numerous interesting features that are inevitably useful for ‘choosy’ users.

Microsoft acquired Hotmail because of too much irritation from Draper Fisher Jurvetson that is Hotmail’s biggest competitor. Inconceivable problems such as bad-resulting criticisms and lack of strategic planning made Microsoft become their light.