are reportedly joining forces to attract more business customers, further evidence of the growing ties between the two companies.
Bloomberg News reported Tuesday that Dell is in talks to provide servers for the Google Search Appliance, which companies use to find information in their internal records. Officials from both companies couldn't immediately be reached for comment.
The report isn't a surprise considering that Mountain View, Calif.-based Google and Dell, based in Round Rock, Texas, already are working closely together and have hinted that more deals were likely. Last month, the companies said some Dell PCs would come preloaded with a toolbar from Google, which enables people to do Internet searches from their desktops. Officials from both companies couldn't immediately be reached for comment.
Google is eager to use Dell to attract more business customers while it steps up competition with
and tries to diversify beyond search.
A deal with Google may give a boost to Dell's server business, which according to market researcher Gartner suffered an "an atypical drop" in revenue during the first quarter. Dell ranks third in the server market on that basis behind
Last month, Dell said it would miss analysts' estimates for the first quarter in part because of its decision to cut prices.
Shares of Google, which has dropped 6% this year, rose $15.55, or 4% to $389.89. Dell rose 11 cents to $25.61. Its shares have dropped 14% this year.