Windows Live to Get First OEM Bundle

Sources wouldn't identify the PC manufacturer, but Dell is unlikely to be the partner. In May 2006, Google cut a deal with Dell for bundling its software and services. Gateway, HP and Lenovo are likeliest candidates for the bundling deal, with the latter two offering biggest benefit to Microsoft, because of their global reach. The initial bundling would be for the Live homepage and Windows Live Toolbar, according to sources. Live search also is expected to be included in the deal. Other products or services could come in the future.

Sources couldn't comment on financial terms, if there are any. Software and services vendors typically pay PC manufacturers a bounty for placement on the Windows desktop, or—in the case of Vista—the Windows Welcome Center. Google ponied up $1 billion for its bundling deal with Dell. Even if the deal were with a smaller OEM, such as Gateway or Sony, Microsoft could claim some advantage in its competitive position with Google. The Dell deal made Google the default home page and bundled in Google search and software, including its search tool bar. Microsoft's bundling deal also would benefit the fledgling Live portal. Hitherto, PC manufacturers choosing a Microsoft portal had MSN as the choice.

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News source: MS-Watch

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2 Comments

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If they want Lenovo, they can have 'em. Those PCs are gross anyway.

Gateway's alright I guess. Never really messed with them.

HP I wouldn't be suprised if you guys have seen how much ad $#!% comes with HP/Compaq computers.

Either way, I never really used any homepage that comes with anything. As for Google, well, I heard about it from school as "the thing to use" so now I'm a Googlist. Maybe Microsoft can fork over money to school's to get teachers to push students for "Windows Live" instead? Meh.

Interesting, although I think that ultimatley its a big price to pay an OEM for such a limited amount of advertising and exposure.

Anybody that knows what they want from a their new computer will just remove the software or change the home page and replace it with ones they prefer.

Although Micorosoft would not be willing to just lay down and let google dominate the OEM market.