radarhunter
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Dell Inc. will begin selling computers equipped with Google's programs in a deal that would give the search giant greater visibility on PCs.
Google CEO Eric Schmidt announced the three-year agreement with Dell during a meeting with analysts Thursday at a Goldman Sachs conference.
The deal could broaden Google's reach among PCs users, both with consumers and in the corporate world. The agreement also gives Google a major victory in its rivalry with Microsoft Corp., whose Windows software has long dominated the PC market.
"I think it's a pretty big deal for Google to have potentially tens of millions of eyeballs on the first screen," analyst Roger Kay of Endpoint Technologies Associates Inc. said. "This is another round for Google, basically."
Under the deal, Dell will sell computers for both the consumer and corporate markets with Google features, including the company's toolbar and search engine in the Internet Explorer 6 side pane.
The machines will also include a Google-Dell home page.
Both Microsoft and Mountain View's Google are vying for the most valuable piece of real estate in technology: the first screen users see on desktop or notebook PCs. In recent months, Google has released software that helps people organize and search for material on their desktop. Teaming with Dell will give that software much greater visibility.
Google had said in February that the two companies were "testing the distribution of various technologies."
Google did not release the financial terms of the deal.
But some analysts speculated that the deal probably involved Google paying a fee for every Dell PC with its programs.
Kay said the deal is also a big win for Dell, adding, "I'm pretty sure (the fee Google will pay) is denominated in dollars, rather than pennies."
Analyst Marianne Wolk of Susquehanna Financial Group said the partnership also gives Google a bigger presence in the corporate PC market.
"It could be a terrific vehicle for Google to increase its presence in the enterprise space," she said.
"This is an offensive strategy to take on" the corporate market.
Google shares rose $1.74, or 0.5 percent, in Thursday's regular trading. Dell shares rose 12 cents, or 0.5 percent, to $24.30.
Google CEO Eric Schmidt announced the three-year agreement with Dell during a meeting with analysts Thursday at a Goldman Sachs conference.
The deal could broaden Google's reach among PCs users, both with consumers and in the corporate world. The agreement also gives Google a major victory in its rivalry with Microsoft Corp., whose Windows software has long dominated the PC market.
"I think it's a pretty big deal for Google to have potentially tens of millions of eyeballs on the first screen," analyst Roger Kay of Endpoint Technologies Associates Inc. said. "This is another round for Google, basically."
Under the deal, Dell will sell computers for both the consumer and corporate markets with Google features, including the company's toolbar and search engine in the Internet Explorer 6 side pane.
The machines will also include a Google-Dell home page.
Both Microsoft and Mountain View's Google are vying for the most valuable piece of real estate in technology: the first screen users see on desktop or notebook PCs. In recent months, Google has released software that helps people organize and search for material on their desktop. Teaming with Dell will give that software much greater visibility.
Google had said in February that the two companies were "testing the distribution of various technologies."
Google did not release the financial terms of the deal.
But some analysts speculated that the deal probably involved Google paying a fee for every Dell PC with its programs.
Kay said the deal is also a big win for Dell, adding, "I'm pretty sure (the fee Google will pay) is denominated in dollars, rather than pennies."
Analyst Marianne Wolk of Susquehanna Financial Group said the partnership also gives Google a bigger presence in the corporate PC market.
"It could be a terrific vehicle for Google to increase its presence in the enterprise space," she said.
"This is an offensive strategy to take on" the corporate market.
Google shares rose $1.74, or 0.5 percent, in Thursday's regular trading. Dell shares rose 12 cents, or 0.5 percent, to $24.30.