Microsoft: HP's Searchbar Search is Over

Microsoft has entered into a significant new deal with HP to have the Microsoft Search Bar distributed as the default on all new HP consumer computers, starting in 2009. Here's the official press release from Microsoft.

The searchbar stakes are potentially very, very high. Most users don't mess with default settings, which means that the default search will be used for a *lot* of searching at Microsoft Live. Microsoft's overwhelming share of the browser market appeared to give them the advantage in this space early on. However Google's search results superiority combined with legal actions against what was a virtually monopoly by Microsoft's on the IE browser. These twin forces kept Microsoft in virtual search darkness, a very distant third to Google and Yahoo in search despite the fact that Microsoft controls the browser which still maintains over 80% of the browser market with Firefox (with Google as the default search) in firm second place.

HP Poised to Buy EDS

Hewlett Packard and EDS are expected to announce a deal soon where HP will aquire the data services company for about 13 Billion. This deal will make Hewlett Packard the number two global provider of enterprise technology services (IBM is number one). HP, however, is already the world's largest manufacturer of computers with no competition from IBM in that department because IBM sold their entire computer manufacturing business to China's Lenovo some time ago.

The move is likely to allow HP to consolidate several management functions as well as enlarge their services footprint considerably. This will make them more competitive with IBM, which is the ultimate goal of the buyout of EDS.