According to reports, Apple is almost ready to release a cloud-based music storage service compatible with iTunes.

Sources say the product is finished, and Apple might be ready to launch its service before Google’s competitive product sees the light of day.

Several sources close to the matter and aware of both companies’ plans told Reuters that Apple will soon let iTunes customers keep their music libraries on a remote server. The music would then be accessible from any Internet-connected, iTunes-running device.

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But though the technology is in place, one all-important piece is missing from both music offerings: licensing agreements with major record labels. Google is stalling on its own music projects due to rumored tiffs with record labels, and Apple has yet to discuss any new licensing agreements with labels, according to Reuters’ sources.

However, since the latter company has been working with musicians for a long time vis-a-vis iTunes and iTunes’ new social component, Ping, one might imagine that Apple has a laid some groundwork for fruitful discussions around licensing.

Google was rumored to be building an iTunes competitor in the summer of 2010. The service was said to have an Android-friendly component or two, and the Android music store was expected to launch with the release of Gingerbread. The service was also rumored to include music-streaming options in addition to music locker features.

However, more current reports suggest that Google may be further than ever from an actual launch due to licensing snafus with major record labels, particularly Warner Music Group.

We’ll keep you updated on Apple and Google’s music services as the weeks wear on — particularly next month, when Google is set to make a slew of announcements at its annual developer conference, Google I/O.