Hotmail only recently announced changes to its Hotmail services with the launch of Windows Live Hotmail back in May, but some more updates have now been revealed.

The biggest change is that Windows Live Hotmail users will gradually see their amount of free storage increase from 2 to 5GB.

Google, who has always beaten Microsoft on the storage side of things since the launch of Gmail way back when, currently offers around 2.8GB of free storage.

Other updates are more tweaks than major changes, apparently as a result of listening to customer feedback since the service came out of Beta.

Performance is set to speed up, duped contacts will be flagged up and Hotmail's age old problem of spam is said to see improvements while email delivery reliability has also been addressed.

Microsoft recently opened "SkyFolders" Beta (previously known as Windows Live Folders) to the public. This service is described as a "personal hard drive on the Internet" and offers 500MB of free storage.