Microsoft to rename cloud storage service SkyDrive to “One Drive”

Microsoft's cloud storage service will be rebranded ''One Drive'' after British broadcaster BSkyB objected to the earlier name "SkyDrive."

A settlement was reached by the two sides last July for an undisclosed sum, after the British Sky Broadcasting Group PLC won an initial case in a British court against Microsoft's usage of SkyDrive as Sky Broadcasting Group holds a trademark for the name in Britain.

Under the terms of the agreement, Microsoft was given "a reasonable period of time to allow for an orderly transition to a new brand".

Microsoft, though has not said when exactly OneDrive would fully replace SkyDrive as the name of the service, but currently maintains that OneDrive brand was "coming soon".

According to commentators, while the rebranding would not change the service's logo - two blue clouds on a white background – it would align the name with other company brands.

Last July the software giant reorganised its corporate structure in a strategy called ''One Microsoft'', aimed at providing both devices and services.

The company's latest game console, which released in November, is called "Xbox One."

Meanwhile, the company's fiscal second quarter results beat Wall Street expectations as it sold 3.9 million Xbox One consoles to retailers and doubled revenue from its line of Surface tablets from a quarter earlier.

Net income in the quarter through December was up at $6.56 billion, or 78 cents per share, as against $6.38 billion, or 76 cents per share, a year ago (See: Microsoft posts better-than- expected results for fiscal 2Q).

Microsoft unveiled the new name yesterday in the US, saying OneDrive conveyed the mission of the service, which was to let users access their important files from many devices by storing them all in one location.

"We know that increasingly you will have many devices in your life, but you really want only one place for your most important stuff," the company wrote in a blog post. "We believe the new OneDrive name conveys the value we can deliver for you and best represents our vision for the future."