Dell Pre-Installs Google Software, also, Hell Freezes Over

[Lemur]

Okay, so this isn't quite the shocker that Dell selling AMD was, but crimmeny, how many chairs do you suppose Steve Ballmer is throwing right now? Pre-installed Google software on a Dell, indeed.

Spoiler Alert, click show to read: 

Google, Dell in computer tie-up
Computer giant Dell and internet search engine Google have reached a deal to install a version of Google software on Dell at the factory level.

The Dell computers will contain Google software including several personal computer applications, a Google toolbar and a co-branded homepage.

Both firms will receive revenue from the deal, but details remain unknown.

Google chief executive Eric Schmidt said that it was the first of several deals.

Turning point

Speaking to a group of investors during a Goldman Sachs internet conference, Mr Schmidt said: "There is probably more to come."

Dell made no comment.

The agreement between the world's largest personal computer company and Google, comes after the two firms announced they would install Google's software package on Dell computers in February.

Back then the two firms were rumoured to be considering installing Google software on up to 100 million new Dell personal computers after the software firm beat rival Microsoft in the deal, and Yahoo pulled out.

The deal could mark a major turning point for Google and mark a serious threat to rival Microsoft.

Microsoft and Google have adopted different business models.

Instead of selling the software to make a profit, Google makes money by selling advertising to firms that want access to those who use its free products.

Microsoft has identified this sort of software as a key threat to its business.

Google shares rose by $1.74 closing at $382.99 on the Nasdaq, before slipping 99 cents in extended trading.

Meanwhile Dell shares climbed 12 cents closing at $24.30 Nasdaq, before rising 9 cents in extended trading.

[Xiahou]

I find it tough to get excited about even more garbage coming preloaded on retail PCs- no matter who's garbage it is.

Honestly, it's not like all this junk isnt freely downloadable. If I had my druthers, nothing but the barest essentials would come pre-installed..... in a way I guess I do though, since I virtually never buy retail PCs.

[Mikeus Caesar]

As interesting as this may be, Custom Build PC's > Pre-built Retail PC's.

With a custom build, you can decide what crap goes on it. With a retail, your just given half a tonne of bloatware and some useless antivirus software.

[Lemur]

Currywurry, Xihaou, of course doing your own install is better. What's interesting here is not that Dell has found a new piece of shovelware for their PCs. What fascinates this Lemur is that (a) Microsoft considers Google enemy number one, (b) Dell has been deeply in bed with Microsoft and Intel for a long time, and (c) suddenly Dell has taken steps guaranteed to upset both Intel and Microsoft. Seems like there's a sea-change going on.

Who knows? Maybe Dell will offer desktops with Linux as a standard option in the near future. They seem to be burning all of their old bridges.

[edit]

Two more thoughts: (1) Google's software is easy to uninstall, as opposed to some of the truly hideous software Dell puts on their PCs. (2) I'll take any excuse to mention the infamous Ballmer chair episode.

[Rodion Romanovich]

Bleh, a good reason not to buy PCs from Dell any more - I hate all those junk sharewares and extra toolbars in all programs, obstructing the view on my screen. I run my browser with the smallest size icons, and high desktop resolution to make 99% of my screen area (when browsing) room for the actual webpage, and I like it that way. One more ******* icon or popup at the bottom right side of the screen than I currently have would make me go insane!

[Lemur]

Found an article that gets further into why I find this interesting. It does seem as though the big tech companies are re-aligning, and I wasn't clear on why they were doing so. It's a decent read.

Spoiler Alert, click show to read: 

Tech Titans Take Sides
Yahoo partners with eBay to battle with Google, which is teaming with Dell to put the heat on Microsoft

In the war for dominance of the Net, May 25 turned out to be a big day for alliance making. First there was news of an ad revenue-sharing deal between Yahoo! and eBay. Then came the announcement that Google would put its tools on millions of new personal computers made by Dell.

The pairings highlight the importance the fast-growing, $12.5 billion Internet ad market and the race to get in front of as many Web surfers as possible. The alliance with eBay (EBAY ) gives Yahoo (YHOO ) a way to narrow a lead by Google (GOOG ) in generating advertising sales. Paring with Dell (DELL ), meantime, helps Google muscle in on Microsoft's dominance of the desktop. "These alliances are predicated as a response to a looming threat" from others, says Standard & Poor's analyst Scott Kessler. "Companies are inclined to make these moves so they can solidify and enhance their competitive positioning."

TWO-WAY TRAFFIC. Under the Yahoo-eBay partnership, which covers only the U.S., Yahoo will supply eBay's site with ads, and the two will split revenue generated from them. eBay's auction listings will be included in Yahoo search results, driving users from that site to eBay's listings. Yahoo will also let users pay for Yahoo services using PayPal, eBay's online payment-processing company, and Yahoo links will be included on the eBay toolbar.

