“Google is to launch a music service to compete with Apple’s iTunes music store as part of a forthcoming upgrade to its Android mobile operating system”, according to Sanjay Jha, chief executive of Motorola Mobility stated about a month ago.

Now the sources reveal that Google has begun testing its music service internally. The music service is supposed to launch very soon. According to CNET, Google’s finally testing Google Music internally. Music industry source told CNET.

“Employees at the online behemoth have begun a process commonly referred to in Silicon Valley as dog-fooding, in which employees try out a new service or product..
Two weeks ago someone writing at the XDA Developers forum claimed to have accidentally discovered Google Music after installing the Honeycomb version of the Android operating system on a phone. Turns out, that was indeed a working version of the service, the music industry insiders said, adding, however, that the final version could be much different.”

Many of us must have heard the rumours of the Music Sync feature in Android 3.0 which a user was able to successfully turn on and begin syncing his music to some Google cloud server for streaming to any Android device or computer.

The source says that Google is still in a process to negotiate deals with publishers and major record labels. Reportedly Google is also asking for the right to store users’ existing music libraries on their servers in the ‘cloud’. You’ll be able to buy online music as well, and have it stored in the cloud. Industry insiders contemplate that the launch could take place at any point from now until May.