Google and Dell in software deal

Computer giant Dell and Internet search engine Google have reached a deal to install a version of Google software on Dell at factory level. The Dell computers will contain Google software including several personal computer applications, a Google toolbar and a co-branded homepage. Both firms will receive revenue from the deal, but details remain unknown. Google chief executive Eric Schmidt said that it was the first of several deals. Turning point Speaking to a group of investors during a Goldman Sachs Internet conference, Mr Schmidt said: "There is probably more to come." Dell made no comment. The agreement between the world's largest personal computer company and Google, comes after the two firms announced they would install Google's software package on Dell computers in February. Back then the two firms were rumoured to be considering installing Google software on up to 100 million new Dell personal computers after the software firm beat rival Microsoft in the deal, and Yahoo pulled out. The deal could mark a major turning point for Google and mark a serious threat to rival Microsoft. Microsoft and Google have adopted different business models. Instead of selling the software to make a profit, Google makes money by selling advertising to firms that want access to those who use its free products. Microsoft has identified this sort of software as a key threat to its business. Google shares rose by $1.74 closing at $382.99 on the Nasdaq, before slipping 99 cents in extended trading. Meanwhile Dell shares climbed 12 cents closing at $24.30 on Nasdaq, before rising 9 cents in extended trading.

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