Dell's Google software test may hurt Microsoft

The Seattle Times reports:

Dell is testing software from Google and may distribute the programs on its PCs, a move that would be a blow to Microsoft.

The test includes a Google-powered Dell home page, Google desktop search and Google Toolbar, Dell spokesman Jess Blackburn said Tuesday. He declined to discuss a possible deal.

An agreement would underpin efforts by Google, the top Internet search engine, to expand beyond search and may threaten Microsoft's biggest businesses. Microsoft is building search into the next version of its Windows operating system and creating links to online versions of popular programs to woo users of rival services such as those offered by Google.

"Google is desperate for new revenue streams," said Matt Rosoff, an analyst at Directions on Microsoft, a Kirkland research firm. "It's definitely something Microsoft is concerned about."

Competition in the private sector.Can you say that about the public sector?