Dell, Google Take The Plunge

The long-rumored Google-Dell partnership is official.

Google confirmed an agreement today that Dell will preload Google Desktop and Toolbar on its PCs, as well as add Google Search to the Internet Explorer 6 side pane.

The two companies will also offer a co-branded homepage, which new Dell
customers will default to during their first visit to the Web.

Financial terms of the deal were not disclosed.

While primarily targeted at the millions of Dell consumer customers,
Google said the deal extends to systems Dell will sell to small-to-medium
size business customers and select enterprise customers on a global basis.

Google CEO Eric Schmidt confirmed the deal in a webcast today. For the
enterprise, Schmidt said Dell has been a pioneer in “filling out the Windows
platform” and giving corporate customers a pre-installed image of the
software they want.

Schmidt said if any enterprise customers don’t want the
Google software they are free to not have it installed.

Back in February, Dell first confirmed it was testing Google
software for installation on its consumer desktop computers

A Dell
spokesman said the company actually began testing how it might use Google
software back in December.

“This isn’t surprising,” Richard Shim, senior research analyst at IDC,
told internetnews.com. “The desktop is becoming more of a digital billboard into the homes of consumers. For Dell this makes total sense and I’m sure other PC manufacturers will follow.”

.

“Even if it’s a few dollars per PC, that’s a goldmine for Dell,” Roger Kay,
analyst at Endpoint Technologies Associates, told internetnews.com.
“PC makers are fighting to save even pennies on component parts.”

Microsoft has been the dominant presence on PC desktops for years, with
its Windows logo showing at startup, Internet Explorer browser and
Office software.

Google recently complained to the Department of Justice (DoJ) about
MSN being the default search feature in Internet Explorer, but the DoJ dismissed the
complaint, noting it’s easy enough for users to switch to other search
options, including Google.

Kay said even though the DoJ was criticized for a relative slap on the wrist
of Microsoft in the company’s landmark antitrust case, the decision effectively opened up the PC desktop to
other players.

“Google and its competitors are definitely emboldened by the DoJ’s
decision,” said Kay. “In the old days it was Microsoft saying the desktop
was our real estate, and the PC makers didn’t like that. Now they have more
opportunity.”

Dell’s long been considered the poster child for WinTel
systems, but it’s been venturing beyond that turf in recent
years. Along with support for Linux, Dell recently announced plans to ship
its first system based on AMD processors (a multiprocessor server) later this
year.

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