Microsoft and Sun Strike Web Search Deal

By Diane Smith
18:08, November 10th 2008
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Microsoft and Sun Strike Web Search Deal

Microsoft Corp and old-time foe Sun Microsystems Inc have reportedly reached a Web search deal that aims to chip away at the reign of Google Inc. Under the deal, the Microsoft Internet Explorer users who download Sun's Java technology platform will also have the option to download the MSN Toolbar and from there they will be able to access the company's search engine.

Microsoft reached a similar deal this year with Hewlett-Packard Co also, the world's largest PC manufacturer.

Microsoft’s deal with Sun “will expose Live Search to millions more Internet users” as Yusuf Mehdi, senior VP of the Online Audience Business at Microsoft, put it. Sun’s Java platform is required to view some Web sites. The toolbar Sun will introduce under the agreement will feature a built-in box for queries to Microsoft's Live Search as well as buttons to access MSN.

"We need to provide more volume to our advertisers," said Angus Norton, a senior director in Microsoft's Live Search group.

Microsoft is currently third in Web search after Google and Yahoo. The two behemoths have about 80 per cent of the Web search market between them.  

The deal comes as a bit of a surprise because the two companies have battled on many fronts. Sun was one of the most important opponents of Microsoft’s antitrust battle.

The financial details of the Microsoft-Sun agreement weren’t revealed. However, the deal comes as Sun is going through a tough period, financially. The company posted a $1.7 billion loss in the last quarter of fiscal year 2008. Sun has struck similar deals with Google and Yahoo in the past.



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