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Amit Singhal, Google Fellow explained the Official Google Blog: Technologies behind Google ranking in his latest post published on 16th July, 2008 at Official Google Blog
Amit reveals the core technology in Google ranking system comes from the academic field of Information Retrieval (IR).
Google Ranking Algorithm consider various aspects over web page before awarding any ranking for those website URL looking over heavily on below:-
Understanding pages
Understanding queries
Understanding users
At the end of his article he also mention the latest advance that Google Ranking Team made in search is Cross Language Information Retrieval (CLIR).
CLIR allows users to first discover information that is not in their language, and then using Google's translation technology, we make this information accessible. I call this advance: give me what I want in any language.
Don't miss to read more at Official Google Blog: Technologies behind Google ranking
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Search Engine Optimization is all about changing strategies according to SE algorithm. You need to keep urself updated and apply the same for your websites. If SEO Experts or SEO Companies are not ready to change their approach the same strategies as before they are not going to get succeed. The Guru Mantra is you need to be always Pulsate according to latest trends.
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Afzal Khan
www.afzalkhan.org