Microsoft has announced its plan to increase the free email storage limit of Windows Live Hotmail from 2GB to 5GB, exceeding Google Mail’s 2.8 GB limit. Moreover, paid users will get 10 GB storage limit for annual subscription of $14.99.

In Windows Live blog, Microsoft program manager Ellie Powers-Boyle cited many changes including mail retention changes, support for Arabic and Hebrew languages, automatic replies when your on vacation, and flexibility to turn off the MSN news page.

Still, the downside lies in the inability of free users to forward mails from their Hotmail account to other accounts. Only paid subscribers have this power.

Evidently, Microsoft is trying hard to please their current subscribers. However, I don’t think these changes can help build bigger customer base and motivate Google and Yahoo! Mail users to switch. After all, Yahoo! is currently offering unlimited storage.

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