The new online app sifts through all the photos you’ve ever sent via email — and if your habits were like mine before sharing through mobile apps became the norm, you attached a lot of photos to email — and organizes them in an album. Photos can be filtered by year or by the name of a person you exchanged photos with.

The app is pretty simple to use: You go to Retrosift.com, type in your email address and are asked to allow access to the app. Retrosift then begins sifting through your photos, and several minutes later presents them in a timeline. Fond memories and embarrassment ensue. If you’d like to save or share the pictures, you can send them to Dropbox or Facebook from the app. Retrosift works with Gmail, Hotmail, Yahoo and AOL mail accounts.

And since giving third-party apps access to email is cringeworthy in itself to some people, users can then disallow access to the app once their photos have been dug up. (For example, in Gmail, you can go to Authorizing Applications & Sites under the My Account area in Gmail, and revoke access.)

Retrosift does come at a small cost: The company is charging a one-time fee of five dollars for three months of access to the photo timeline. It’s not an auto-subscription, so once the three months are up, you lose access to the Retrosift timeline. Of course, the photos are all still there in your email inbox; you’ll just have to dig to find them yourself, assuming you actually want to do that.

Retrosift was created by three former Yelp employees, Bryan Byrne, Rhett Garber and Neil Kumar, who came up with the idea when Byrne’s mother was trying to find an email containing a photo of one of her granddaughters, born three years earlier. Byrne says the trio doesn’t know yet how they plan to build out their company — or if that’s even related to the Retrosift app — and for now, they’re just looking to build a fun app.

“Rather than just talk about vaporware and bigger visions, we said, let’s just build a utility that’s good, and then focus on the big picture,” Bryne says.

Photo-sharing site Flickr also has a tool that allows people to upload images from their email accounts. Pixable is a mobile and Web app that sorts through your Facebook photos for you, presenting them on a Pinterest-like board and emailing you the top photos of the day from your Facebook network. And lots of other mobile apps now aim to search and sort through the many apps on your mobile phone, including PhotoCal, Photo-Sort and Sortshots. Other apps aim to zap your duplicate photo files.

As expected, the European Commission approved Microsoft’s $8.5 billion acquisition of Skype late last week.

Next, the deal for the popular Internet communications company — which had previously been cleared by U.S. regulators — is likely to officially close later this week (paperwork!), said several sources close to the situation.

Now, of course, comes the hard part — which is whether Microsoft can successfully integrate the more nimble Skype into the belly of the software beast and allow it to thrive.

Some key questions:

How smoothly can Microsoft integrate Skype into its existing products, such as its unified communications platform, Outlook mail and Hotmail, Office, Messenger and Xbox Live? And, perhaps most of all, Windows Phone devices?

That said, will Skype also get to do what it needs for its own success beyond Microsoft? That includes working with mobile rivals Apple and Google, who now dominate the smartphone market, as well as many others. It has already managed to buy GroupMe group messaging start-up for $85 million, just months after its own acquisition in May.

And can the division — which will be led by Tony Bates, Skype’s CEO and now a Microsoft president — operate successfully located mostly away from the power center of Redmond, Wash.? Skype has a substantial office in Silicon Valley, as well as key engineering units in Estonia and Stockholm.

In that vein, will Microsoft be able to hold on to new talent like Bates and Skype’s geek squad, all of whom have substantial choices elsewhere? Like a lot of large tech companies, Microsoft is not known for being able to hold on to those who come in from the outside, in large part due to its insular culture of longtime execs.

In other words, how big a welcome will Microsoft’s other powerful presidents — such as Windows division head Steven Sinofsky — give Bates and company?

That said, there was quite a bit of napping on the job by some popular Web sites on Thursday night.

Apple’s store was down, displaying the “be back soon” message that typically presages new products being added, though it wasn’t clear if this was the reason for Thursday’s downtime.

Separately, Microsoft was having a devil of a time with its consumer Web services, with properties like Hotmail and SkyDrive out of commission and Office 365 also reporting problems.

