Microsoft Live Drive and the burgeoning online storage market

Microsoft is building an online storage service, code named Live Drive, says Ray Ozzie in an interview with Fortune. Live Drive, and the similarly named Google Drive, are both designed to basically deliver huge amounts of personal online storage, available from anywhere on the net. Google's service is slated for 2007 delivery, and Microsoft's schedule is unknown. Of course, this technology isn't new. There are a number of companies already ahead of this curve, including Apple with its .Mac/iDisk solution and Amazon with S3. Much closer to home: Seattle-based Punch Networks launched similar services in conjunction with Excite way back in 1999 (Yahoo also launched a similar service back then called Briefcase). The Punch service is still available via the Punch Networks website. Of course, once these companies made their announcements, the VCs came rushing in to finance (xDrive 10/99, iDrive 10/99, SwapDrive 11/99 and the list goes on). More recently Seattle-based Deep9 acquired Punch Networks, and is planning to announce new services based upon Punch's proven code-base later this year. With major players and startups both readying announcements for the next 12 months, it looks like this might be a segment that is poised to take off again. Can the VC announcements be far behind?

-posted by Paul