MUMBAI: Microsoft has added a downloadable photo sharing and a web-based file sharing service on its Windows Live application suite and has announced plans to launch more offerings this year as part of its internet strategy.

With the bid to take on competitors Google Inc. and Yahoo Inc. using its ‘software plus services‘ strategy, it aims to leverage its dominant market position for software running on the computer to a new suite of services delivered over the internet.

Microsoft already offers over a dozen online services in beta version including e-mail and Web search under its Windows Live brand. According to the latest announcement, it will introduce test versions of two new free services: Windows Live Folders and Windows Live Photo Gallery.

Windows Live Photo Gallery is the new version of the photo application operating systems, Windows XP and Windows Vista. It simplifies photo sharing on their Windows Live Spaces site, Microsoft‘s social networking platform.

Windows Live folders will provide up to 500 MB of online storage in US in a limited test release. Usage will be gauged during the test release and it will add more capacity if required. Users can share documents using these folders but not necesasarily back-up their hard-drive.

Meanwhile, Google still remains mum on its plans for an online storage device. However, they already offer services that provide exhaustive data storage, including Gmail and Docs and Spreadsheets.