When Gmail launched five years ago, it came with a gigabyte of storage space. A gigabyte doesn't seem like very much any more, and now every Gmail account comes with more than seven gigs of space (and growing). Still, some people manage to use up all of this (that's a lot of email...), so for over two years we've offered the option to purchase even more storage. This extra storage acts as an overflow that you only start using when you reach the limit of your free storage, and is shared for use between Gmail and Picasa Web Albums. Picasa has always come with a gigabyte of free storage to share photos, but people need even more storage as they start taking more pictures and moving full resolution backups of their photo collection into the cloud.
While storage costs have been dropping naturally, we've also been working hard to improve our infrastructure to reduce costs even further. Today, we're dramatically lowering our prices to make extra storage more affordable. You can now buy 20 GB for only $5 a year, twice as much storage for a quarter of the old price, and enough space for more than 10,000 full resolution pictures taken with a five megapixel camera. And if you need more than 20 GB, you can purchase up to 16 terabytes!
So if you're running out of space in your overflowing inbox, or want to keep full resolution copies of thousands of photos, visit www.google.com/accounts/PurchaseStorage to see all the plans and to buy more storage.
Source: http://gmailblog.blogspot.com/2009/11/more-extra-storage-for-less.html
