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In a bid to out-google google, Yahoo has announced free unlimited email storage to all users starting from May 2007. Yahoo Mail currently offers 1GB storage per account and charges $20/year for a 2GB account.

With this announcement Yahoo mail now surpasses GMail´s 2.8GB+ and Live Mail´s 2GB storage limit by an unlimited margin. Yahoo mail came into existence as RocketMail (which offered 2MB storage limit) almost a decade ago. Yahoo acquired RocketMail in 1997 and relaunched it as Yahoo Mail (storage got doubled to 4MB) in 1997.

Users will be subject to Yahoo´s abuse policy and wont be abuse this storage as some sort of an online databack up store. Customers who have paid $20/year for premium accounts can get their money refunded.

I for one still prefer Gmail because its lightening fast, however Gmail sometimes annoys me a lot by outages. All in all I guess a little competition is good for users. Judging by this announcement I could safely say that Yahoo Mail team means business so stay tuned guys.

Also see Techcrunch and CenterNetworks.