ZDnet is reporting a new deal between Dell and Microsoft that will see Live's search toolbar preinstalled on new Dell PC's.
Neither Dell nor Microsoft has confirmed the deal, but ZDnet attributes the news to "sources familiar with the arrangement.
If the report is true, it's another small victory for Microsoft who recently announced the availability of a number of new and updated online applications in its Windows Live suite, as well as the hire of Dr. Qi Lu as President of their Online Services Group.
Having already displaced Google on Lenovo computers earlier this year, and again in June with the Hewlett Packard deal, Microsoft is clearly looking at OEM deals to grow its search share, which in October 2008 covered 8.5 percent of the market, compared with Google's 64.1 percent.

October 2008 U.S. Search Engine Rankings: comScore
The report also speculates that Microsoft is considering dumping Live and using Kumo as the new name for its search business.
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MS dont have any chance with Google..
Yes this is true, but we need changes on this planet, maybe this will be one...
Microsoft may not have a chance at Google, but I could see them stealing away percentage points from Yahoo. Searchers who use Google do so because they know its the best, I feel like people use Yahoo from convenience. Microsoft could take over the convenience market with this Dell plan.
Plus .. it gives them valuable data to improve their service ..
@chcameron - you hit it on the head! MS will be able to make inroads on the convenience market with moves like this.
Yes this is good move ,Microsoft is making considerable improvements and marketing strategies to improve its share .
This is a good move of Microsoft. They really sought for improvement so they did ways which are definitely effective.
microsoft is pathetic and so is dell. they cater to the idiot market. when are people gonna wise up and start rejecting microsoft for the defective liability it is.
I dont think that move of Microsoft will really help. People who regularly use Google Search, will not stop using it even if they have Live Search Toolbar installed in their browsers.
MS is not there yet but at least they are trying.
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Yes this is good move ,Microsoft is making considerable improvements and marketing strategies to improve its share .