You can create/delete folders and upload all types of files. Some file types, such as images, can be viewed directly from the web without needing to download them.
Folders can be private or public. If you make a file public, you can share it with others without the need for them to have a Windows Live Hotmail account. Also, you can decide who can view the contents of each file by giving individual permissions to your Windows Live contacts.
Hosting files on SkyDrive can be a good idea for those who have little disk space or want to share files over the Internet.
The free SkyDrive account allows for up to 25GB of storage.