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How will Desktop Search companies make money ?

The desktop search offerings unveiled in the last three months by Google, Microsoft, Ask Jeeves (ASKJ ), and Yahoo are all still in test mode. Yahoo is working with software from X1 Technologies for its desktop search product. AOL, which is expected to release a similar product early this year, is partnering with Copernic Technologies for its software.

The money-making potential of desktop search is dubious in the short term. The various players haven't announced business blueprints, but it's likely that some will experiment with ways to cash in, such as placing relevant ads alongside search results.

Such a move, however, would be rife with controversy. Google sparked a firestorm last year when it announced that its free e-mail service, Gmail, would scan customers' messages and place relevant ads next to the text. An effort to scan the content of personal files would likely prompt an even testier reaction.

Nevertheless, desktop search offerings appear to be a strategic necessity in this increasingly competitive niche. And the winners will be the ones who find a way to make it pay.

Via Can Desktop Search Find Profits?

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