When Microsoft launched a new version of its webmail service called Outlook.com last summer, it was pretty clear the company was sending the world a not-so-subtle hint that Hotmail would one day be no more.Now it’s official. Hotmail as you know it is going away … and sooner than we thought.It’s not entirely unexpected. As we reported back in August when Microsoft launched Outlook.com, the company said it would start phasing out its Hotmail service and eventually do away with it — they just never said when that might be. Now we know.The company announced late last week that it is shutting down Hotmail and plans to move the hundreds of millions still using it over to Outlook.com by the end of the summer.The transition will be gradual. If you’re a Hotmail user, you will first get e-mails telling you about the switchover. You’ll have the choice to move over or postpone it, but by the end of the summer, you won’t have a choice.Microsoft has been gently prompting Hotmail users to switch over to the new interface. But if you’re one of the hundreds of millions still using Hotmail, here’s what you need to know about the transition.Do I have to get a new e-mail address?No. You can keep using your existing @hotmail.com, @live.com, or @msn.com address. Or, you can get a new @outlook.com address. But Hotmail as you know it will go away. You’ll receive several e-mails from Microsoft prompting you to upgrade on your own before you’ll be forced over to the new Outlook.com user interface.What about my existing e-mail?Your e-mail, password, contacts, SkyDrive files, calendar items and settings will all be the same as they were in your old Hotmail.What happens to all my stored Hotmail once I am moved off Hotmail to Outlook.com?Everything moves over. If you click the upgrade button it takes maybe a few seconds, but all your existing messages auto-populate and carry over.What if my Microsoft ID/Windows Live ID is tied to Hotmail? Do I have to get a new one and change my accounts?No. If you use an @hotmail.com, @msn.com or @live.com e-mail address as your Microsoft account, you can keep it, even after Hotmail is shut down for good."Think of this the same way as you would changing your cell phone carrier. You are simply moving to a better service, but your 'number' (in this case your Microsoft account and e-mail address) stays the same," a Microsoft spokesperson explained.I already created a separate, new Outlook.com account. Can I carry over everything from my old Hotmail account to it?No, there is no way to merge these accounts. But you can connect these two accounts and then toggle back and forth by linking them. The only way for all of your Hotmail items to carry over to Outlook.com is to click on the “Upgrade To Outlook.com” button you’ll see when you log into Hotmail.Why are users being allowed to keep their Hotmail addresses? Isn’t the point to get rid of the old Hotmail brand?"The simple fact is that many people are attached to their e-mail address,” a Microsoft spokesperson said. “We do expect a certain number to want a new Outlook.com address (which is great); others will want to keep their Hotmail address. Either is fine since they will all get to use the new service.”Thus far, some 60 million people have started using Outlook.com since it was released in preview last summer, Microsoft said.Besides webmail, Outlook.com also offers social networking functionality, cloud storage in the form of its SkyDrive facility, and Office Web Apps — a web-based version of its Office software. Similar in many ways to Gmail with its plethora of related web-based services, Microsoft will be doing what it can to attract the attention of users of Google’s service.Outlook.com’s uncluttered design, new features like Sweep (for clearing Inboxes of unwanted content) and the ability to send photo slide shows from your Inbox, are just some of the other features users find appealing.Microsoft is also gearing up for the launch of a global marketing campaign highlighting the benefits of switching over to Outlook.com.David Law, Outlook.com’s director of product management, wrote in a blog post that some users have “expressed appreciation” that Outlook.com also reduces the number of on-screen ads, using the extra space for Facebook and Twitter updates.“On average, people saw 60 percent fewer ads when using Outlook.com because they’re now getting much more relevant updates from their friends,” Mr Law wrote.