New version of Hotmail to launch today

Hotmail will launch a new version of its popular e-mail system today that provides more storage and improved connectivity to Messenger.

Microsoft increased the storage space to compete with Gmail (which currently offers 2.85 GB storage space). Microsoft also added e-mail conversation grouping, which enables users to group all replies with the original e-mail.

The interface will also be updated and searching to e-mail archives will be more intuitive.