Microsoft reveals Outlook.com to replace a floundering Hotmail. This week, Microsoft unveiled an overhauled social media friendly email service in hopes of reversing market share losses to Google’s Gmail.

Outlook.com promises to have a cleaner look, integration with Facebook, Twitter, LinkedIn, and coming soon Skype. The email service will also provide Cloud computing capabilities as well as a suite of free Office Web Apps including Word, PowerPoint, Excel, and OneNote. Slate.com has described the newly revamped service as “the best reason yet to ditch Gmail.”

One of the most interesting features of the new service is that it will automatically sort mass email message into separate folders allowing for a cleaner and more optimized inbox.   Users will be able to customize the process to sort mail in any way they would like. Along with the new features the design of the site promises to have more white space and less intrusive advertisements.

Currently, the Outlook mail service is a preview stage, more features and services are likely to be added when the final version is launched in a few months. Hotmail’s 324 million users will be switched over to the Outlook system in the next couple months. Users will be able to retain their Hotmail address or switch over to a new one @outlook.com.

Here at Bananatag we are very excited about this new email service and plan to offer full integration in the near future.