Early last week, Microsoft announced its updated online file storage service termed SkyDrive. The file storage service lets users create public, shared, and private folders for files that are for personal view, shared among a few users, and open to all.

Features of the storage service include:

  • 500 MB of storage space
  • Drag and drop to upload multiple files
  • Simple embedding of files from SkyDrive to other sources on the Web (like blogs)
  • A history view of other SkyDrive folders you visited recently

Read more on the features from this blog entry at Wired.

While the idea of online storage is in vogue, the storage space cap is a limitation. Also, while Microsoft clearly made a bold move to take on its competitors in the Webmail space, a similar initiative is missing at the online storage front. Also, there is the need for a integrated centralized service, as mentioned in this article at InformationWeek, rather than separate storages for mail, images, files, etc.

Share your thoughts on the new service and whether Microsoft’s service be able to lure new customers?