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Five Reasons Why Microsoft Does Not Need to Worry About Google Chrome OS

Posted Jul 09, 2009 11:22am EDT by Joseph Tartakoff in Investing, Computers, Internet, Software and Services, Products and Trends

From paidContent.org, July 9, 2009:

Microsoft still hasn’t commented on Google’s plans to introduce an operating system of its own. An official statement is coming later today and we’ll post it here when it comes out. (Update: Microsoft now says it will in fact not comment). But there are lots of reasons why Microsoft does not need to be too concerned about Google’s foray into its home turf. Here are five:

Windows 7 is not Vista: Google’s operating system, which is initially targeted for netbooks, will only be available starting in mid-2010. By then, Microsoft’s new operating system, Windows 7, will have been on the market for at least nine months. Unlike its predecessor Windows Vista, Windows 7 has received rave early reviews. Also unlike Vista, Microsoft has promised that Windows 7 will work as well on netbooks as on high-end gaming PCs. As one Microsoft employee wrote on his blog today, “If Win7 didn’t have a SKU for Netbooks, this might even be interesting.” Microsoft will therefore be in a strong position to defend its turf than when Chrome OS comes out

Microsoft is building its own browser optimized to run web apps: Like Google, Microsoft understands that more people are running applications from within the browser—and is moving quickly to adapt its products to that reality. The company’s research arm, Microsoft Research, is developing a new browser called Gazelle, which it describes as a “browser-based OS” optimized to run web apps. Just last week, the company put out a summary of the principles behind the project.

Chrome OS will compete with Ubuntu: Chrome OS—which is open source—will further fragment the open source operating system market, since it will provide yet another option, writes Renai LeMay at ZDNet. This comes just as Ubuntu was becoming the dominant choice. He writes, “In this context, Google’s decision to create its own Linux distribution and splinter the Linux community decisively ... can only be seen as foolhardy and self-obsessive.” That could obviously benefit Microsoft.

Are consumers ready for a life on the web? Most of the user experience in Chrome OS will take place on the web, so it’s not likely that computers with the operating system installed will be able to run any Windows applications. That will likely limit adoption. Writes Bernstein Research’s Jeffrey Lindsay, “Google would need to rely on people to more fully adopt web-based services (a long-dated proposition), or for software developers to port their applications over to Chrome OS.”

Google’s track record outside of search is poor: Google has launched other high-profile attacks on Microsoft products, with only limited success so far. The company has gone after Office with Google Docs and Internet Explorer with Chrome. Both products may have generated lots of buzz but not much market share. And, of course, Microsoft is also going on the offensive, with its revamped search engine Bing, which directly targets Google’s core business.

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82 Comments

- Thursday July 09, 2009 11:27AM EDT

Joseph's reasoning is sloppy at best. This is not a convincing article.

- Thursday July 09, 2009 11:35AM EDT

-- Chrome will run in ARM based netbooks that will be much cheaper than Windows netbooks. -- Microsoft will have to price the netbook SKU according to that competition, which will mean a lot less money for them, even though they will get the lion share of the market. -- Microsoft is paranoid, for them having less than 98% market share is a disaster. So they will worry all right.

- Thursday July 09, 2009 11:46AM EDT

Google is new M$ but worse because of the privacy abuses.

- Thursday July 09, 2009 11:49AM EDT

Having a complete operating system isn't such a burden that I would want to spend my time with a watered-down web-only OS. The network is NOT the computer.

- Thursday July 09, 2009 11:50AM EDT

8.) I'm not convinced that cloud security is anti-hacking enough for me to turn all of my data over to an online repository/server.

- Thursday July 09, 2009 11:53AM EDT

Microsoft is going to be hard to beat. Apple and a few other have tied. Competition is always good for consumers. Shareholders may consider mergers. These stocks should continue to grow unless the My Doom virus kills all the fun.

- Thursday July 09, 2009 12:02PM EDT

Here we go again, tax the (filthy) rich people. Doesn't matter that the top 1% pay 50% of all income taxes, and that the top 10% pay 90% of all income taxes already!! The pain of added taxes must be wide spread. If you think that this situation in California is bad, just wait a few years. The impending problems facing the U.S. economy are going to dwarf this. Higher inflation, smaller industrial base, much higher debt ratio, higher unemployment...we ain't seen nothing yet.

