Maria Lourdes C. Capilitan                                                         

SysAnal (O0A)

May 27, 2008

Case Study

“Hotmail”

Sabeer Bhatia

            Hotmail is born last 1996. The founders of this start-up are Sabeer Bhatia and Jack Smith. It is a first web-based email, offering people free email accounts that can be accessed through the web.

            Sabeer Bhatia and Jack Smith are colleagues at Apple Computer for project for Power Book Portables. They decided to join a start-up that was created by their manager. Their product chips were used in designing PCs. It is multiple operating systems that is highly in demand for people. In starting the product they had took the risk and prioritize this product. They even look for some companies to sponsor them. The Java Soft was installed firewall to prevent Sabeer Bhatia and Smith connecting to each other. This gave them the idea to solve their problems about the exchange e-mails. After some conflicts with Java Soft, Draper Fisher Jurvetson (DFJ) and Tim Draper approve the funding of product. DFJ aim to gain money to their company and because of that every time Bhatia and Smith approaches other company’s, DFJ refuses to partner with it. They became full time in Hotmail. They come up with this tagline. “This message has been sent from Hotmail. Get your free e-mail at hotmail.com.” They didn’t gain much profits as much as goggle did, but didn’t lose much money. There were lots of turning points for hotmail, first, getting $300,000 in funds, second, is when people started to use their product. They got problem when they went through the second financing. Financing is the biggest challenge for Hotmail. Form the day that DFJ do not share too much information, Hotmail got irritated. From this point Sabeer Bhatia started to talk to Microsoft.

            After being successful on their product a few advices were given for the people wanted to have their own start-up. First, they said that you should make sure you write a business plan because it will take shape the thoughts. They should also make sure that someone will criticize and ask some questions. The plan would say what the company is going to do, like how to solve a problem, how big market is, the source of revenue, strategies for investors, how it will be advertise, and lastly, the right people needed. Second, beware of the behavior. You might be surprised in the results of the program. He lastly said that we have natural talents that we should develop and use it properly. Sabeer Bhatia didn’t have any formal lessons but sill he came up with this product that was successful and known to the world.