Dell and Google sign agreement

Dell chucks out Microsoft, signs deal with Google for bundling Google desktop.

Microsoft's sofware market has come under serious threat as Dell and Google has reached an important deal. Dell is a PC giant and Google is the leading internet search engine.

As part of the new deal, Dell PCs will come equipped with Google's software in the future. The Google desktop software includes several PC applications and will also feature the Google toolbar. A co-branded homepage will also be included with the PC.

Though the revenues of the deal is unknown, both the parties are expected to receive revenues from the agreement. The process to have the deal had started almost 4 months ago and at the time, it was said that Google was paying Dell up to $1 billion to have its software in the Dell PC.

Said Eric Schmidt, Chief executive, Google, "It's a really big deal for both companies. It's very good for them and very good for us." 

This deal is expected to bring serious competition to Microsoft which has its own integrated web browser, Internet Explorer. But Microsoft's dominance has been under threat fro quite sometime as Google rolled out a bunch of highly popular products. Yahoo! and eBay had already made a tie-up which was considered to be a threat to both Microsoft and Google.

From now onwards, the Dell PCs will have Google's desktop search software and Google toolbar and it will also feature a space for the Google search engine. The homepage will automatically directed to a homepage co-branded by Dell and Google.

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