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Microsoft Live Search to be distributed on HP computers

In a move to compete with search leader Google, Microsoft has struck a deal with the largest PC manufacturer in the world. Hewlett-Packard has agreed to distribute Microsoft’s search engine Live Search on all new consumer computers starting in 2009. Microsoft Internet Explorer will be the default browser on all HP PCs, and it will include a special toolbar that utilizes Live Search. President of Platforms & Services Division at Microsoft Kevin Johnson said in a press release, “This is the most significant distribution deal for Live Search that Microsoft has ever done, and we are very pleased to be partnering with HP to help bring Live Search to millions of consumers across North America.”

The deal should give the flailing search engine some legs. Many home computer users do not customize their browsers or search tools, and with Live Search as the dominant option, it will likely see a lot more traffic. The site takes a minimalist approach to design, much like Google. The page is an uncrowded white with very few distractions, a nod to Google and a far cry from Yahoo!. Search options include web, images, video, news, maps, and even a celebrity “popularity” ranking called xRank. xRank, currently in beta, calculates the number of times a celebrity or notable person has been searched and puts them in order of frequency. The site tracks celebrities, musicians, politicians, and bloggers. When this article was written, the top personalities included blogger Perez Hilton, Barack Obama, and rapper Lil Wayne.

The Live Search toolbar is meant to take advantage of Silverlight’s powerful user experience capabilities. A Microsoft press release explains the plans for Live Search’s future with HP. “The toolbar will provide HP with customization capabilities within the buttons on the toolbar, providing quick and easy access to a variety of online services and tools, such as Snapfish by HP, the company’s online photo service, and HP customer support.” The deal seems to be a mutual one, with Live Search promoting other HP products. Snapfish, for example, is a growing photo storage, sharing, and development service that could benefit from outside promotion. I wouldn’t be surprised to see ads and promotions for Snapfish on Live Search.

The other piece of the Live Search puzzle is the necessity to compete with Google’s search engine dominance. It’s no surprise that Microsoft needs to step up their game in the search market. According to a recent New York Times article, Google’s share of the search market rose to 61.5% in April, while Microsoft lags behind with just 9.1% (Yahoo! takes 20.4%). In addition to the competition for the search market, though, Google also presents a challenge when it comes to deals with electronics companies. Dell and Google have a long-standing agreement to install Google products as defaults on Dell PCs. The deal is set to expire in 2009.

Microsoft is clearly trying to make up some ground in the search world, and HP can be a huge help in this regard. Gimmicky services like xRank aren’t likely to gain long-term users, but standard-issue search toolbars are a much more significant strategy. If the deal is a long-lasting one, we may see Live Search gain ground against Google and Yahoo!.

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