Hot on the heels of Yahoo spending a whopping $1.1 billion on Tumblr, the company has just released a huge update to Flickr. And to go along with the completely redesigned look and feel of the photo service, it is also greatly expanding the storage offered to users, up to a whopping one terabyte.

Yahoo was quick to point out that no other service offers this much free storage. That's enough to store over 500,000 pictures, so even the biggest photography junkies will be hard pressed to actually fill all that space.

Flickr's user interface is much more visual after yesterday's tweak, with a redesigned grid layout and fewer text to keep the focus on images. Overall it makes for a more pleasant experience. Each photo has handy share buttons where users can post them to their favorite social networks, newly purchased Tumblr included.

There's also a new slideshow feature that displays the most spectacular Flickr photos from any user in full-screen, which will help people kill time and do some exploring.

Aside from a visual refresh on desktops, Yahoo has also launched a big update to its Flickr app on Android. The new version essentially brings it up to par with the recent iOS release which has reportedly already prompted a huge jump in uploads.

It remains to be seen just how Flick and Tumblr will work together going forward. Both services are not making Yahoo much in terms of revenue, which is an obvious hurdle for the company to deal with.