You don't need any other programs to do this - Hotmail is already set up to do it for you.
1 Sign in to your Hotmail account and click "Hotmail" to access your email.
2 Click "Options," and then click "more options." Select "mobile alerts for new messages" under the category "”Reading email”
3 Add your phone number by clicking "sign up for Windows Live Mobile." Enter your phone number in the provided box, click that you agree to the service conditions and then click "Next." Hotmail will send a verification code in a text to your cell phone.
4 Enter the verification code into the provided box, and click "Next."
5 Select the box next to "Hotmail and Alerts," and click "Save." Hotmail will now send you a text when you receive new email.