Although it's a little late to the game, Microsoft's free hosted storage service entered the market with a lot of noise. After all, the company is giving 5GB of storage away for free to any Tom, Dick or Sally and consumers are ready to gobble up that storage.
But, is there anything new here? Other service providers have been giving away free hosted storage for some time now, and many more vendors are offering larger capacities and advanced backup add-ons for just a few bucks per month.
The big difference here is that Microsoft really isn't talking about hosted storage per se, but is focusing more on the collaboration aspect of Skydrive. Of course users can save files and data to their own encrypted folders located on a Skydrive, but the bigger picture here is how easy it is to share those files with others by creating shared folders.