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From Microsoft Watch: Google is now backtracking on if and when it will release some kind of Google Health service. But our tipsters tell us that Microsoft is readying new Windows Live Healthcare services for both consumers and businesses. Microsoft could announce its Live Healthcare plans as soon as next week at a Washington, D.C., press event where executives are set to talk up some of Redmond’s forthcoming initiatives in the healthcare space. As our Google Watch blogger notes, however, healthcare isn’t the only arena where Microsoft and Google are likely to be duking it out in the coming months.