BobPaul writes "Following behind Yahoo Mail's recent upgrade to 100MB of free storage, and trailing behind GMail's 1GB (last mentioned here), ZDNet reports that Hotmail will soon boost email storage as well. 'The upgrade will increase Hotmail's free e-mail storage limits from 2 megabytes to 250MB and its paid e-mail service, which costs $19.95 a year, from 10MB to 2 gigabytes. The changes will begin in early July.' Another interesting tidbit from the article: 'Ask Jeeves also plans to grant its e-mail subscribers more storage room... According to an e-mail sent to iWon users, Ask Jeeves plans to give each of the sites' e-mail subscribers 125MB of free storage.'"