In April 2004, Google launched GMail, with a 1GB which made all of us shocked, while Yahoo Mail providing 100MB storage. This caused the huge popularity of GMail. So many people switched to GMail from Yahoo and MSN (including me). In fact Google came up with a nice concept of expanding the user's storage limit every second and showing it in GMail home page. Currently it shows 2833.807851 on my machine.
Yahoo Mail expanded in following fashion.
1997: 4MBBut I really don't think that people love GMail just because it provides 2GM+ storage, but because of the features that it provides. So while providing huge capacities, Yahoo Mail will have to provide great and new features to fight the battle. And also users (like me) are not looking for unlimited storage as it tends to become more harder to find some of the important mails from the millions of emails in the mail box. So better to come up with new useful features to win the battle.
2004: 100MB
2005: 1GB
2007: Unlimited storage
Now Yahoo Mail has announced the big event and it's up to them to keep their word. I don't think it'll be easy for them to provide infinite storage, as within 2-3 years the total storage requirement would be huge in number. They will have to come up with some strategy to limit the storage capacity for individual users.
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