25Gb of free online storage, It's great! I make good use of it. Having said this it's important to realize why I like SkyDrive so much.
As a starting point it's important to know that I use several different computers to work with. Privately I prefer my Mac, but unfortunately my work environment still has some applications that require Windows. Further I also travel regularly and often I don't take a computer along and rely on public accessible machine. SkyDrive allows me to access all my files from any place at any time.
Over the years I've build an extensive library of presentations. I don't use the old presentations a lot, but regularly I do need some historical slides. SkyDrive allows me to store the full history of presentations, while I don't need to carry them around.
This is all great....
However, the usability of SkyDrive is not that great. SkyDrive is only accessible over the web and that is also the biggest limitation. The web site works but isn't very advanced when searching and sorting through the 25Gb of documents. Uploading of documents is cumber stone and for easy bulk upload Internet Explorer is required, other browsers can only upload 5 documents at a time.
Wouldn't it be great if Microsoft would apply their own Software + Services strategy. It shouldn't be too difficult to have a 'My SkyDrive' folder in the Windows Explorer or a device in the Mac Finder to really easily access the files as if it was a normal file system.
I do realize that there are also 'synchronization' services like Live Sync and DropBox that synchronize files between different computers, but that is NOT what I want to achieve. I just want 1 copy of the files stored in the cloud, easy accessible and nothing stored at the local machine. Laptops get stolen, break down and unfortunately require very frequent reinstalls. I believe in very clear separation between software and the data storage.