“We’re aware of an outage impacting Hotmail, SkyDrive, and our other properties,” Microsoft said in a tweet. “We are actively working to resolve this issue. More to come.”

A separate Twitter message said that Office 365 was starting to see some resumption of service.

Update: A follow-up tweet from Microsoft said the company believes it has resolved the Web issues, although I am not able to access my Hotmail account as of 10 pm PT.

In addition to offering speed improvements, the company is adding new features, such as the ability to respond to a Facebook message directly from within an email or see updates from Twitter. Some new features, such as the ability to view photo slideshows and YouTube videos from within an email are already part of rival services, such as Microsoft’s Windows Live Hotmail.

The revamped mail program, which has been in the works for about a year, also integrates instant messaging and text messages more deeply, archiving conversations by default. A built-in tool from YouSendIt is included for sending large files, with additional services built in for other tasks, such as tracking purchases or unsubscribing from bulk email. On the instant messaging front, users can now converse via Facebook Chat from within Yahoo Mail.

“Yahoo’s vision for online communications brings together all the tools that people use to connect–email, chat, SMS, and social updates–and makes it easier for them to share content and engage in conversations with the people that matter most to them,” Yahoo Chief Product Officer Blake Irving said in a statement.

Yahoo has been beta testing the new mail program since October. The company did a major overhaul of the mail service back in 2007.

Despite remaining the top email provider in the U.S. with close to 90 million accounts, Yahoo has been losing ground in recent years, dropping 7 percent in the U.S. and 1 percent globally over the last 12 months, according to ComScore.

On the mobile side, Yahoo said it is making a new version of its software available to Nokia. The Finnish cell phone maker signed a deal last year to have their email and chat features “powered by Yahoo.”

As the VP of social at eBay, Bradford will head up one of the company’s four main focus areas that it identified earlier this year. In addition to social, the other three areas are mobile, local and digital payments.

While most of those areas have already been accounted for through recent acquisitions, including Milo and Where–and eBay’s PayPal division–social was mostly unspoken for.

We are hearing that Bradford started at the company on Monday and will be reporting to Dane Glasgow, eBay’s VP of global product management. A company spokesperson declined to comment.

While it’s a unclear what Bradford will be working on exactly, the e-commerce company has been experimenting with some social projects, including group gifts, which makes it easy for multiple individuals to collectively chip in to pay for a gift for someone else.

Bradford is known for being a long-term Microsoft employee, having left only seven months ago to join Yahoo. At Microsoft, he worked on Bing’s user interface team in Mountain View, Calif., and previously worked on Microsoft Live Search communities and MSN Hotmail.

In October, he joined Yahoo as VP of Communities as engineering lead for Answers, Address Book, Delicious, Flickr, Groups, Koprol, Meme and Pulse, according to LinkedIn.

Bradford will be based in San Jose.

In large part, that’s because if Facebook Messages were evaluated as an email system, it would look terrible. There’s no incorporation of IMAP so you can access your mail from other clients, there’s no way to save drafts, there’s no way to cc people, there are no folders.

Even more jarring, there are no subject lines or time stamps, and you only ever have one continuous conversation with a contact. Instead, like instant messaging, when you type a message and press enter, it gets set loose to your contact.

But maybe Facebook has a point, and we don’t need all that cc, bcc gobbledygook for personal communications. Maybe we just want to more casually correspond with each other. And some of these email conventions have probably outlived their usefulness. Facebook says prior to the change its top three subject lines were blank, “Hi!” and “Yo.”–if that tells you anything.

The problem is, the way Facebook Messages works is a bit complicated and unfamiliar. You can see why the company is rolling it out very, very slowly–it’s the kind of new experience that aggravates people and makes them whiny.

Facebook Messages treats the correspondence between you and another person as a single conversation, whether it’s by IM, within the Facebook Messages interface, received as an email or as a Facebook-delivered SMS. Often those channels overlap. Messages that are not from Facebook members, and those from entities other than individuals, get shunted to a second-tier inbox.