- Thursday July 09, 2009 12:09PM EDT

Stay with MSFT .they know what they are doing..do not think you have seen all that msft is comming up with..buy now...hold 5 years..you wil be happy you did..thanks for reading. have a great day.

- Thursday July 09, 2009 12:16PM EDT

All of the world runs on MS Windows...Most industries keep all of there machines and SCADA systems running on a separate system not touching the web. Google = Search! There are already to many hobbyist OS's out there. Vista isn't that bad of an OS. They just keep trying to make it easier for the layman which just makes it difficult for everyone who knows. Also, Vista is a segue OS to push third party software developers into the future. Which, by the way, is why MS doesn't take major steps forward in development.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 12:18PM EDT

Wow, nice! Now we get to choose whether it is Microsoft or Google that will get to abuse our privacy.

- Thursday July 09, 2009 12:20PM EDT

If you ever tried the Chrome browser, you know Mr. softy has nothing to worry about. I was the first to try Chrome when it came out and first to get disappointed. Recently, I notice there is a googleupdate.exe program running even when I didn't use Chrome. I don't know why Google is installing garbage on my computer to slow things down without my knowledge. Then I went both Google and Bing for resolution. The solution was to de-install the proxyless and useless Chrome browser. Chrome OS? What a freaking joke! It it ever comes out, I'll would be the last to try it if I ever going to use it. Burn me twice, shame on me!

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 12:23PM EDT

Johnny Ike, you should be repoted for not being able to speak or think articulately. Second why do people post other topics on other subjects. This article has nothing to do with Bush, Obama or the economy. Comment only on what the topic is people!!!!

- Thursday July 09, 2009 12:26PM EDT

Chrome will only be a factor if Google can get it preinstalled on computers. Google plans to start with netbooks, which is good because they're small and cheap, and people will buy them even if they don't run MS Office. A big change will be that by next year, netbooks with ARM CPUs will be out. Supposedly they can get 12-24 hours of life on one charge. If so, this will be a competitive advantage for Chrome--there's never been a version of Windows that can run on an ARM cpu, so unless MS produces one, Chrome (and other linux forms) will have this market all to itself. One of the major factors holding back linux adoption is the unfamiliar user interface. Apple spent money and added a great interface to UNIX to create OSX. There's no reason that Google couldn't do the same with linux. And linux already has an impressive body of software available.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 12:30PM EDT

It is amazing how many dumb comments are posted on here. Windows will not increase the price of netbooks. Nobody abuses your privacy. What does George Bush have to do with anything ... MS is not a monopoly. Go buy a linux or a mac machine. Man people just post to hear themselves. Unfortunately, you do not listen to yourself and how dumb you really sound.

- Thursday July 09, 2009 12:32PM EDT

If I have a choice between Windows OS and Ubuntu for my new Netbook and the price difference is $50, I pick Windows OS. If I have a choice between Windows OS and Google OS for my new Netbook and the price difference is the same $50, I pick Google OS. I think it does have the potential of eating into the market share of both Windows OS and Ubuntu... At least for people using their Netbooks for mainly web browsing.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 12:33PM EDT

GW Bush is responsible for Google putting out Chrome.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 12:34PM EDT

Yes. Bush is responsible for everything that goes wrong including your challenged IQ. Bush, Bush, Bush. Cheney, Cheney, Cheney.

- Thursday July 09, 2009 12:35PM EDT

Google, focus on core... OS is a Microsoft World! This Chrome/OS distraction is exactly what Microsoft would like you to do... not worth the investment.

Yahoo! Finance User
Yahoo! Finance User - Thursday July 09, 2009 12:35PM EDT

I think Chrome's gretest weakness is the fact that it will be an OS that operates exclusevely online. That's a pretty big change from what ppl are used to with Windows + most ppl are not rdy to completely trust the internet -- on the other hand if Google manages to make Chrome 100% attack/virus proof that'll be another story.. @ Johnny Ike: Dude u're like the dumbest s*it on the i-net -- stop pretending to be a retard and stfu if you dont have a fckn clue saying something just for the sake of saying it is not owrth saying it at all

- Thursday July 09, 2009 12:38PM EDT

calibuddyred: You are an idiot. What has your stupid comment about Bush have to do with the subject at hand.

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