It has been long rumored that Google has a plan to provide an online storage service called GDrive. Last month's announcement that you can upload (almost) any file of upto 1GB, brings a long standing expectation to fruition in a way.
Although the free total storage limit of 1GB pales in comparision to Microsoft Sydrive's limit of a whooping 25GB, it's noteworthy that Google Docs allows very large files of upto 1GB size to be uploaded at one go. Skydrive limits the maximum size per file to 50MB.
The above mentioned announcement also casually uses the word cloud (note the lower-case "c") in the title of the post as if the technology was already ubiqutous. The Cloud is probably what makes this scheme feasible. Folks needing storage beyond the free quota of 1GB can purchase storage for $0.25 per GB per year.
I guess we can expect the Cloud vendor wars to get hotter this year.
Also see -
Say Goodbye to Privacy
Google Docs Spreadsheet Size Limits