Yesterday I was playing with the new Messages, first within the Messages interface on the Facebook Web site, then on IM on the Web site, and then via text message when I closed my computer. A few things confused me–for instance, chat is disabled and disappears when you go into Messages. I guess it’s redundant to have the same conversation in two places. But as someone who felt like I was in an IM chat, it was super weird.

Another thing that’s odd is that those life-time conversation threads only really work for one-to-one relationships. Group messages seem like a little bit of an afterthought; for instance, group threads show a split-screen image of two of the participants’ profile pics, no matter how many people participate. The system is prejudiced against people who email you from outside Facebook (say, your mother emails your @Facebook.com address from an @Yahoo.com address), until you explicitly say you want to see them in your main Facebook inbox. If a person sends you messages from two email addresses, Facebook doesn’t allow you to help it understand that they are the same person.

While I will probably acclimate to the Messages experience over the next few weeks, one thing that’s going to continue to be very annoying, and accentuated by Messages, is redundant Facebook notifications. Already a problem for those of us who use Facebook on multiple platforms like the Web and a phone app, redundant notifications run rampant in Facebook Messages. Say someone sends you a message from the Web site and checks the box to send it to your phone. Without changing any defaults, you could get a text message from Facebook, an email message from Facebook, a new IM on the Web site and a flag that you have a new message in the Facebook nav bar.

I spoke to Messages product manager Dan Hsiao yesterday, and he said the team had thought carefully about trimming down notifications but decided it would be worse if users weren’t alerted to the fact that they had a message.

Hsiao said that his mantra in building the product was to make it “email compatible but not email complete.”

I think there will be two main outcomes from the new Facebook Messages:

• Other Web mail outfits will (and should) better integrate their email and instant messaging conversations, based on Facebook’s example. Folks like Gmail can go one better, and incorporate additional forms of communication like voice messages. Facebook is right–there’s no reason this shouldn’t all be condensed and scannable.
• Provided the Facebook Messages product doesn’t have major usability issues, it will continue to supplant email, especially for young people. There will be a bigger distinction between formal, especially corporate, correspondence via email and personal messages. If you think about it, we all already make a distinction between messages from people and messages from mailing lists, and Facebook is right to say the ones from people are more important.

The thing is, Facebook Messages splits out a part of the communication experience that is, for most, a part of other tools and services.

Facebook Messages won’t replace email for people who use email for professional purposes, people who prefer desktop mail clients or people who firmly associate themselves and their archive of emails with an existing address.

Rather than killing Gmail (and its much larger competitors Hotmail and Yahoo), Facebook Messages will probably have the biggest impact on usage of IM services like AIM and GChat. The only thing the new product will fully replace is the previous version of Facebook Messages–which, by the way, has 350 million active users, and four billion messages sent per day.

Please see the disclosure about Facebook in my ethics statement.

Background: Last week, Google stopped allowing Facebook to help its users find their friends by importing their Gmail contacts list. Google said the move was about data portability and liberation, calling Facebook a “data dead end” because it wasn’t giving its users’ email addresses to Google.

Facebook yesterday found a workaround to re-enable Google contacts importing, and Facebook engineering lead Mike Vernal commented on TechCrunch at length under his own name, charging Google with hypocrisy for disallowing contact importing for Orkut last year and “limiting user choice.”

What’s funny, though, as sources have pointed out to us, is that Facebook actually does allow email importing, specifically to Yahoo Mail and Microsoft’s Hotmail (we checked AOL mail too, but couldn’t find it there).

This is no secret; Yahoo launched its Facebook email contact importer in March of this year. In a blog post at the time, senior product manager Rick Pal said,

Importing from Facebook is super simple…After you click login, we will authorize your account and begin importing, which may take a minute or two depending on your Internet speed and how many Facebook friends you have.

Update: Microsoft confirmed through a spokesperson that its Windows Live users can import both Facebook and Gmail contacts, and said some nice stuff about its commitment to customer choice.

