Microsoft archrival Google is developing similar technology, code-named Gdrive, according to information Google accidentally shared with analysts in early March.
Googles Gdrive solution is expected to provide both consumers and business customers with an unlimited amount of online storage for their data.
Google has declined to provide further specifics or a timetable for its planned Gdrive rollout.
According to sources, Google is working two other storage-related services: GDS and Lighthouse.
All three projects are focused on delivering "infinite storage" and "infinite bandwidth," according to slides Google shared with analysts.
Microsoft, likewise, has shared few specifics about Live Drive. Microsoft Chief Technology Officer Ray Ozzie publicly acknowledged Microsofts Live Drive plans in an interview with Fortune Magazine published on April 19.
"Microsoft is planning to use its server farms to offer anyone huge amounts of online storage of digital data," according to Fortune.
"With Live Drive, all your information—movies, music, tax information, a high-definition videoconference you had with your grandmother, whatever—could be accessible from anywhere, on any device."