Chinese search giant Baidu is partnering with Intel’s China subsidiary to develop Internet applications for a variety of computing devices.
Intel Corp. and Internet search engine Baidu.com have signed a memorandum of understanding to develop search applications for Intel platforms in a deal that could have important branding and technology implications for the two companies in China’s high-stakes online market.
According to the MOU, the two parties will cooperate in advancing Internet search applications for laptops, handsets and PC in the digital home environment, coupling Intel’s server platform with Baidu’s backend search systems to achieve optimized performance and operational stability.
The chipmaker is already Baidu’s server platform provider.
"In addition to PCs, our users will soon be able to access Baidu search services on their handsets and home devices," said Jerry Liu, Baidu’s chief technology officer.
Baidu, a Chinese-language search service, faces mounting competition from global search heavyweights, including Google and Yahoo.
The partnership aims to capitalize on Baidu’s popularity and enhance Intel’s campaign to bring digital-media sharing into the home.
Baidu is the most frequently used search engine in China with an enormous user base. Its high traffic volume requires the highest standard of performance and stability in its server platform. Intel is pleased to work together with Baidu to provide optimized search performance and exciting search experience to end users, said Thomas M. Kilroy, Vice President of Intel Corporation and General Manager of Digital Enterprise Group.
With regard to server platform, 80% of the current enterprise servers are all based on Intel Itanium 2 processor or Intel-Xeon processor. The cost- effective and innovative server platform of Intel will surely provide powerful backend support for hundreds of million users of Baidu.
Baidu is basically viewed as a direct competitor to Google’s growing aspirations in China. The Shanghai-based startup is widely viewed as having a better search engine for Chinese text; however, its ability to search the international web pages lags behind Google.
Analysts said the deal would have little immediate impact on the online presence of Baidu, although it could boost its technological prowess.
I do not think it will have any significant revenue impact to the Baidu Company, said J.P. Morgan China Internet analyst Dick Wei. I think it is a long term agreement that will help Baidu search results and performance in the long run.
Baidu is committed to providing the best way for people to find information.
“Intel is the global leader in silicon technology and has played a critical role in enhancing Internet user experience. We are pleased to join hands with Intel in making Internet search more convenient and fun for people on their wireless devices and home appliances.”
Baidu has a slightly better search engine in Chinese because they use a different algorithm that accounts for the fact that Chinese characters are usually better understood in combination, said Sage Brennan, an internet analyst with Pacific Epoch in Shanghai. "It knows that you are looking for a combination of two characters or three characters for example."
“There is some evidence to show that Google is more popular among the elite, or the more educated internet users, while Baidu has a broader spectrum of users," he added
Intel is also Baidu’s backend server platform provider. ”A high performance, high stable and high scalable server platform is very important to Baidu’s powerful search engine system. Intel has been a reliable long-term provider and partner,” said Jerry Liu.
In Taiwan, meanwhile, Intel has been working with electronics makers in a campaign for standard components and thus less-expensive notebooks.
The two parties will rely on their respective strengths in technology to develop optimized Baidu search applications for Intel platforms, and facilitate implementation on PC, laptops, handsets and home appliances, although details were vague, with no financial value specified.