The software maker purchased the FolderShare service from Austin, Texas-based ByteTaxi. Financial details of the deal were not announced.
The technology offers an alternate way to send large files that are too big to be easily e-mailed.
Windows Live is a collection of online services, most of which will be free and supported by advertising, Microsoft said. Many are rebranded versions of existing MSN services.
"Our mission for Windows Live is to enable customers to easily find the information, pursue the interests and deepen the relationships that enrich their lives," Microsoft Vice President Blake Irving said in a statement. "FolderShare technology will help customers access their information anytime, anywhere and on multiple devices, unifying their overall experience."
Microsoft showed off a similar technology as part of its Windows Live demonstration on Tuesday.
