Microsoft released a beta of two new web-based applications for storing and sharing photos and files -- Live Photo Gallery and Live Photo Folder.

Live Photo Gallery allows people to easily sharing, editing, organising and printing of photos and digital home videos stored on their computers.

Windows Live Folders provides 500MB free Microsoft's online storage service, aiming to make it easier to share and control access to files stored online.

The effort represents Microsoft's broad ambition in a growing area of the software industry.

"It's a competitive advantage for us because while some companies offer just one or the other, offering software and services together makes for a stronger customer experience," said Chris Jones Tuesday, corporate vice president, Windows Live experience program management at Microsoft.

Jones said Microsoft dominant position in the software market is an advantage over web-only service providers, such as its top rivals Google and Yahoo.

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