Dell Taps Google As Hardware Reseller

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Dell Taps Google As Hardware Reseller

By: David Utter
2006-06-07

The search appliances Google markets for enterprise use will come from Dell instead of being built by Google out of parts from assorted vendors.

Dell Taps Google As Hardware Reseller

Global PC market leader Dell (DELL) Computer has a new outlet for its latest PowerEdge systems. A deal reported by the Wall Street Journal noted those systems will go on sale from Google (GOOG) for its enterprise search market.

The total enterprise search market represents about $350 million in annual sales, and Google has sold over 4,000 of its search appliances to companies that want to have Google's search acumen available for their internal networks.

While it is not a large market, it does represent an image boost for Dell. S&P equity analyst Scott Kessler commented in a Bloomberg report that "Google is trying to come up with creative ways to penetrate the enterprise. Companies like partnering with Google because still to this day people are under the impression that there is some fairy dust associated with the company's name."

The fairy dust lifted shares of both companies yesterday, Google up 15.55 to 389.99 and Dell up 14 cents to 25.61. In after hours trading, quotes from ECN showed Google continued to move upward, to 390.75 while Dell gave up 11 cents of its gain.

This deal gives Dell a high profile market for machines containing Intel's (INTC) new "Woodcrest" processor. Intel has claimed that Woodcrest will deliver better performance while lowering the power consumption it needs.

Intel may not be fully placated by the new deal, in the wake of Dell's agreement with (AMD) to add AMD chips to Dell's server line. The German publication ComputerPartner quoted an Intel executive who said the company was surprised and disappointed at Dell's choice of AMD Opteron processors.

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Tags: Dell, Google, Intel, AMD

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About the Author:
David Utter is a staff writer for InternetFinancialNews and WebProNews covering technology and business.


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