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Google, Dell Sign Software Bundle Deal

As anticipated, Google has signed a three-year deal with Dell to bundle Google software - including Google Desktop and a cobranded default homepage - on Dell PCs before shipment, writes Forbes.com. Financial details are not likely to be disclosed, but it may put up to $1 billion in Dell's coffers at a time it sorely needs them. The bundle approach is a page out of Microsoft's playbook. Google has developed products that provide alternatives to Microsoft offerings; its Google Pack offers software from Symantec, Adobe, RealNetworks and others.

Piper Jaffray's Safa Rashtchy is quoted by the New York Times as saying the move may be the beginning of a era in which Google pays for alliances to maintain its growth rate.

"This is very important for Google, particularly if you look at how Microsoft is going to be pushing its search technology by embedding it in Internet Explorer," Rashtchy is quoted as saying. "Most people are going to stay with the default search technology that comes with their machine."

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