Google Taps Dell for Search Appliance

In an effort to broaden its server business, Dell released details of a plan Wednesday to overhaul its server lineup, while announcing it had signed on Google to resell the systems. The PowerEdge servers would likely be the first to use Intel's new server processor, code-named "Woodcrest."

Google would use Dell servers for its search appliances, which it sells to businesses as a way to use the Mountain View, Calif.-based company's search technologies to sift through the large stores of data that most companies have accumulated.

The deal is a change from how Google operated the program previously. The company ordered parts from various suppliers and did final assembly of the $30,000-plus servers on its own.

Both companies have a standing relationship; late last month they reached an agreement to have Google software preinstalled on millions of new Dell computers. Among the software included would be a customized version of the Google Toolbar, along with its Desktop Search product.

Dell controls roughly one-fifth of the market for x86 servers, according to Gartner. The company has seen some erosion in market share, which could be blamed on its focus on low-end servers. In recent quarters, higher end servers with AMD chips have sold better, analysts say.