Google's operating system escalates Microsoft duel
Google Inc. is hoping to gain greater control over how personal computers work by developing a free operating system that will attack Microsoft Corp.’s golden goose - its long-dominant Windows franchise.
Google Inc. is hoping to gain greater control over how personal computers work by developing a free operating system that will attack Microsoft Corp.'s golden goose - its long-dominant Windows franchise.Skip to next paragraph
Subscribe Today to the Monitor
The new operating system will be based on Google's 9-month-old Web browser, Chrome. Google intends to rely on help from the community of open-source programmers to develop the Chrome operating system, which is expected to begin running computers in the second half of 2010.
The early versions of the Chrome operating system will be tailored for "netbooks," a breed of low-cost, less powerful laptop computers that are becoming increasingly popular among budget-conscious consumers primarily interested in surfing the Web.
That is a direct challenge to Microsoft, whose next operating system, Windows 7, is being geared for netbooks as well as larger computers.
The vast majority of netbooks already run on Windows, and that is unlikely to change unless Google can demonstrate the Chrome operating system is a significant improvement, said Forrester Research analyst Paul Jackson. He pointed out that many customers had returned the original netbooks that used open-source alternatives to Windows.
"It was not what people expected," he said. "People wanted Windows because they knew how to use it and knew how applications worked."
Google struck a confident tone in a blog posting late Tuesday night announcing its operating system. The Mountain View, Calif.-based company believes it can streamline the operating system to improve speed and reduce security threats.
"We hear a lot from our users and their message is clear - computers need to get better," wrote Sundar Pichai, Google's vice president of product management, and Linus Upson, Google's engineering director.
Microsoft hadn't responded to requests for comment through Wednesday.
Investors seemed to be betting on Google Wednesday as its shares rose $6.82, or 1.7 percent, to $403.45 in afternoon trading while shares in Redmond, Wash.-based Microsoft fell 29 cents, or 1.3 percent, to $22.24.
The success of the Chrome operating system will likely hinge on its acceptance among computer manufacturers that have been loyal Windows customers for years, said Matt Rosoff, an analyst for the research group Directions on Microsoft. "Most people, when they get a new operating system, they get it with their PC," he said. "I don't think most people think much about their operating systems."
If enough computer manufacturers embrace the Chrome operating system, it could weaken Microsoft while opening up new avenues for Google to persuade consumers and businesses to use its suite of online applications and other Internet services, generating more opportunities for Google to sell lucrative Internet ads.
Getting consumers and businesses to switch to computers powered by a new operating system won't be easy, as Google has learned from the introduction of Chrome. Google says about 30 million people are using Chrome, a small fraction of the Web surfers who rely on Microsoft's market-leading Internet Explorer.
Microsoft's Windows operating system has been even more dominant for a longer period time despite challenges from Apple Inc. and various systems based on Linux, the same type of open-source software that Google plans to use.