Dell, Google Talk Chrome OS for PCs - TheStreet

ROUND ROCK, Texas (

TheStreet

) --

Dell

(DELL) - Get Report

is in talks with

Google

(GOOG) - Get Report

to run the search giant's

Chrome OS

on its laptops, a move which will further increase the pressure on

Microsoft

(MSFT) - Get Report

.

In an interview with

Reuters

, Amit Midha, Dell's president for Greater China and South Asia, explained that the computer maker sees Google's mobile operating system as a key technology.

"We have to have a point of view on the industry and technology direction two years, three years down the road, so we continuously work with Google on this," he said. "With Chrome or Android or anything like that, we want to be one of the leaders."

Dell CEO Michael Dell recently promised that

smartphones will never kill off PCs

, but he knows only too well that portable devices play a key role in the company's future.

The tech giant already works with Google's Android operating system, which features in Dell's

Streak

device, a form of smartphone/mini-tablet that was recently launched in the U.K. Dell's

Aero 3

, touted as the lightest Android smartphone, is also on deck. A note on the

AT&T

(T) - Get Report

Web site says that the phone will soon be available on the telco's 3G network.

Google's Android OS has already been

hammering Microsoft in the smartphone space

as the search giant extends its reach into new areas. A laptop deal with Dell would further increase the pressure on the software maker.

The Chrome OS, which runs on top of the Linux kernel, is a direct

challenge

to Microsoft's dominance in the PC market, and is also intensifying

competition

between Google and

Apple

(AAPL) - Get Report

. The new operating system, which will launch later this year, is an extension of the Chrome Web browser, and will initially be targeted at netbooks and tablets.

The battle between Microsoft and Google has multiple fronts. Microsoft has attacked Google in its own backyard through its

Bing

search offering, and Google has counter-attacked by

pushing into cloud computing.

Dell, which

struggled with weak PC sales during the recession,

recently saw its

first-quarter profit jump, although gross margins narrowed.

The company's shares rose 1 cent, or 0.07%, to $14.05 on Monday as the Nasdaq gained 0.75%.

-- Reported by James Rogers in New York

Follow James Rogers on

Twitter

and become a fan of

TheStreet.com

on

Facebook.