Microsoft Getting More Aggressive To Compete Against Google Search; Partners With HP

Posted Jun 2, 2008

“Every Dell machine we buy at home that comes with the Google toolbar, it’s not a good day in my family when that happens,” stated Steve Ballmer at a Microsoft gathering on May 1.

A couple decades ago, Microsoft Corporation (NASDAQ:MSFT) signed a deal with IBM that gave them the leg-up for operating system market-share against Apple Inc.  And then in the 90’s, Microsoft developed their own browser called Internet Explorer which became the default with all Windows operating systems giving them the leg-up against Netscape’s browsers.

Today Microsoft signed a deal with Hewlett-Packard Company (NYSE:HPQ) to spread Live Search Toolbar which could give take some marketshare away from the Google Toolbar.

Through this deal, HP will install copies of Live Search Toolbar on all Internet Explorer browsers and the toolbar will link to various HP services such as Snapfish, a photo website that HP acquired in 2005.

Google has similar deals with Dell Inc. and the Firefox browser.  About 40% of those who surf the web use the browser default search as their primary search choice according Angus Norton, senior director at Microsoft Live Search.

This deal comes shortly after Microsoft pulled away from the negotiation table for acquiring Yahoo!

Information Source:
[1] Associated Press: Microsoft signs search distribution deal with HP by Jessica Mintz