[KeyBoardG]

I would say Windows Mesh is more a competitor than SkyDrive because its folder sync and online storage capacity. Neither are getting anywhere near as much traction as DropBox, but it would do MS good to merge these services asap.

Threat? No. An perfectly viable alternative? Certainly.

[davux]

That's exactly what they've done. Mesh became the SkyDrive desktop app. It lets you get remote access to your PC (either files or remote desktop), as well as sync with the cloud.

[KeyBoardG]

I'm home now running both the SkyDrive app and the LiveMesh app which itself has cloud storage. I think MS needs to clear things up as both services have serious overlap and will cause consumer confusion... even if that mean removing cloud storage from Mesh. As it is now, users can choose to have LiveMesh needlessly sync the local SkyDrive folder.

Mesh has a nice interface with baked in sync scenarios such as browser favorites and office settings. The quick and easy remote desktop is a good touch as well.