If you have a hotmail account I think you will automatically have an MS SkyDrive account as well. 25gb of free space is not to be sniffed at. I have recently started using it to backup photos and other bits and pieces using http://www.gladinet.com/ to monitor my source directories and upload them. The downsides are is if you are uploading a large amount it is pretty slow, my initial backup I left overnight, performance obviously depends on the speed of your connection. I think there is also a 50mb files size limit as well.
Gladinet will also connect to different 'clouds' so it could give you pointer to an online storage area that might fit your needs.