Microsoft is doubling the amount of free storage that comes with its OneDrive accounts, up to 15GB from 7GB.

The increase will take place in July, and comes as the battle for cloud storage heats up. Apple recently announced it would slash prices for its paid iCloud accounts, and last week Amazon announced that Fire users will get unlimited storage for photos taken on the phone.

On the OneDrive blog, Omar Shahine, program manager at OnedDrive, said: "Our data tells us that 3 out of 4 people have less than 15 GB of files stored on their PC. Factoring in what they may also have stored on other devices, we believe providing 15 GB for free right out of the gate – with no hoops to jump through – will make it much easier for people to have their documents, videos, and photos available in one place."

Alongside this announcement, Microsoft also revealed that it will be bumping up the amount of storage subscribers to Office 365 Home and Office 265 Personal get. From 27GB, Microsoft will now give away 1TB.

Furthermore, Microsoft said it will drop storage prices by 70%. Shahine said: "Of course, we also want to give you as much flexibility as possible, so if you need more storage, but don’t need an Office 365 subscription, we will also still provide monthly subscription storage options – at dramatically reduced rates. The new monthly prices will be $1.99 for 100 GB (previously $7.49) and $3.99 for 200 GB (previously $11.49).

"All of these updates will take effect in the next month. For current subscribers, you are all set, you’ll automatically be moved to the lower prices."