SAN FRANCISCO (AFX) -- In what's likely to be the first in a series of deals, Google Inc. has reached a partnership pact with Dell Inc. to have its software bundled on Dell personal computers, according to Google CEO Eric Schmidt.
As part of the relationship, Google would become the default search engine on Dell personal computers, said Schmidt, during an on-stage interview by Goldman Sachs analyst Anthony Noto at the investment bank's Internet conference in Las Vegas.
Additionally, Google's desktop-search software, which seeks out content on a computer rather than on the Web, will also be incorporated into the Dell computers.
'Both companies share in the revenue,' said Schmidt, responding to Noto's question about the financial terms.
Even though a partnership was announced Thursday, it appeared that Google and Dell had already partnered to create a Dell home page powered by Google.
The deal between Google and Dell could help the search-engine giant maintain its search dominance over Microsoft , which plans to launch a new operating system with an integrated search feature later this year. Google has argued that Microsoft is limiting consumer choice by making it easier for consumers to use the MSN search engine over others. Earlier this month, the Justice Department ruled that Google's concerns were unfounded.
For Google, the Dell partnership secures its placement in front of Dell customers. For Dell, the agreement is an opportunity to boost revenue from software shipped on new computers. This story was supplied by MarketWatch. For further information see www.marketwatch.com.