Posted December 8, 2008 10:06 am by with 15 comments

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After failing to spend $45 billion to acquire Yahoo–in order to compete with Google–Microsoft finds itself with money burning a hole in its corporate pocket.

ZDNet believes that Microsoft will spend some of that money on securing a partnership deal with computer manufacturer Dell. A deal that comes with a welcomed BOGO (buy one get one) as Microsoft would actually replace Google as Dell’s default search provider.

My sources say that Microsoft has offered Dell sweet enough terms to entice the PC maker to replace its search-preload deal with Google with a comparable offering from Microsoft.

Neither Microsoft nor Dell are commenting on what they call “rumors and speculation” but that doesn’t mean negotiations are not ongoing.

$45 billion goes a long way towards buying market-share and Microsoft’s “sweeten the pot” approach is the same that Google used to secure many of its partnerships in the first place.

What do you think? Can Microsoft get this done or will Google go all out to prevent Microsoft from muscling in on Dell?

  • They’re going to have start putting their operating systems on for free, as linux will be killing them soon!

  • A default search engine is not so bad. That can easily be changed. I just hope they don’t fool dell into giving up on Linux.

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  • I think they will get it done without any hassle form Google. Google may try, but Microsoft (in my opinion) has a better chance.

    Remember, Microsoft is the provider of…? Yes, the operating systems most Dell computers run on, right? Well, at least this is how they are sold. Correct me if I am wrong…

    So, I even think, there is no need to be spending the $45 bil.

    They have something else they can play with.

    Both ways: Good for Dell. 🙂

    I used to work for Dell in Ireland. Lovely company.

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  • This will be interesting to see what happens, but if Microsoft is a serious as they seem to be they will do whatever it takes. If Google see this as effecting their “core products” they will have a fight on thier hands though.

  • Always try to dominating the world..

  • That would suck if they gave up putting Linux on boxes. I don’t think this is going to have much effect on Google’s search engine popularity as Microsoft’s search engine sucks. This seems like a waste of money, but Microsoft could prove me wrong.

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  • Why they wouldn’t spend on searhc technology instead?

    Low share reason – It’s results which suck and nothing anything else.

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  • Doesn’t surprise me.. seems all companies are starting to merge. Next will probably be Chrysler. I’m sure Linux will be safe.

  • Well I hope for competitions sake that they are able to go ahead with the deal. A complete monopoly would be a bad thing, and that is the way it looks to be heading with Google hoarding all the money.

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  • lol, @Matt Helphrey this is not about being a monopoly or not. It’s about who’s going to be the monopoly and Microsoft is just trying to get there first, after all it has some pretty good experience at that.

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  • Microsoft always try to be one hand. and @Mihai Secasiu A default search engine is realy bad i think.

  • I bet Microsoft can get it done, if it’s even an option.

    IMO it would be huge – most people I speak with have no idea why they use what they do for search and many other online services. It would be an instant increase in market share, they’d just need to make sure people didn’t have a reason to look for something else (by bettering their search results).

  • Good thinking by Microsoft. Dell controls a huge market of PCs and if Microsoft can get some of them to keep Live as their default then I guess, live’s share might actually increase.

    But the question is whats the point? They should improve their service first and once they are sure that they are ready to compete with the giant….then only they should do all these kind of deals to spread the word about their new improved engine.

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  • If this deal goes through, the search engine market will again see some rapid shifts in terms of market share. IE may actually improve!

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