Description-logic-based knowledge representations and reasoning methods are being used increasingly as the basis for semantically-rich software services. Using such representations and reasoning methods in comprehensive applications is among one of the best ways to identify and understand gaps and limitations. KAoS domain and policy services, which rely extensively on a DAML-based ontology, are used as a case study to investigate an in-depth application of DAML. In this context, we explore the current limitations of DAML semantics. We also describe our observations about the place of ontology description at the heart of KAoS services, and outline requirements for effective interfaces for humans and for translation to and from efficient programming environments. Next, we present the problems implicated by development of ontology descriptions in a distributed dynamic environment. Finally, we assess the utility and maturity of available tools such as editors, programming libraries and inference engines. An application of KAoS to provide policies for DAML-S Web services concludes the paper
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