Microsoft Corp. introduced two new online services to its Windows Live line-up on Tuesday and said it plans to release more Web offerings this year to beef up its Internet strategy.

Microsoft plans to take on Web competitors Google Inc. and Yahoo Inc. with its “software plus services” strategy, that aims to leverage its dominant market position for software running on the computer to a new suite of services delivered over the Internet.

Windows Live Photo Gallery is a new version of the photo application found on Microsoft’s two most recent operating systems, Windows XP and Windows Vista. It simplifies how people can share photos on their Windows Live Spaces site, Microsoft’s social networking platform.

The sharing feature of Microsoft’s new Photo Gallery is similar to how users can publish pictures from Apple Inc.’s iPhoto application to the company’s .Mac online service.

Windows Live Folders will provide up to 500 megabytes of online storage in the United States in a limited test release. Microsoft said it will gauge usage during the test release and possibly add more capacity if needed.

Microsoft sees Windows Live Folders as a way people can share documents, but not necessarily a place where users can back up all the files on a computer hard drive.