Microsoft gives each user 5Gb of free space to store data online. There are a couple of advantages to this. First, you can access the data from anywhere with Web access. Rather than carrying sensitive data on USB flash drives when you travel, you can store the data online and access it from your destination. Second, you can share the data with others and use it as a file transfer or collaboration tool.
Office Live Workspace can also represent a form of secure off-site backup. Granted, 5Gb is not an unlimited amount of storage. You will still need to have a more complete backup solution as well. But, one of the weaknesses of backing up data locally is that a disaster such as a fire or flood can take out your data and your backup at the same time. With Office Live Workspace you can at least take your most important 5Gb of data and store it online where it will survive even when your data and your local backup are destroyed.
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