Google software could be pre-installed on PCs from Dell, which could place a lot of Google’s alternatives to Microsoft on millions of personal computers by default.
If Dell does get that Google software on its hardware, the leading PC maker could end up earning in the range of $1 billion in Google fees over a three-year period. The Wall Street Journal reported on the behind-the-scenes negotiations happening between the two companies.
No deal has been formally set at this time. Should it come to pass, it could prove to be the motivation that prompted Google to assemble its Google Pack, an assortment of software currently available for download. The various software packages, including the Firefox browser, Google Desktop, and Picasa, could easily supplant Microsoft software.
The Journal’s report recounted a meeting at Google headquarters, where Google reps complained to their Microsoft counterparts about Internet Explorer defaulting to MSN Search with no easy way to change that behavior.
A current preview version of IE 7 does make it easier to add other search options to the browser. However, Google has paid both the Mozilla Foundation and Opera Software to be the default search option on their respective browsers, a move that has not garnered public complaints from Microsoft about being excluded.
Should Google distribute its software with Dell PCs, there could be a significant issue to interest its shareholders. The Journal noted how “Google cited distribution deals for its software as one of the main reasons for a 47% climb in sales and marketing expenses in the fourth quarter of 2005, compared with the third quarter.”
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David Utter is a staff writer for murdok covering technology and business.
