Microsoft will soon be upgrading Office Live Workspace accounts to Windows Live SkyDrive accounts, the company has announced in a blog post and an email (screenshot below).
Office Live Workspace users will get many of the same capabilities they’re used to, plus a number of new features (e.g. the Office Web Apps, Web-based ‘companions’ to the software giant’s most popular business software products, expected to roll out on June 15th in conjunction with Office 2010) and up to 25 GB of storage space.
Microsoft didn’t provide a solid timestamp for when the automatic upgrade will occur, only saying that it will come in the ‘coming months’, and that it will be opt-in. Users needn’t do a thing, Sam Sengupta, Principal Group Manager, Office Live Workspace adds, as all workspaces, documents, and related sharing permissions will be available directly within SkyDrive.
If you use the same Windows Live ID to sign into SkyDrive as you do to sign into Office Live Workspace, your documents will be moved into the same account. Office Live Small Business account owners will not be affected by the upgrade of Office Live Workspace to SkyDrive.
More in the FAQ on the topic.
(Thanks for the tip, Ian Patrick)

SkyDrive is a password-protected online file storage provided by Microsoft. Users sign in to SkyDrive by using their Windows Live IDs. For each user, Microsoft provides 25 GB of free online storage. In SkyDrive, users can create personal, shared, and public folders and they can decide who can access to each folder. When users create a shared folder, their friends need to sign in with their own Windows Live IDs and passwords. ...
Microsoft, founded in 1975 by Bill Gates and Paul Allen, is a veteran software company, best known for its Microsoft Windows operating system and the Microsoft Office suite of productivity software. Starting in 1980 Microsoft formed a partnership with IBM allowing Microsoft to sell its software package with the computers IBM manufactured. Microsoft is widely used by professionals worldwide and largely dominates the American corporate market. Additionally, the company has ventured into hardware with consumer products such as the Zune and...
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