Microsoft has announced that the Office Live Workspace will convert all existing accounts over to use Windows Live SkyDrive as a central storage area.

Here is what the email said:

Good news!

Your Microsoft Office Live Workspace beta account is about to become even better. You already know it’s a great way to store and share documents, and soon it will come together with Windows Live SkyDrive to become a great way to view, create, and edit documents from virtually anywhere.

In the coming months, you’ll receive notification when your Office Live Workspace account will be upgraded, along with further details. Until then, there’s no need for you to do anything.

With your SkyDrive account, you’ll get 25 GB of online storage for sharing both documents and photos. Your SkyDrive account is designed to work smoothly with other Windows Live services like Hotmail and Messenger. And you’ll be able to view and edit documents from virtually anywhere* using new Microsoft Office Web Apps.

Questions? Visit the Office Live Workspace upgrade center.

This really will integrate so many of the Windows live Essentials 2011 services and programs into others and create a central repository for any files you want to keep in the cloud that is Windows Live SkyDrive. Expect the different programs of the Live Essentials suite to have access to this central location as well..

This can become very handy as you move from desktop, to laptop, to work machine, and mobile devices etc. and need to access files your working on or sharing with others.