This service offers Android users to save the music they purchase on the Android store for free on Amazon's cloud and even save their existing music collection online and pay a nominal fee for additional storage (up to 1TB) over 5GB.
For early adopters Amazon is offering 20GB of storage free for a year if you buy an album through the Amazon MP3 store.
What does this mean for the competitors? With Android getting another huge boost forward, and Microsoft's Windows Phone 7 falls further behind, unless they allow storage and streaming from their skydrive which has upto 25GB of free storage. Apple iPhone users will have to wait for Apple's MobileMe announcement to know their options.
I also cant help wonder what this can do for Amazon. Would the company continue to support Android or think about upgrading their Kindle to support music playback soon.