Access to user emails isn’t something Facebook gives just anyone. In fact, only a few partners can hook into them while the rest have to rely on users’ Facebook-formatted information available through Facebook Connect. That includes Google. The difference, according to a source, is that Yahoo and Microsoft asked nicely.

Please see my disclosure related to Facebook here.

I believe that the Microsoft Office 2007 “Ribbon” user interface is one of the great abominations in the history of personal computing. Are you aware of any workaround that can restore the “classic” interface that was used in prior versions?

A:

Microsoft (MSFT) didn’t offer an option to replace the 2007 Ribbon interface–which is intended to group functions more logically and make them easier to find–with the classic menus and toolbars. However, a number of third-party companies offer add-in programs that do so. You can find these by simply doing a Google (GOOG) search for “Office classic menu.” I haven’t tested these, so I can’t recommend any particular one. Note also that, in the newer Office 2010, Microsoft has introduced the ability to customize the Ribbon, so your favorite commands are clustered in your own personalized tabs. More information on this is at: http://bit.ly/aTS05D.

A low-tech answer to a reader’s question on the AT&T MicroCell tower.

Q:

Is there any way to turn the AT&T MicroCell on and off so that I don’t have a mini cell tower constantly blasting radio waves around the house?

A:

Sure. You can simply unplug it, by pulling the power adapter out of the back. But be aware that it won’t restart instantly when you plug it back in. It takes much longer for the MicroCell to re-establish its network and GPS connections than it takes for a standard Internet router to come back to life after being turned off.

Q:

I am buying a new laptop primarily to send email and to surf the Internet. Are there any worthy alternatives to Outlook so I don’t have to spend a lot for Outlook or a bunch of Microsoft Office programs I won’t need or use?

A:

There are some decent free alternatives. One, from Microsoft itself, is called Windows Live Mail, and can be downloaded free at http://bit.ly/baYTM3. Another, also free, is Mozilla Thunderbird, at http://bit.ly/2zxpYm. Or you could just use free Web-based email programs, like Gmail, Yahoo Mail, or Hotmail.

Write to Walter S. Mossberg at walt.mossberg@wsj.com

After what he considered weeks of unfair press coverage and running down of Microsoft (MSFT), the software giant’s Corporate VP of Corporate Communications, Frank Shaw, posted a pugnacious corporate blog entry today that trotted out some impressive numbers about Microsoft’s business.

Of course, he also took the opportunity to put up some not-so-much figures about competitors such as Apple (AAPL), Netflix (NFLX), Salesforce.com (CRM) and, of course, Google (GOOG).

My favorite dig is the stat on the “percent chance that Salesforce.com CEO [Marc Benioff] will mention Microsoft in a speech, panel, interview, or blog post.” The answer, natch: 100!

As it turns out, that was a follow-up to a very sharply worded letter Shaw sent out to communications teams across Microsoft (MSFT) earlier this month, obtained by BoomTown, in which he noted at the start:

“It has been a rough couple of weeks for us from a coverage standpoint. It seems like every time I turn on the computer, or talk to a reporter, or pick up a publication at home, or do a scan of my RSS feeds or Twitter client that I see more stories and opinions about the challenges we have, and how great some of our competitors are doing. iPad this, Droid that, sheesh.”

Sheesh? Who says that anymore?

Still, I like his gumption in using it! Thus, Shaw–who is an active blogger and Twitter poster–is apparently mad as heck and not going to take it anymore!

Here’s the blog post below, followed by the internal email Shaw sent (apparently inspired by the landscape at our eighth D: All Things Digital conference earlier this month):

Microsoft by the numbers

25 Jun 2010 12:30 PM

You probably saw the news this week that we’ve sold 150 million Windows 7 licenses in 8 months. That’s more than 600,000 per day. And, perhaps fittingly for a product called Windows 7, it adds up to 7 copies every second of every day since launch.

