Yahoo Inc. is hoping to leapfrog Microsoft Corp. by releasing a tool that allows users to quickly and easily search for information on their PCs as well as in their personal files stored at Yahoo's online services, a source familiar with the plan said Wednesday. Microsoft previewed an upcoming desktop search application last week at an event for financial analysts at its Redmond, Washington, headquarters. The tool builds an index of content on a user's computer and makes it searchable. Relevant links from the Internet, along with advertisements, are displayed in a pane on the right side of the screen. Yahoo is developing a similar tool but plans to take its capabilities a step further, according to a person familiar with the plan. In addition to letting users search their local mail and hard drive, Yahoo's tool will extend the search to include personal files stored at its online services, such as e-mail, calendar, and picture hosting, the person said.
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