In a seemingly quick response to a partnership between rival Yahoo! and (former) large customer eBay, Google and Dell reached an agreement this week to begin the production of Dell PCs with Google software automatically a part of the computer's operating system.
Included in this software pack will be Google's Desktop software, which enables users to search their computer and the web for files and information, as well as customize news, sports, weather and a number of other "gadgets".
Also, the Google Toolbar will automatically be loaded on Internet Explorer 6.0 on new Dell PCs, as well as an automatic setting of a co-branded Dell/Google homepage, further engraining Google as the top search option of consumers.
This is a strategic blow to Microsoft, which has enjoyed the convenience of being the primary software option on PCs.
From day 1, Google has had to rely on comsumer downloading software themselves via Google Labs (for free), while Microsoft's strength has been in its high margins from fees for programs like the Microsoft Office Suite.
This announcement, partnerned with the launch of Google Calendar and the acquisition of Writely, a free online word processing program comparible to Microsoft Word, Google seems poised to give Microsoft an even greater run for its money.
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