As a communications guy, I’m generally most comfortable with words. But since Microsoft is a pretty numbers-driven company, the Windows 7 milestone got me thinking about some *other* numbers, too.

Of course, numbers are only one dimension of a story. And we live in a hyper-competitive industry, with loads of challenges to go along with loads of opportunity. All the same, with Windows 7, Office 2010, Bing, Xbox 360, Kinect, Windows Phone 7, our cloud platform, and many other products, services and happy customers, 2010 is shaping up as a huge year for us.

So, without further ado, a few of my favorite numbers:

1

150,000,000
Number of Windows 7 licenses sold, making Windows 7 by far the fastest growing operating system in history.[source]

2

7.1 million
Projected iPad sales for 2010. [source]

58 million
Projected netbook sales in 2010. [source]

355 million
Projected PC sales in 2010. [source]

3

>10
Percentage of US netbooks running Windows in 2008. [source]

96
Percentage of US netbooks running Windows in 2009. [source]

4

0
Number of paying customers running on Windows Azure in November 2009.

10,000
Number of paying customers running on Windows Azure in June 2010. [source]

700,000
Number of students, teachers and staff using Microsoft’s cloud productivity tools in Kentucky public schools, the largest cloud deployment in the US. [source]

5

16 million
Total subscribers to largest 25 US daily newspapers. [source]

14 Million
Total number of Netflix subscribers. [source]

23 million
Total number of Xbox Live subscribers. [source]

6

9,000,000
Number of customer downloads of the Office 2010 beta prior to launch, the largest Microsoft beta program in history. [source]

7

21.4 million
Number of new Bing search users in one year. [Comscore report--requires subscription]

8

24%
Linux Server market share in 2005. [source]

33%
Predicted Linux Server market share for 2007 (made in 2005). [source]

21.2%
Actual Linux Server market share, Q4 2009. [source]

9

8.8 million
Global iPhone sales in Q1 2010. [source]

21.5 million
Nokia smartphone sales in Q1 2010. [source]

55 million
Total smartphone sales globally in Q1 2010. [source]

439 million
Projected global smartphone sales in 2014. [source]

10

9
Number of years it took Salesforce.com to reach 1 million paid user milestone. [source]

6
Number of years it took Microsoft Dynamics to reach 1 million paid user milestone. [source]

100%
Percent chance that Salesforce.com CEO will mention Microsoft in a speech, panel, interview, or blog post.

11

173 million
Global Gmail users. [source]

284 million
Global Yahoo! Mail users.[source]

360 million
Global Windows Live Mail users.[source]

299 million
Active Windows Live Messenger Accounts worldwide. [Comscore MyMetrix, WW, March 2010--requires subscription]

1
Rank of Windows Live Messenger globally compared to all other instant messaging services. [Comscore MyMetrix, WW, March 2010 - requires subscription]

12

$5.7 Billion
Apple Net income for fiscal year ending Sep 2009. [source]

$6.5 Billion
Google Net income for fiscal year ending Dec 2009. [source]

$14.5 Billion
Microsoft Net Income for fiscal year ending June 2009. [source]

$23.0 billion
Total Microsoft revenue, FY2000. [source]

$58.4 billion
Total Microsoft revenue, FY2009. [source]

fxs

It has been a rough couple of weeks for us from a coverage standpoint. It seems like every time I turn on the computer, or talk to a reporter, or pick up a publication at home, or do a scan of my RSS feeds or Twitter client that I see more stories and opinions about the challenges we have, and how great some of our competitors are doing. iPad this, Droid that, sheesh. Even BusinessWeek got into the act, taking some unfair shots at Natal under the guise of looking at our consumer strategy all up. Man, when someone is beating on Natal prior to E3, you can bet we’ve got momentum against us.

