Microsoft is one of the re-known IT brand of the world. Some people might have confusion what really is a Microsoft Account. Don’t be confused Microsoft Account is a new name that is used replacing ‘Windows Live ID‘.
A Microsoft Account is an login account which consists of a fully unique username and a desired password of the user, similarly like on other websites. With Microsoft Account users can sign in to other web products like hotmail, messenger, outlook e.t.c. If you don’t have your Microsoft Account, you can always create a new account for free so that you can use the services mentioned above. More information on Microsoft Account can be found here.
Direct Sign Up Link: https://signup.live.com/signup.aspx?wa=wsignin1.0&rpsnv=11&ct=1369732392&rver=6.1.6206.0&wp=MBI&wreply=http%3a%2f%2fmail.live.com%2fdefault.aspx&id=64855&cbcxt=mai&snsc=1&bk=1369732414&uiflavor=web&mkt=EN-US&lc=1033&lic=1
You will necessarily need an account in order to get reach to more features of hotmail.com or other related products from the same company.