Hosted business mail service

Small-and medium-sized businesses are the hot target markets right now, whether it’s voice and broadband or web services. The biggest opportunity, however, seems to be in hosted email, as Yahoo’s (YHOO) $350 million bet on Zimbra and Google’s (GOOG) Apps initiative demonstrate. Rackspace, a San Antonio, Tex.-based managed hosting company, today made its own move to tap the opportunity by acquiring eight-year-old Webmail.us of Blacksberg, Va. ***