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May 25, 2006 2:50 PM PDT

Dell embraces Google

Google and Dell have agreed to a first in a series of deals to preinstall Web and desktop search software on the PC maker's computers, Google CEO Eric Schmidt said Thursday.

Speaking at a Goldman Sachs conference in Las Vegas, Schmidt discussed details of a long-rumored deal between the No. 1 search engine and the No. 1 PC maker, which is a strike against Google rival Microsoft. Under the deal, millions of Dell PCs will be loaded with the Google toolbar for Web and PC search, along with a co-branded home page, before they're shipped to consumers.

Financial details were not disclosed, but Schmidt said the companies will share revenue from search-advertising fees.

"The real reason we do this is for users," Schmidt said. People "turn the Dell machine on, and everything is integrated right there. (This deal) is a turnkey solution for search."

A Dell representative said that the deal will not hamper consumer choice on the Dell desktop, however. "Our motivation is to deliver customers tools that enable them to search and organize information quickly and easily, right out of the box...Dell customers will have the option of choosing Microsoft as their default if they prefer."

The deal covers Dell PCs sold to consumers and certain corporations.

As well as the Dell agreement, Schmidt talked about other coming Google services in a question-and-answer session at the conference.

For example, Google plans to introduce a targeted voice advertising service for Internet radio in the coming months, he said. The company is working to convert technologies for creating radio ads to complement its own advertising platform.

Listen up

The Google-Dell alliance During the Goldman Sachs Seventh Annual Internet Conference on Thursday, Google CEO Eric Schmidt breaks down the deal with Dell.

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"Targeted advertising is known to work...There's every reason to think it will for radio," he said.

Google is eyeing other complementary services for advertising. One such service would allow marketers to buy "run of site" promotional packages for itself or for partners' sites, Schmidt said.

The Web company is testing pay-per-call plans, which let marketers advertise in keyword search results and pay only when people call a 1-800-number for the promoted service. "Eventually, we'll roll it out," he said.

The Google-Dell deal comes on the same day Yahoo and eBay announced a three-year marketing deal that effectively combines their resources against rivals Google and Microsoft. Under terms of that agreement, Yahoo will provide graphical and search-related ads to eBay sites. In turn, eBay's PayPal will be the default online payment service on Yahoo.

In answer to a question about competition, Schmidt said eBay isn't a rival but rather a partner that he sees will grow closer to Google in the coming years. eBay will likely grow stronger because of its partnership with Yahoo, he said.

In contrast, Schmidt said he views Microsoft and Yahoo as clear competitors.

To be sure, Yahoo and Microsoft were reportedly vying for search-bar real estate on Dell PCs before Google sealed the deal. Schmidt said that Dell has been testing its software for the last six months.

Still, at least one analyst was largely unimpressed with the Google-Dell agreement.

Stephen Baker, an analyst at NPD Techworld, said: "It strikes me as a great deal for Dell, as they are basically selling dead space, and a bad deal for Google, as I doubt that they will collect many incremental eyeballs beyond the ones they have now."

See more CNET content tagged:
Eric Schmidt, Dell PC, pay-per-call advertising, Google Inc., Internet search advertising

Add a Comment (Log in or register) 33 comments (Showing first 20 comments)
DELL Pre-Installs Too Much Already!
by backgroundnoise May 25, 2006 12:46 PM PDT
DELL pre-installs too much "garbage" software already! I don't see how this is an advantage to their users, but instead its a frustration.
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Is this a new development?
by Mister Winky May 25, 2006 12:53 PM PDT
I bought a new Dell laptop about a month ago and it already had the Google Toolbar installed and the default search page is a Dell-branded Google page.

Did I get a pre-release OS image? Was I an unwitting lab rat?!?! ;)

I know I don't have the full Google Desktop environment, but this article suggests that the Dell/Google partnership is all new.

-Mister Winky
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How About
by rpruett May 25, 2006 1:44 PM PDT
Novel concept, give the user a choice to install or not. I have nothing against Google but I would prefer to choose. As it is it just means more stuff to uninstall when I roll out another 200 computers!
Reply to this comment
Spyware
by firstlast May 25, 2006 2:15 PM PDT
Another spyware you pay for? You can get it from internet for free :)

It is recommended to run FORMAT C: as first thing after buying dell computer...
---
Pixel image editor - http://www.kanzelsberger.com
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Its all good
by Lindy01 May 25, 2006 2:24 PM PDT
It comes right off with the DELL load during the format.

How many people or companies actually keep the initial build?

I put my OS CD in as its powering up.
Reply to this comment
By the end of this decade..
by kc311 May 25, 2006 2:28 PM PDT
Google will either

A) Offer an open-source OS or for very cheap, included on shipped systems or available for download on their website.

