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To summarize, these options give us considerable flexibility in how we design our web app while satisfying the requirement that Google provide the search capability.
MIT's license for the Google appliance limits us to 500,000 pages. In talking to Dave Conlon of IS&T, it appears we are well within that limit. As the IS&T web site work is generally not adding a lot of new pages, merely moving them from one location to another, I don't think at this point we will make an impact on the limits of the license.