Google has just launch Google Drive, its much rumoured cloud storage service. Free Google Drive accounts get 5GB worth of Cloud Storage space but there are upgrade options of  25GB for $2.49 a month, 100GB for $4.99 a month, and 1TB will see users spend $49.99 monthly. Upgrading your Google Drive to a paid account will boost the available storage space on your GMail account to 25GB.

Before announcing the launch of the Google Drive, the company also made announcement where it upgraded free storage on Google to 10GB and Google Docs to 5GB.

Today, we’re happy to announce that we’re increasing everyone’s free storage in Gmail from 7.5 GB to 10 GB (and counting) to celebrate today’s launch of Google Drive. The increase will take effect over the next 24 hours. We hope you all enjoy the little bump!

The service has not been enabled for everyone. You need to check later or sign up on https://drive.google.com/start so that Google might alert you when your free Google Drive account would have been enabled.

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Google’s offer for 100GB at $4.99 is strong challenge to Dropbox which offers 50GB for $10 per month. Microsoft also offers 20-, 50-, or 100-Gbytes of its Sky Drive storage for $10 per year, $25 per year, or $50 per year.