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Now close to 15 years old and used by some 360 million people, Hotmail is getting an upgrade. The revamped email service is expected to roll out in July or August. The elephant in the room, of course, is Google — and to a lesser extent, Yahoo, said Laura DiDio, principal of ITIC. Google has steadily enriched the feature set of its relatively young Gmail service. “Microsoft knows it needs to step up Hotmail if it wants to compete with Google,” DiDio said.

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