OneDrive allows the user to take automatic backup of photos and videos. The company has also rolled plenty of new features in this upgrade. After the launch, Microsoft is giving the first 100,000 customers who access their OneDrive account an additional 100 GB of complimentary storage for one year.

"When someone picks up their phone, tablet or any other device, they just want all of their favorite photos and the documents they need at their fingertips — they don't want to have to hunt for them," said Chris Jones, corporate vice president, OS Services, Microsoft.

OneDrive is free for customers up to the first 7 GB of storage; customers also have the option to purchase storage in 50GB, 100GB and 200GB increments. Current customers will be able to use their existing SkyDrive credentials to access their files in OneDrive.

Customers can also receive 3 GB of free storage by utilizing the camera backup feature.