We continue to see that the primary way customers are syncing files is between their different PCs (or Macs). And we will continue to make it easy to sync virtually unlimited amounts of data between your PCs. When syncing files to the cloud, beta participants get 2 GB of synced cloud storage. Only 2% of these participants are using more than 1.5 GB. However, Live Mesh offers 5 GB, and while only a small number of Live Mesh customers use all their space, we want to ease migration and increase the online storage limit from 2 GB to 5 GB.

A number of customers have asked why we don't allow you to sync up to 25 GB, given that 25 GB is the SkyDrive limit. While we merged Sync and Live Mesh in this release, we did not merge the online storage system used for Live Mesh with the one used for Office or Photos on SkyDrive. This means that each system has different storage limits and is optimized for different scenarios.

SkyDrive offers enough storage for you to share documents and photos with friends, family, and co-workers. Hotmail offers enough storage for you to store your email, calendar, and contacts. Windows Live Mesh lets you sync all your files and folders across your PCs and devices, and provides enough cloud storage for your most important files. Over time, we'll be considering ways to do even more to share information across these systems.