Google has struck again, this time through a deal with the New South Wales (NSW) Department of Education in Australia in which 1.3 million new users would switch to its free email product.

Through the deal, the students and teachers will receive customised Gmail accounts. Although Gmail is free, the costs lie in the tight security and integration with existing systems that Google would provide.

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Pronounced “cool,” the new search engine at cuil.com created by former Google employees claims to have three times the amount of sites indexed as Google, ten times as that of Microsoft.

Led by Anna Paterson and Tom Costello, Cuil’s secret lies in the formula used to index sites, an innovation that has allowed the company to index so many sites while spending only $7 million and using 140 servers. (In comparison, Yahoo!’s search engine cost $300 million.)

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