Sitting there at the All Things Digital conference last week and hearing from our competitors really got me thinking, though. What is our differentiation? Why do we make certain decisions? What drives the way we think about business and technology? The morning after the Steve Jobs q&a (which everyone should watch), I dragged myself out of bed to go for a run. As I’d driven into the hotel, I noticed with a sinking feeling that there were lots of hills. I asked the desk clerk if they had a jogging map. They did not. I asked if he could point me a direction that did not have a bunch of hills. He laughed and pointed “up” the driveway and said that if I turned left there would be a nice running path. “I drove in that direction,” I said. “Seems like it’s uphill.” He shrugged, and away I went. Up.

And to keep my mind off the elevation gain, I was thinking about that previous question–what drives Microsoft? Coming up the second hill, I got it. Fundamentally, we believe that we have the opportunity to make life better for billions of people around the world through our products and services. Not millions, not tens of millions, but billions. We started with the idea of a computer on every desktop, and even though the computer looks a lot different today than it did those years, and even though the developed world probably does have a computer on every desk, there are still billions more to go, and we are going to get there. And when you start thinking about serving billions, which we do, we’re playing a game that nobody else in the industry is. I don’t know about you, but I come to work thinking about what I can do to help w/ that big goal. And it’s not all altruism and unicorns, when we do a great job of creating products that make life better for billions, it makes us better as a company, we sell more, we learn more, our partners do better, we do better. And when you have big dreams and big ambitions (like we do) and when you set the bar high (which we do) then sometimes we don’t get over the bar. There are people in the world that see that and call it failure; but failing to hit the mark doesn’t mean quitting. That’s part of our culture, too.

The run back to the hotel was easier. I even scrambled up a bluff next to the path (imagining the theme to “Rocky” in my head) and stood looking out over the Pacific for a bit. And I thought about our challenges, internal and external. External is easy. Internal is harder.

There is a saying I’ve heard a bunch since I’ve been at Microsoft: “Hope is not a strategy.” Heck, I’ve used it myself, and felt pretty superior while saying it, since I was talking about something I didn’t really own. But standing on the bluff, I wondered.

In my last mail, I referenced the need for us all to be comfortable in the gap between what is and what we desire to create. If we simply live in what we have, we become cynics. And if hope is not a strategy, then neither is cynicism, and we have lots of cynics among us. It is a challenge, especially for those of us who help tell our story. I often see it used, and use it myself, to cover up the pain of not meeting a goal, or seeing a product/service be ill-received by the market. If I am able to mock and sneer, then nobody outside the company can make me feel worse at setbacks and even failures.

As the evangelists for the company, we must guard against this. Hope can’t be a strategy, but it (and its cousin belief) is a needed ingredient in any success. Think about this for a bit. Each and every one of us needs to be grounded in our challenges and our wins. Right now, we are massively over-indexed in thinking and knowing about our losses and challenges. But what of our wins?

At the conference later that day, I had a chance to engage in a spirited and mostly friendly discussion with some folks who thought we were doing a crap job all up. Stock price flat, no iPad, etc. Instead of shrugging and agreeing, I talked about our wins and our momentum. We’ve built a huge server business over the last decade, something else nobody has done. Windows 7 sales are up about 39 percent year over year, against a huge base. Office 2010 beta largest ever, Office is in the cloud. Bing is one year old, 4 points of market share–nobody has grown search market share against Google but we are doing it. They are copying our look, our home page. New Hotmail is driving them to offer something other than threaded email for Gmail. Xbox Live has 23 million users–again, only two companies in the last decade have built subscription services like this (Netflix is the other). Windows Azure has 10,000 paying customers, we just announced 700k deployment of live@edu, probably the largest cloud deployment in the world. Natal is coming, it’s cool. Yes, we want to (and will) do better in phones. Yes, we want to (and will) have more cool thin slate/tablet/other form factor devices that run Windows. I’ll tell you, while I don’t think I created any true believers, I did force people to think differently about Microsoft and what we’re doing, and I call that a win.

This is our job. We don’t just represent the products and services we work on, we represent the company all up. Be ready to tell that story. Tell it to your co-workers here at Microsoft, to your family and friends, to members of the media. They know about our challenges, they don’t know about our wins and momentum. So tell them.

fxs