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Dell and Google Anounce Partnership

Google Strikes Deal With Dell

reprinted from Wall Street Journal

Google Inc. and Dell Inc. have reached an agreement to install Google software on millions of Dell personal computers before they are shipped to users, said Google's Chief Executive Eric Schmidt.

Under a roughly three-year pact, Google, of Mountain View, Calif., would pay Dell to have its desktop software for searching the content of a user's hard drive and emails, and a Web browser search toolbar installed on the computers, according to people in the industry familiar with the matter. Dell would also set the default search engine for users to Google's offering, one of the sources said. Financial terms are not expected to be disclosed. Talks between Google and Dell were first reported in The Wall Street Journal in February.

PC Makers Team Up With Microsoft's Rivals
02/07/06The agreement would help circumvent some of Google's sticking points with Microsoft Corp.'s new Web browser to be released this year. The Web search company has complained that Microsoft is making it too difficult for users to change the default setting away from Microsoft's search engine. The Justice Department earlier this month said that Google's concerns were not founded.

By expanding its placement on PCs, Google will instantly gain a spot in front of millions of consumers, who industry analysts say are far more likely to use software and access Internet services if they are pre-loaded on PCs. People familiar with Google's thinking have said the deal with Dell wasn't designed exclusively to strike back at Microsoft, but rather to increase use of Google's services. Still, a tussle with Microsoft over the new Web browser settings increased Google's desire to win the Dell agreement, the people said.

For Dell, the agreement is an opportunity to boost revenue from software shipped on new computers. The world's largest PC maker, had set up a competitive bidding process for Internet companies who wanted the right to load their software on as many as 100 million new Dell PCs. Yahoo pulled out of the running, and then Google beat Microsoft, people familiar with the matter said.

Under the agreement, buyers of Dell PCs will have their browser home page set to a co-branded Dell and Google site, according to the industry sources. The two companies earlier this year publicly acknowledged offering that page and distributing Google software on new Dell PCs under a test agreement.

Stay Tuned as the Browser Wars between Microsoft and Google continue to heat up !!!