Vector Magic allows you to convert bitmap images to vector directly from their website. The process is fully automated, so for those who don’t have a Photoshop or Illustrator, converting images into vector format is not a problem now.

Vector Magic is extremely easy to use. Upload your image, select your configuration and let the system handle the rest. When it’s done, just download the vector output of your image.

http://vectormagic.com/

Tried it out already. I guess it works exactly like Illustrator's auto trace very useful and innovative for beginner though since there are a lot of options available to tweak