Online Storage has definitely changed the way people store their files and in the past we have told you about several free online storage services that provide you with free online space starting from 1GB right up-to a whopping 50GB of free online storage space.

Microsoft too offers free online storage space in the form of Windows Live SkyDrive, earlier the maximum limit of storage space provided was 5GB, but they recently announced a significant increase in the free storage space boosting it to a whooping 25GB.

In addition to the additional storage space, they are also introducing some new features into the service, which include:

Better File Management

• Download photos directly to your Windows Live Photo Gallery.
• Download as a .zip file. Download an entire folder in one compressed file (initially available only in the United States, Denmark, and Ireland).
• Move files between folders.
• Copy files to multiple folders.

Better Photo Management

• Bigger thumbnails. We’ve increased the display size your photos throughout the site.
• Order prints. Order prints of your photos right from SkyDrive.
• A gorgeous online slide show. Works with any browser, but works even better if you have Microsoft Silverlight installed.
• People tags. Tag your friends and family.

Better Sharing Options

• Share your files and photos without requiring friends and family to use Windows Live ID
• Organize your contacts by category for easy repeat sharing, or share with your entire network or extended network.
• Share links to your favorite websites using Windows Live Toolbar. The links are stored on your SkyDrive.
• See what your friends have shared lately all in one place.

And several other new features. The new storage space has not yet been rolled out to all and users should start seeing the update storage space shortly.

Windows Live SkyDrive