The company said Gmail will give customers a full gigabyte of free email storage, pretty much blowing away the capacity of competing services including Yahoo! Mail (4MB) and Microsoft Corp’s Hotmail (2MB).

The service will generate revenue by placing sponsored links that are determined to be relevant to the context of the email the user receives. Receive a lot of sports-related emails? Get sports-related text ads next to your inbox.

Users will also be able to search their email using Google’s search technology. The company said it is also working on spam filtering systems. The firm said the service is currently in beta, and there is no firm launch date.

Webmail is merely the latest of a series of product introductions that broaden Google’s business from search. Notably, the company recently increased the profile of its Froogle product comparison service.

This article is based on material originally published by ComputerWire