"We have the largest collection of content on the Web in one place, so as they index more and more of our listings...that's very relevant content that Yahoo would like to embrace into their Web search." says John Donahoe, president of eBay Marketplace.

Analysts say the Yahoo-eBay deal is a win for both companies. For Yahoo, it means a chance to get ads in front of eBay's estimated 76 million U.S. users. The deal gives eBay a bigger slice of the red-hot online ad market. It will also be a "big boost" for PayPal, says Scot Wingo, CEO of ChannelAdvisor, a North Carolina company that provides services to eBay sellers and other merchants. Because Yahoo has many paid services, Wingo says, the partnership will give users the opportunity to use PayPal for many more of their online transactions.

On its face, the move would also appear to buttress Yahoo against Google. For instance, Google would miss out on the portion of ads on eBay's site that will be earmarked for Yahoo. But analysts say in practice Google won't be hurt much at all. eBay will continue to be one of Google's biggest customers.

Currently eBay and its subsidiary, Shopping.com, are the two largest buyers of Google ads. According to Nielsen NetRatings, ads purchased through Google by the two companies were viewed a total of 1.4 billion times -- 38% more times than ads purchased with Yahoo from the two. That huge amount of spending from the company only furthers Google dominance in search and, indirectly, its ability to build new businesses that can compete with eBay and Yahoo.

NO THREAT TO GOOGLE. Merrill Lynch (MER) analysts in a research note called the arrangement a "good strategic fit" that could mean as much as $200 million in additional revenue for the Yahoo affiliate network in 2007. But it doesn't change the securities firm's outlook on Google at all. "We do not expect Google to lose traffic based on this announcement and are not changing estimates at this time," writes Merrill Lynch's Justin Post.

The Dell deal, on the other hand, gives Google prime real estate on desktops -- a space dominated by Microsoft (MSFT ). Under the alliance, first reported by The Wall Street Journal, Dell computers purchased by consumers, small- and midsize businesses, and select enterprise customers will come loaded with a suite of Google software, including the Google Toolbar and the search application called Google Desktop. The default home page of Internet Explorer will be a page cobranded by Google and Dell.

That not only puts Google's software in front of millions of users who might not otherwise have downloaded it, but also gives those users an express route to search using Google's engine and, potentially, clicking on ads placed alongside search results. Dell is the world's largest PC maker and sold 4.9 million PCs in the U.S. in the first quarter, for a 29.8% market share, according to Gartner Dataquest.

DESKTOP WARS. The offensive could limit Microsoft's ability to use its prominence on PCs to direct users to its MSN Internet tools and services. In recent months, Microsoft has attempted to use its popular desktop applications like Internet Explorer to drive traffic to its Web sites and search engines. That drew the ire of Google, which in April complained to the Justice Dept. about unfair competitive practices.

Google didn't get much satisfaction. Less than a month later, on May 12, the Justice Dept. dismissed the complaint. It seems Google now is taking matters into its own hands.

[Blodrast]

What's itching me is, is Google slowly becoming another Microsoft ?
I know, I know, this is OTish, so I won't hijack your thread.

[Lemur]

Blodrast, that's hardly a hijack, given that the thread is more or less about Google, Dell, and the re-aligning of our tehnological overlords. When you say "becoming the new Microsoft," what exactly do you mean? Google can't sell you an OS for $400, so I'm assuming you mean something more general ...

[Crazed Rabbit]

Personally, I don't like Google too much lately. They are buying up companies than offering free services, which they later stock with ads. They are becoming a bemehoth.

And I really don't want Google crap on my PC. All I need is the bare minimum. I would like a pre-built dual-boot Linux-MSFT OS though.

Crazed Rabbit

[Blodrast]

Lemur: I meant in the sense that their monopolies seem to be expanding - and they are like Microsoft in that respect, in that the average user uses M$ (and, more recently, apparently, Google) "stuff" whether they like it or not.
How many people use other search engines ? Prolly less than the number of ppl who use other OSes

You may note that Google has been continuously (and aggresively) expanding its objectives ever since they appeared on the market. It's no longer just the search engine: it's the mail, the storage, the ads, google maps, google earth, and the list goes on.
Now, I don't particularly have a problem with their software in itself - it's definitely much better than whatever M$ buggy junk, BUT with the apparent policy/trend.

I'm a bit uneasy about emerging giants and their monopolies.
(And a bit paranoid in general )

[Sir Robin]

It seems to be a natural trend that once corporate bigwigs get a taste they want more. Many companies begin aggressively expanding once their ego reaches "critical mass." Most companies fail but still survive this "imperial" phase and some don't.

I figure this is just Google's turn to try for the "big time."