"Instead of emailing files to yourself, which is particularly difficult with large files, you can upload to Google Docs any file up to 250 MB. You'll have 1 GB of free storage for files you don't convert into one of the Google Docs formats (i.e. Google documents, spreadsheets, and presentations), and if you need more space, you can buy additional storage for $0.25 per GB per year," mentions Google Docs blog.
The update will be slowly rolled out in the coming days and it's the next step in the evolution of Google's online office suite. When Google added support for PDF files in 2008, it became clear that Google Docs will let you upload any kind of file.
Google says that the service will be able to open many common file formats. "You can search for document files you've uploaded or that have been shared with you just like you do with your Google documents, spreadsheets, presentations, and PDFs. And you'll be able to view many common document file types with the Google Docs viewer."
Google Docs has the potential to become a great service for online storage, but it won't succeed if it only includes 1 GB of free storage. Microsoft's SkyDrive offers 25 GB of free storage, while ADrive offers 50 GB of free storage. Even Gmail has more free storage than Google Docs and its main purpose is not storing files.
{ Thanks, Myron and Norman. }