Google software is to come already installed into all Dell computers, the internet giant has announced.
Several PC applications including a Google toolbar and co-branded homepage will be placed into Dell machines at the factory stage of production, challenging Microsoft's dominance of the software market.
While it is believed Google are paying Dell for the deal – up to as much as $1 billion, some rumours have suggested – neither firm said they would reveal any financial details of their arrangement, but remained positive about its implications for future business.
"It's a really big deal for both companies," commented Google's chief executive, Eric Schmidt.
"It's very good for them and very good for us," he said.
Today's announcement came a few hours after another internet collaboration was announced, between Yahoo! and eBay. In an attempt to undermine Google's confirmed dominance at the top of the internet tree they revealed the details of a "multi-year strategic partnership" which would see a number of joint ventures between the two.
Observers have pointed to the impact Google's partnership with Dell could have on Microsoft's hold over the software industry.
Where before customers would have automatically used Microsoft's search services, now they are more likely to use the pre-installed Google software instead