Omar Shahine has the details:
Well, we launched Kahuna Milestone 3 (M3) yesterday with a new URL (http://mail.start.com). We are building Kahuna iteratively, and plan on releasing much goodness on a frequent basis. This is very different from the way that Hotmail and MSN has typically released software, but we feel it’s the best way to achieve success.
M3 is also the first milestone where I’ve been the release PM. Our previous milestone, M2, was developed in the traditional Microsoft fashion: spec, develop, test. It was a rather longish milestone, but was appropriate for the task at hand (we were building many things from scratch, so there was nothing to iterate on). When we shipped M2, we had most of the basics working well, and we could start to iterate, add features, scale.
I described some of this in our Kahuna video on Channel 9, but we borrowed heavily from Scrum. Myself and our dev manager, Dick Craddock, spent a fair amount of time refining and implementing a process that we refer to as Modified Scrum. We took the things we liked about Scrum, and tossed the stuff we didn’t. We basically made Scrum work for our needs, and left the waterfall model behind.
Hat Tip: Dare Obasanjo who has been using the beta and has a screenshot. He also notes: