Sadly, though, Microsoft is also using this update to reduce the amount of free storage it offers to new users from 25GB to 7GB. Why this odd number? Microsoft says that just 0.06% of current SkyDrive users use more than 7GB. If you already have a SkyDrive account, you can get grandfathered into the old plan. Existing users who already use more than 4GB os storage space on SkyDrive will be automatically upgraded to 25GB for free, but if you currently use less, you will have to do so manually.

New users will be able to buy more storage, of course. Paid plans start at a relatively affordable $10/year for 20GB and go up to $50/year for 100GB. Microsoft calls this a “more flexible approach” and says that it wants to offer a gimmick-free service that strikes the right balance of being free for the vast majority of customers, and low-priced for those who want more.”