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Xdrive Desktop Lite is based on Adobe's AIR technology, also introduced today, and combines a desktop client for drag-and-drop uploading and organising of files with secure remote storage.

It can also be combined with other online services that are built using Xdrive's public APIs. Users of the Bluestring

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storage service, for example, will also be able to access files stored in an Xdrive account.

"By deploying this application on Adobe AIR, we have drastically reduced the amount of time it takes to upload a file, and implemented simple drag-and-drop technology to ensure that people can easily transfer their files to Xdrive no matter where they reside originally - on the desktop, a hard drive or even a camera's memory card," says David Liu, senior vice president of Social Media, Messaging and Homepages at AOL.

"With Xdrive Desktop Lite, we're eliminating the barriers to storing digital media and files online by creating simpler, easier-to-use desktop software that allows consumers to upload and store all of their assets in one place."

The announcement follows that of Microsoft, which last week opened its online storage service, Windows Live SkyDrive, which also offers 5GB of free storage.