Dell to Bundle Google for a Billion

It looks like Google is beating out Microsoft yet again. This time the deal is for Dell bundling the Google toolbar on up to a 100 million desktops for $1,000,000,000.

Bob Kaufman, a spokesman for Dell, the world's leading personal computer maker, said his company is evaluating Google software that PC customers could use to search both the public Web and for local information stored on their PCs.

"We can confirm that we are running a test with Google that could include a Google-powered Dell home page, Google desktop search and a Google Toolbar," Kaufman told Reuters.

Older Dell products used MyWay as the default search provider. The change to Google will probably kill off about 1/2 to 1/3 of Ask Jeeves reach.

The Wall Street Journal also notes that on top of Google wanting to load up their software they also want the default search box in Dell's Internet Explorer browsers to point at Google:

Google also wants Dell to use its service to by default run the built-in search box that will appear on the new version of Explorer. Such an agreement would circumvent some of Google's sticking points with Microsoft's new browser.

If Dell does that will Microsoft raise Windows licensing fees?

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AFAIK it's quite common for

AFAIK it's quite common for hardware companies to have default company branded homepages installed. That is, I don't think it will affect Microsoft, as there will still be a Windows OS on the boxes.

maybe, but...

I don't think it will affect Microsoft

Did you see the bit I quoted from the WSJ? They are saying that Google wants to have Dell make Google the default search provider inside of Internet Explorer.

The new IE is way better than older versions BTW. Tabbed browsing, etc.

It's a nice visibility move

It's a nice visibility move for Google:

Dell's global market share seems to be around 17%, as the largest PC-producer. Possibly the US share is higher, but I don't think it's a lot higher than, say, 20%.

Enabling Google as the default search in IE implies that IE will have to be preinstalled on the machines, and along with that the Windows OS, which means money right in the pockets of Microsoft (as usual). I really can't see this as a threat to MS, but it is still a good thing for GOOG.

Threat to MSN

Microsoft would like to expand that brand so Google kicking them out is huge IMO.

That's a LOT of user data

100 million seems like a nice random sampling of users;) Probably much more effective than Nielsen ratings since only about 1% of people will have enough sense to fdisk their computer before loading it up with their info.

Not good for Ask

This is not good news for Ask. I mean it's enough that noone actually uses it, and that they want to increase their staff by 20%, but stealing 1/3 of their users ?