Google hot on Skydrive's heels

For computer users, the new service will make it easier for them to store and access data online by avoiding dependence on a single hard drive, the Wall Street Journal reported, citing people familiar with the matter. The product, which has been previously rumored, will also go up against similar services.

Microsoft currently offers a public beta online storage service called Windows Live SkyDrive. The service is currently limited to 1 GB of free storage. Apple upgraded its Mac service to include 10 GB for $100 per year. Yahoo offers a service called Briefcase. Other sites include Box.net, Mozy and Mediamax.

Google itself offers free storage with applications, 1GB for Picasa Web Albums and over 5.3GB for its email website, Gmail. Google believes it can distinguish itself by creating a user interface that's user-friendly compared to other similar services, the Journal said.