Microsoft and GoDaddy launch hosted mail service

Microsoft and GoDaddy are offering a new webmail service

Microsoft has teamed up with hosting provider GoDaddy.com to launch a new mail service for small and medium-sized enterprises (SMEs).

The new service will be based on Microsoft's Outlook and Exchange Server 2007 code and will include mobile, group and single-user email plans.

The two companies hope that the service will appeal to SMEs seeking to manage multiple email accounts from a single space.

In addition to email, the new service will feature hosted calendars and address books which can be shared among multiple users or accessed from remote locations.

"Our goal is to be a one-stop shop for every customer," said GoDaddy founder and chief executive Bob Parsons.

"We have many customers who currently use Outlook for their email. It was only natural that we expanded our offerings to include mobile and group email plans with Microsoft Outlook."

For Microsoft, the announcement is the latest in an ongoing effort to boost its hosted service portfolio.

The company has previously used web services only to complement its core software offerings in a system known as 'software plus services'.

Microsoft indicated that it will soon be moving deeper into web services when chief executive Steve Ballmer revealed last week that the company is preparing a new cloud-based operating system which will be launched later this month.