Google Rings Dell's Bells

It may be Dell (NASDAQ:DELL) celebrating its 22nd anniversary, but Google (NASDAQ:GOOG) insists on blowing out the candles. In a story that was first reported by The Wall Street Journal, the Internet search leader and the PC behemoth are teaming up to place Google browser toolbars and other free Google software applications on freshly shipped Dell computers. Google will also be powering Dell's start page.

Google will be paying an undisclosed amount for that right, though it's probably well worth it.

Computer makers like Dell and Hewlett-Packard (NYSE:HPQ) make their PC real estate available to software and online service providers, and it's usually a win-win situation. The box makers get some sweet high-margin royalties for their bundling efforts and the providers are the welcome beneficiaries of landing a captive audience on the proper side of the bubble wrap.

This kind of deal is clearly an affront to Microsoft (NASDAQ:MSFT) and its knack of packing as many proprietary applications as possible into their pre-installed operating systems.

Toolbars are critical to search engine companies because the simplicity of having an empty search box at the ready is a convenient and ideal alternative to hitting a search engine's landing page. And search engines aren't the only companies with toolbars; Amazon.com (NASDAQ:AMZN) has a toolbar for its A9.com search engine, but it also has one available that tracks website popularity for Alexa.com.

The Google deal comes on the heels of Yahoo! (NASDAQ:YHOO) and eBay (NASDAQ:EBAY) hooking up in a multiyear deal to help grow the reach of Yahoo!'s own toolbar.

All of these giants. Suddenly so nimble. Everyone seems to be pairing up at the sock hop, and Microsoft is starting to look awfully lonely there by the punch bowl.

Dell, eBay, and Amazon areMotley Fool Stock Advisorrecommendations. Microsoft is anInside Valuenewsletter service selection.Whatever your investing style, the Fool hasa newsletter for you.

Longtime Fool contributor Rick Munarriz does have a pair of Gateways in his house, though he favors working on his HP computer and Dell monitor. He does not own shares in any of the companies mentioned in this story. The Fool has a disclosure policy. Rick is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.