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Although the financial terms of the arrangement have not been disclosed, the assumption is that Google has paid Dell to put its software on its PCs. Until now there has been Google content on the Dell Start Page but this is the first time Google's growing roster of applications will appear.

The move represents a new phase in Google's growth rate as it will be the first time that Google has paid to have its software installed by default on new machines. It follows a setback to Google's attempt to limit the default search option in IE7. As Microsoft moves to put more of its own search technology onto Vista - both web and desktop - Google has decided to use other routes to get its software in front of users.

This is the third move in just over a week by Dell. As the company has started to kick start its growth again following disappointing sales figures, the company has signed a deal with AMD and announced plans to open two retail stores in the US.