Microsoft is chasing both Google and Yahoo on the search front. According to comScore, Google owned 63 percent of the U.S. Web search market in August. Yahoo grabbed 19.6 percent, leaving Microsoft with a mere 8.3 percent.

While some analysts think Microsoft will eventually purchase Yahoo, the company is making search deals for its MSN property. A search-distribution deal with Sun will offer the MSN Toolbar, powered by Microsoft Live Search, to U.S.-based Internet Explorer users when they download Sun's Java Runtime Environment (JRE).

The deal means Internet Explorer users downloading JRE can opt for one-click access to Live Search features on the toolbar, as well as news, entertainment, sports and other MSN network content. Users would also gain direct access to Windows Live Hotmail and Windows Live Messenger.

Microsoft's Broad-Scale Goals

Yusuf Mehdi, senior vice president of the online audience business at Microsoft, called the agreement with Sun another important milestone in Redmond's strategy to secure broad-scale distribution of its search offering. The potential, he explained, is significant.

"With the vast array of Java software-based Web applications that are downloaded every month, this deal will expose Live Search to millions more Internet users and drive increased volume for our search advertisers," Mehdi said.

With more than 6.5 million Java software developers around the globe, Java is one of the most widely available and popular software platforms. It is already present on 91 percent of Internet-connected PCs worldwide. JRE is one of the highest-volume consumer downloads on the Web, with tens of millions of downloads each month.

Rich Green, executive vice president of software at Sun, said his company's goal is to provide Java users with compelling and immersive business and consumer solutions and value-added solutions from software partners. In this case, Sun believes Microsoft fits that bill.

"Our customers expect top-quality products when they choose to download technology from Sun," Green said, "and we are confident that they will find great value in both Microsoft's MSN Toolbar and Live Search."

A Wait-and-See Proposition

This is potentially a big deal for Microsoft because the overwhelming majority of computers run Java and updates are pushed to users, according to Greg Sterling, principal analyst at Sterling Market Intelligence. (continued...)

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