Google earlier announced that it is taking steps to further improve privacy practices. The company said in its blog:

When you search on Google, we collect information about your search, such as the query itself, IP addresses and cookie details. Previously, we kept this data for as long as it was useful. Today we're pleased to report a change in our privacy policy: Unless we're legally required to retain log data for longer, we will anonymize our server logs after a limited period of time. When we implement this policy change in the coming months, we will continue to keep server log data (so that we can improve Google's services and protect them from security and other abuses)-but will make this data much more anonymous, so that it can no longer be identified with individual users, after 18-24 months.

Just as we continuously work to improve our products, we also work toward having the best privacy practices for our users. This includes designing privacy protections into our products (like Google Talk's "off the record" feature or google desktop's "pause" and "lock search" controls). This also means providing clear, easy to understand privacy policies that help you make informed decisions about using our services.

How anonymous is anonymous? That's for us to find out soon...