Hi,
You might want to try the google music manager anyway as it has very recently undergone a pretty major revision whereby it does not by default upload your albums to the cloud, transcoding as it goes. It now primarily just identifies you music and adds it to your cloud based collection (working on the principle the music is already in the cloud, just not neccessarily attached to your collection. I believe for unidentified music it still uploads).
If that does not work, there is always www.doubletwist.com which syncs your itunes playlists to android phones either wired or wirelessly (the later option costs I believe) and I believe it transcodes to mp3 in the process (would need to check as its been a while)
Last option I can think of is that itunes used to allow you to create another version of your music in a lossy (and therefore more compact format), while keeping the original lossless. If that works then the google music manager should be able to pick it up.
Why the cloud - For me it means my music is accessible from my PC, Phone and tablet. Recently changed Android phone and once I entered my google user - music collection appeared more or less instantaneously with no connection to PC required.