WSJ.com - New Tech Alliances Signal More Scrambling Ahead: "The Dell-Google alliance potentially cuts into Microsoft's most coveted and important partnership with a computer maker. By increasing the amount of its software in Dell PCs, Google squeezes onto a stage where Microsoft has long been the lead player. As the world's largest PC maker by number of machines, Dell has been arguably Microsoft's most important distribution channel for its most important software, the Windows operating system and Office business applications. Those two products are Microsoft's largest source of profit and revenue.
Microsoft says it sees the Google and Dell deal as an expansion of options for PC users. 'Customers are going to have choice,' Mr. Varma says, when asked if the deal threatens Microsoft's position in PC software."
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