A number of news outlets are speculating that Google is working on the online storage that will make cloud computing a reality. According to the Guardian:
"Google is to launch a service that would enable users to access their personal computer from any internet connection, according to industry reports. But campaigners warn that it would give the online behemoth unprecedented control over individuals' personal data.
The Google Drive, or "GDrive", could kill off the desktop computer, which relies on a powerful hard drive. Instead a user's personal files and operating system could be stored on Google's own servers and accessed via the internet."
Microsoft's SkyDrive offers 25GB (yes that's GB) - FREE!
Microsoft's SkyDrive service offers 25GB of storage and is available now! The only limitation is that upload file size is limited to 50MB each. But it is still free storage that can be used to backup your pictures and other files. Check it out.
These services would work great with TrueCrypt which is the best encryption utility available. You can encrypt your files and then upload them to online storage for a backup!