Dell, Google in Software Deal

Google will reportedly pay Dell for the privilege of having a presence on as many as 100 million PCs for a period of three years, although the financial terms of the deal are not expected to be disclosed.

Any extra revenue streams are welcome at Dell, which has seen its sales growth slow in recent months. The Round Rock, Texas, company grew its top line by only 6% in the first quarter, compared with the double-digit sales growth it has recorded in years past.

Buying space on the world's largest PC maker's desktops could be worth up to several dollars per PC, estimates Roger Kay, president of market research firm Endpoint Technologies.

And given that the Google software will be bundled onto consumer PCs -- where Dell has struggled recently -- the extra revenue could make a big difference for Dell.

"A couple more bucks, that's the difference between making money and not making money in that business," says Kay.

Representatives of Dell were not available for comment.

Shares of Dell closed the regular session up 12 cents at $24.30; Google shares closed up $1.74 to $382.99.

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