Google is expected to launch a cloud based music service at the end of the year according to rumours doing the rounds on the Internet.

The rumours have started thanks to an interview in Israeli financial newspaper Calcalist with Android's product manager Gaurav Jain, reports

According to the paper, Gaurav has revealed that mobile will play a huge part in Google's music strategy right from the beginning.

Jain also confirms for the first time that Google's music service will launch alongside the next version of its mobile operating system - Android 3.0, code-named Gingerbread - in time for the holidays this year, Calcalist reports.

The rumours come as Apple is also rumoured to be moving its iTunes music service into the cloud, requiring people not to have to download the tracks to a specific device like their iPhone or iPod.

Both rumours follow acquisitions of music delivery companies by both companies in recent months. Apple bought and has yet to do anything with Lala, while Google bought Simplify Media.

Could music be about to move away from local storage to cloud based services, perhaps by the end of the year? Let us know what you think in the comments below.