I see this question asked all the time on the TechNet forums for SCSM.  What methods does Service Manager currently provide for notifications (new incidents, problems or changes)?

Well, here is your answer.  Currently there is only one notification channel in v1 of Service Manager, that notification channel is – SMTP (email).

Note that in future releases, or as part of Service Packs etc. we will see the addition of a few new notification channels: SIP (instant messaging), and SMS (text messaging) to name a few.

Additionally, there have been rumors as to advanced notifications and  interaction through Exchange and other Exchange related abilities.  For now this is only conjecture, but hold on tight while the connector for Exchange is completed and released to the Service Manager community.  More information to come on this when it hits the streets!