Microsoft has no qualms about diving headfirst into a budding market. It’ll happily bleed money just to make a product popular (it worked for the Xbox). Sure, SkyDrive doesn’t cost Microsoft anywhere near as much as developing the Xbox did, but as a free service, you can’t say you didn’t get your money’s worth.
To use SkyDrive, all you need is a Windows Live ID, which you most likely already have. From there, it’s a lot like Dropbox. You can manage your files via your web browser, or you can choose to sync up to 5GB directly with your PC. There’s also the option of downloading the mobile app (Windows Phone and iOS only for now – sorry Android users).
Unlike Dropbox, there’s no option to purchase more storage space; however, you do get a whopping 25GB to begin with. There is one huge limitation, though: files are limited to 100MB a piece. If it weren’t for that, SkyDrive would be one of the best file sharing options out there.
Instead, SkyDrive is mostly intended for personal use and document collaboration. Just like Google Docs, you can create and edit various document formats directly in your web browser, share them with friends or colleagues, and work on them simultaneously.
One of the best things about SkyDrive, though, are the servers backing it. You’ll almost always be able to max out your internet connection any time you download a file via SkyDrive, and the approximately 250kbps speed limit of free upload sites will feel like crawling through molasses.