B) Make the days of running an OS obsolete

C) Pioneer the use of search engines on all mediums of technology, including televisions, automobiles, cellphones, mp3 players, POS systems, and any other device that has the ability to connect to another device or server.

D) Purchase Microsoft, Apple, Verizon, and the U.S. government.
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Dell getting some guts?
by Jackson Cracker May 25, 2006 2:52 PM PDT
First they try to license OS X from Apple,
then a few AMD chips
and now Google software.
What's next, Linux?
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Substandard products
by rjdohnert May 25, 2006 3:34 PM PDT
Dell wants to package a substandard search tool, thats fine I wont be buying Dell. Googles desktop search tool is a privacy and security risk. I recommend Copernic Desktop Search.
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google pack - trojan horse
by motorush May 25, 2006 4:07 PM PDT
The mid-to-long term vision of Google on this is Google Pack as a trojan. Dell is opening a channel for future updates. Since Google doesn't have a competetive product to Vista, their last ditch effort is to make sure they can at least have a listener app on your deskptop. Google will try to use this as a trojan in order to compete against Microsoft. - Schmidt can say this if for the people as usual, but it's not.
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It's all about money.
by Jesw May 25, 2006 5:36 PM PDT
Looks like DELL has reached a dead end pinching all the money it can from its hardware suppliers. What's next?..software.
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Got a new Dell Inspiron yesterday...
by ggzz May 26, 2006 3:54 AM PDT
...and as with any other PC I bought in the last 21 years from my first IBM PC: Power On, FORMAT C:.

Then I installed a nice plain copy of XP SP2, let it discover all drivers without a glitch, installed IE 7 and collaterals and turned Microsoft Update on. Like with any other PC I will religiously avoid any Google, Yahoo, Apple, etc. invasive add-on, which in many cases are far worse replacements of what already available. I am not sure for ex. what value these OEM tools and crappy custom control panels add. Take the Dell Wireless Mgr for example: the one included in XP is perfectly functioning, and provides a nicer and more consistent UI experience.

And I will live happily for another 21 years without never ever getting a single instance of a virus or malware.

:-)
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Thank you Dell! :-)
by technewsjunkie May 26, 2006 6:30 AM PDT
Hey Microsoft didn't invent the browser or Search they way Google has implemented it.

Microsoft shouldn't own everything. Geez.
Reply to this comment
"We Do it for End USers"
by 206538395198018178908092208948 May 26, 2006 7:26 AM PDT
I completely disagree. its more like we do it for end users money. This another way big corporations push themselves on users. No doubt they offer a product that is good and better than the average ...but let the enduser choose if they want the software or not. let them make that descion wether its good for them or not. Instead its turning more like let us tell you what is good for you. Complete BS. I used to like dell laptops...now i will think twice before getting one
Reply to this comment
I for one welcome our ad wielding overlords
by Mr. Network May 26, 2006 10:09 AM PDT
This is a great move for Google to get more desktop penetration. They are starting to look more and more like a worthy opponent of my beloved Microsoft juggernaut.

Which one will have the first free O/S? We'll see in '09 for sure! Stay healthy until then my fellow nerds.
Reply to this comment
This IS good for end consumer....
by KsprayDad May 26, 2006 7:42 PM PDT
With all the cash Dell is pulling in on preplaced software we get cheaper machines.

The noobs don't give a hoot and techies are going to reinstall the OS no matter what.

Dell wins.
Google wins.
I win with a subsidized computer price.
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You buy Dell, Dell sell you to Google; Google show your info. to sell Ad.
by X-C3PO May 28, 2006 10:08 PM PDT
That's what google now are doing,,, Terrible
Reply to this comment
CNet ,Do Not del me again! "You buy Dell, Dell sell you to Google..."
by X-C3PO May 29, 2006 12:41 AM PDT
You buy Dell, Dell sell you to Google; Google show your info. to sell Ad.

That's what I think the Google doing now. Terrible....
Reply to this comment
The Sunset of the Microsoft Era
by deep.shade November 25, 2006 7:08 PM PST
This is a first sign of a sunset of Microsoft era. From the very start the Internet itself has never been friendly environment to MS and no longer it will be. Google is the leader of the search market yet, it will succeed as an application hoster for those who like trashing tons of everyday ads and stuff coming to their screens. For the others Google will remain just as one of the search engines and info feeds, as all the general applications like mail, text and spreadsheet processors as well as the file storage will be available for users at no cost at all. In less than 5 years there will emerge new hosting providers employing *nix platforms running open-source Apache, PHP, *SQL servers. They will provide everything you need for your everyday business and leisure. No need for Microsoft. And they will charge customers only for the traffic and nothing else. Inet will become free. Everyone who want it free now can get it right away. The only thing which stops the majority from doing that is the lack of supply of reliable and well recognized application hosters, but this is only a question of time.
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