Microsoft has announced the Windows Live @ edu program http://www.microsoft.com/presspass/features/2006/apr06/04-21WindowsLiveEDU.mspx  for colleges and universities. Hosted email has been around for a long time. Windows Live @edu is different because it allows the university to provide email addresses to students and alumni with their own .edu domain name. Another big factor is that the university controls the user directory so they can add or delete names at their discretion.

I have said for years that the big thing preventing small companies from using Hotmail for their company email system is control of the user directory or "name space". This is critical because a company needs to be able to disable an email account when an employee leaves the company.

If your best sales person uses a Hotmail email account to communicate with all your customers, and then leaves the company to go to a competitor, then the sales person still has direct links to all your customers through the Hotmail account. There are other good reasons why a company needs to control the user directory.

The second big reason small companies don't use Hotmail for their company email is the domain name. They want to have their own company name in the domain name.

Now Microsoft Windows Live is enabling universities to manage the user directory and have their own email domain name. If this program is extended to small business it could be a huge success.

The Windows Live @edu program also provides free MSN Spaces, blogs, instant messaging, as well as calendar and address book.