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"Picasa enables users to easily manage and share digital photographs, and its technologies complement Google's ongoing mission to organize the world's information and make it universally accessible and useful," said Jonathan Rosenberg, vice president, Product Management. "Picasa is an innovator in the field of digital photography, and we're excited that the Picasa team is joining Google."
Picasa was used for photo-blogging, a recent feature in blogger.com
Business Wire [home.businesswire.com]
There is always the obvious branding/goodwill stuff this will generate but as far as direct profit I fail to see the business model for this one here.
It will come in good time I suppose, but for now, neat stuff!
I am guessing Google will take this extra data into consideration when crawling the users photo albums and will result in Google having a better and bigger image search.