Google users will soon be able to upload any file type to Docs (as long as it's under 250MB)—as opposed to the very limited slate of document types currently supported (like images, Word docs, PDFs, spreadsheets, and PowerPoint presentations).
Photo from TechCrunch
Because Google Docs now supports files up to 250 MB in size, which is larger than the attachment limit on most email applications, you'll be able to backup large graphics files, RAW photos, ZIP archives and much more to the cloud. More importantly, instead of carrying a USB drive, you can now use Google Docs as a more convenient option for accessing your files on different computers.
Tech news blog TechCrunch quotes Google Docs product manager Vijay Bangaru emphasizing that this is not the much speculated GDrive, but they appropriately point out that—regardless of what they're calling it—it sure sounds like the GDrive people were expecting. Users will get 1GB of free storage to hold whatever they want, and they can buy more storage space for $0.25 per GB.
Upload your files and access them anywhere with Google Docs [Official Google Blog]