Dell is replacing its existing search deal with Google and is in the process of negotiating a new deal with Microsoft. The new will reportedly see new PCs sold with Microsoft's Live Search toolbar pre-installed, according to online rumours.
The deal comes as a plus for Microsoft, which is trying to expand its share of the online search market. While neither company has yet confirmed the deal, a ZDNet report says Microsoft has offered favourable terms and that the deal will go through, citing sources familiar with the matter.
Dell first signed with Google in 2006, loading the firm's search toolbar to PCs and hosting a co-branded Dell-Google internet homepage. In 2007, Dell extending its partnership with Google to offer tailored Google 'search machines' through its small business and corporate sales channels.
News of the Microsoft deal come days after the software giant appointed Yahoo!'s former search technology boss, Qi Lu, as its leading digital executive. While last month, rumours emerged claiming Microsoft plans to rebrand and relaunch Live Search in early 2009, with Live.com being turned into a social hub for users to access email, calendar and photo services.
In October Microsoft announced it was setting up a three-site European Search Technology Centre in a bid to increase online search development. This came as Microsoft also released a new prototype search service, called U Rank, which lets users reorder, edit and share search results. In Q3, Microsoft saw a 19.3% increase in first-page advertisers for its Live Search site, according to an AdGooroo report, however Google remains the dominant market leader.
For Dell, the new deal comes as the firm aims to cut more than USD3bn in costs by 2011 by imposing a hiring freeze, offering employees voluntary buyouts and asking workers to take up to five days of unpaid leave.
