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)