Dell to Bundle Google Services on All Machines, Giving Google Advantage Over Microsoft

Strategic Insights -

Dell, after partnering with AMD and breaking ranks with Intel, has taken a bold move to partner with Google, confirming its plans to bundle Google's Desktop, Toolbar, and search on every machine it manufactures worldwide unless customers opt out. This strategic move is expected to give Google an upper hand in the search market, especially with the upcoming default Dell-Google home page on all Dell machines. The deal is significant, with Google reportedly paying Dell an undisclosed amount for the privilege. The partnership comes as a response to Microsoft's next-generation browser, which Google claimed made it difficult for users to escape Microsoft's lock-in.

Key Takeaways:

  • Dell has partnered with Google to bundle Google's Desktop, Toolbar, and search on every machine it manufactures worldwide, giving Google a significant advantage in the search market.
  • The partnership is for a three-year period, with Dell reportedly getting paid an undisclosed amount by Google.
  • Google and Dell will split revenues from search-based advertising, marking a significant revenue stream for both companies.
  • Microsoft's next-generation browser was cited as a factor in Google's desire to win the deal, which may imply that Google paid Dell a substantial amount to secure the partnership.
  • Yahoo and Google competed against each other to secure the deal, with Google emerging victorious.
  • The partnership is set to give Google a default home page on all Dell machines, providing users with easy access to Google search and other Google services.

Statistics:

  • 3 years: The duration of the partnership between Dell and Google.
  • Undisclosed amount: The sum of money Google paid Dell for the partnership.
  • 100%: The percentage of Dell machines that will come with Google's Desktop, Toolbar, and search pre-installed, unless customers opt out.

Sources:

  • "Dell Teams with Google" by Wall Street Journal (February)
  • Goodman Sach's conference (Eric Schmidt's quote)
  • Various reports (no further details)