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.

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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."

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Eric Schmidt, pay-per-call advertising, Dell PC, Google Inc., Internet search advertising

34 comments

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DELL Pre-Installs Too Much Already!
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.
Posted by backgroundnoise (32 comments )
Reply Link Flag
I second that motion
We want a PC from Dell, not to be bombarded by Advertising from all its media (fortune 500) partners.
Posted by kathy_torez (26 comments )
Link Flag
HP Beats DELL
HP Installs drivers and software for all their printers, scanners, cameras, etc. And you know how huge those programs can be. I really do think HP is the worse.
Posted by nmcphers (261 comments )
Link Flag
Is this a new development?
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
Posted by Mister Winky (301 comments )
Reply Link Flag
Google has been pre-installed
for like a year now..Google desktop sucks ass and I dont buy dell so I could care less.
Posted by SystemsJunky (409 comments )
Link Flag
How About
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!
Posted by rpruett (17 comments )
Reply Link Flag
Spyware
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 - <a class="jive-link-external" href="http://www.kanzelsberger.com" target="_newWindow">http://www.kanzelsberger.com</a>
Posted by firstlast (35 comments )
Reply Link Flag
Its all good
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.
Posted by Lindy01 (443 comments )
Reply Link Flag
By the end of this decade..
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.
Posted by kc311 (7 comments )
Reply Link Flag
You forgot one!
E) Join Netscape in the annals of former one-hit wonders.
Posted by Betty Roper (121 comments )
Link Flag
Dell getting some guts?
First they try to license OS X from Apple,
then a few AMD chips
and now Google software.
What's next, Linux?
Posted by Jackson Cracker (272 comments )
Reply Link Flag
Actually...
Dell already offers Linux on some of their business products, e.g. Precision workstations and Poweredge servers.
Posted by camel828 (8 comments )
Link Flag
Substandard products
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.
Posted by rjdohnert (16 comments )
Reply Link Flag
Dell for Free
If Dell wants to load all these programs on their computers, they should consider giving the machines away. Ads like this are marginal income, but can kill the desire to use a product/service--just look at NetZero.

While I have been a long time Dell user (6 computers), if I don't have the option to PREVENT the Google/malware software on the computer, I will go elsewhere for my Vista computer upgrade. Competition is too keen to put up with this short-sighted play.
Posted by tutcity (22 comments )
Link Flag
google pack - trojan horse
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.
Posted by motorush (15 comments )
Reply Link Flag
You're a nutjob
Most of the paranoid freaks out there are worried about Microsoft; but no, you have to be different. You're worried about the Google software running on the Windows operating system.

I doubt Google cares about the naked pictures of your dog.
Posted by Mr. Network (92 comments )
Link Flag
It's all about money.
Looks like DELL has reached a dead end pinching all the money it can from its hardware suppliers. What's next?..software.
Posted by Jesw (2 comments )
Reply Link Flag
How about this way?
Now that Dell can get money because of consumer, Would it pass back the benefits to consumer?
<a class="jive-link-external" href="http://www.buckleupnow.com" target="_newWindow">http://www.buckleupnow.com</a>
Posted by itispals (56 comments )
Link Flag
Got a new Dell Inspiron yesterday...
...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.

:-)
Posted by ggzz (2 comments )
Reply Link Flag
'Collaterals' and you
So, after hassling with formatting a drive and installing an OS,
you also had to install Microsoft's increasingly hopeless malware
and virus defenses, followed by updating it all. In other words,
it took you hours to do what a Mac does in five minutes. No
formatting, a preinstalled top of the market OS, and no need for
malware and virus defenses. It is striking that you can have
such a smug attitude when, in fact, you are making the easy
difficult. Furthermore, within a week or month, something will
probably go wrong and you will have to go through the entire
process again.

Dell's selling point is that it makes inexpensive computers. To
claim more than that is to deceive yourself.
Posted by J.G. (837 comments )
Link Flag
You've got to be kidding!
I thought the whole point of buying a Dell was to get the
cheapest PC possible. But you buy a Dell and then have to buy a
copy of Windows XP to install on it? I assume you're not pirating
your copy of Windows, so you add an additional $200 to your
purchase.

Windows users amaze me. You could have bought a Mac and
avoided the whole mess of corporate bloatware, virus scanners,
adware detectors and all that other sh*t, but you don't. I guess
the Windows world must be really something special for you
guys to put up with all that ridiculous hassle.

Unless...
Posted by montex66 (370 comments )
Link Flag
Thank you Dell! :-)
Hey Microsoft didn't invent the browser or Search they way Google has implemented it.

Microsoft shouldn't own everything. Geez.
Posted by technewsjunkie (1265 comments )
Reply Link Flag
"We Do it for End USers"
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
Posted by 206538395198018178908092208948 (141 comments )
Reply Link Flag
I for one welcome our ad wielding overlords
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.
Posted by Mr. Network (92 comments )
Reply Link Flag
This IS good for end consumer....
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.
Posted by KsprayDad (375 comments )
Reply Link Flag
Smart Move for Google and Dell
This is good for the consumer as well as Google and Microsoft. And this will give more people a choice as most people here do realize that Microsoft will set pretty much everything on the system to default to use their products(IE, Search, etc...) With Dell being the most sold PC in the market, this will help with the MS everything that you will be forced to see on Vista.

Now, if Dell would install Firefox and REMOVE IE, as well as most other MS CRAP it would be possibly the best system. I will drink to Google taking down the evil empire.
Posted by acurism (14 comments )
Link Flag
Smart Move for Google and Dell
This is good for the consumer as well as Google and Microsoft. And this will give more people a choice as most people here do realize that Microsoft will set pretty much everything on the system to default to use their products(IE, Search, etc...) With Dell being the most sold PC in the market, this will help with the MS everything that you will be forced to see on Vista.

Now, if Dell would install Firefox and REMOVE IE, as well as most other MS CRAP it would be possibly the best system. I will drink to Google taking down the evil empire.
Posted by acurism (14 comments )
Link Flag
You buy Dell, Dell sell you to Google; Google show your info. to sell Ad.
That's what google now are doing,,, Terrible
Posted by X-C3PO (126 comments )
Reply Link Flag
CNet ,Do Not del me again! "You buy Dell, Dell sell you to Google..."
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....
Posted by X-C3PO (126 comments )
Reply Link Flag
The Sunset of the Microsoft Era
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.
Posted by deep.shade (1 comment )
Reply Link Flag
agree with others, please give users the option to choose if they want all this stuff on their brand new clean machine or not!
Posted by robertrowshan (29 comments )
Reply Link Flag
 

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