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Monday, May 29, 2006

Google’s Deal with Dell a Blow to Microsoft

Posted by @ 1:30 am

While Yahoo! was busy putting the finishing touches to its new co-operation with eBay, Google has not been idle, but has clinched a spectacular deal of its own.

As announced last Thursday, Google and Dell have agreed to a trial that will see Dell pre-install a suite of Google software onto each PC before it leaves their factories. The software package will include the Google toolbar, a pre-set Dell-Google co-branded homepage and search applications for desktop and email search.

Google’s CEO Eric Schmidt indicated that this was only the start of the co-operation between Dell and Google, with more agreements still to come.

For Microsoft, this could be a significant blow. The company knows exactly how effective pre-installation of software is in increasing market share – they did exactly the same when they bundled Internet Explorer with the Microsoft Office packages and crushed Netscape in the now legendary browser wars. The strategy is effective because computer users tend to be fairly passive and leave pre-installed desktop preferences exactly as they are when they unpack their new computer or laptop.

The Dell deal means that Google is able to influence user habits even before they go online for the first time, which is something they haven’t been able to do up to now. And with how many users can Google get a foot in the door early? Well, industry speculation has it that the deal could cover up to 100 million computers!

Discussion (4 - comments)

Why should one think that Microsoft has taken a blow?

Anyway Dell is dependent on Microsoft for OS. And I am sure that the newer versions of Microsoft OS would create user preferences for its browsers (ie) and search.

By kbsconsultants - May 30, 2006

This surely is a blow for Microsoft. Google is promoting opensource alternatives to MS (ie. firefox, mozilla), so next step is that Dell will install Linux on its Pc’s or at least offer a choice for Linux based systems. Can’t wait to see this happen.

By Anonymous - May 30, 2006

It is possible to concur with kbsconsultants. This is a mere trifle and a useful stimulus to competition. Who cares if Dell wants to install what in the past has been regarded as spyware. That is par for their particular course. Why don’t they install Real Player while they are at it. Oh, wait, don’t they already?

And who buys Dell? Mr and Mrs Average buy it for Johnny to do his homework on until he grows up and buys a proper computer.

The Internet is in danger of becoming a medium for Adwords owing the illegitimate dominance of a certain company. That company need crumbs like the Dell deal to the to make up for its losses in the search market. Having switched to MSN search it is possible to attest that there is little disadvantage. Results have generally been going downhill on all the giant engines anyway. Market dominance is seldom a good thing. Who will join me on a crusade for search results not driven by advertising? (Wild applause)

By Anonymous - May 30, 2006

I agree. Google has ruined its results with results that favor sites with Google Adwords. Just check out their own message boards, especially the one dealing with sitemaps. And their ruse of challenging MS on their browser/search engine combination is just a red herring. They intend to lose the case – then they will have legal presedence to join their search with a browser set to use Google. Then their Adwords will bring them another couple of years before their model starts to fall apart. It’s ironic that Google pushes “open technology” solutions while it is most likely an open-source search engine that will eventually be their undoing.

By Anonymous - May 30, 2006

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