Microsoft ties up with rival Sun to take on Google

11 November 2008

Microsoft has reached a deal with archrival Sun Microsystems in a desperate bid to unseat internet search giant Google from its high perch.

Under the agreement, Microsoft will bundle its MSN tool bar with Sun Microsystems' ubiquitous Java software in the US. For Microsoft, the deal is a symbolic coup, because it partly replaces a high-profile agreement Sun struck with Google in 2005 to bundle the Google tool bar with Java.

Microsoft, which has been ruling desktop PCs for years, is now trying to grow its reach and power in the Internet market. The software major has unveiled a number of initiatives in recent times to take on the vast superiority of rival Google in the search market.

Despite all the initiatives, including offering cash-back to users who use its Live Search to buy products, Microsoft has seen its share of the search market continue to fall, while Google's share has continued to rise. Now, Microsoft is hoping to piggyback on Java's popularity. (See: Microsoft to buy internet search with Cashback to 'get Google')

The Java software, which is needed to view some websites, is on 800 million desktops worldwide - more than 9 out of 10 personal computers connected to the internet - and gets tens of millions of downloads each month, according to Sun. The companies did not disclose the financial details of the pact. Sun has had similar deals with Google Inc. and Yahoo Inc. in the past.

Internet Explorer users who download Java for the first time or who update existing versions of the software will be given the option to also get the MSN tool bar, which includes a field for Live Search. Users who choose to download the tool bar also will be asked whether they want to switch their default search engine to Live Search.

Brad Goldberg, general manager of Microsoft's Search Business Group, said the deal with Sun was part of the company's strategy to increase the distribution of Live Search. He noted that Microsoft had also reached a deal with Hewlett-Packard to put a Microsoft tool bar on all of its new computers. That deal goes into effect in January. Under another agreement, a Microsoft tool bar is also preloaded on new Lenovo computers.