Looks like Microsoft has answered Yahoo's upgrade.
Microsoft boosts storage capacity in e-mail war
"SAN FRANCISCO, California (Reuters) -- Microsoft Corp. plans to give paying customers for its Hotmail e-mail service 2 gigabytes of storage and boost the size limits on free accounts, matching similar moves earlier this month by rival Yahoo Inc., the company said Wednesday.
Microsoft also said that it will roll out free e-mail and anti-virus protection to all the 170 million MSN Hotmail customers worldwide that will both scan and clean incoming and outgoing e-mail for viruses and worms before they can enter a customer's inbox.
The changes will start early in July, Redmond, Washington-based Microsoft said.
Yahoo earlier this month made good on a promise to boost the storage it provides to users of its e-mail service, raising the stakes in the e-mail war with Web search rival Google Inc. Google has announced plans for its Gmail service that gives users 1 gigabyte of free storage, far more than offered by Yahoo or Microsoft's e-mail services."
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