Google launches a direct assault on Microsoft with the promise of a new PC operating system

New York, July 11, 2009 – THE announcement came as a humble blog post on Google’s corporate website late on Tuesday July 7th, but it delivers what is likely to be a dramatic shake-up for the information-technology (IT) industry. By promising to release, at some point later this year, an operating system for personal computers the online giant is launching a direct attack on Microsoft, the world’s biggest software firm.

The confrontation is likely to be momentous. Microsoft’s PC operating system, Windows, boasts a market share of nearly 90%. Although the firm’s empire has been showing signs of decline, it remains a dominant power. Yet industry watchers see a huge threat as the mighty internet company moves into new territory. TechCrunch, a leading technology blog, made it clear how vulnerable it believes Microsoft to be, reporting the news as “Google Drops A Nuclear Bomb On Microsoft”.

In reality it will be more of a slow explosion. At first Google’s Chrome OS, as the new software is called, will be targeted only at netbooks, the cheap and smallish laptops that are proving popular. The idea is to provide a compact operating system with a simple user interface that boots up in a few seconds and allows users to work securely and easily with web-based applications, such as e-mail and social networks. This is why the software is based on a stripped-down version of Linux, the popular open-source operating system, and comes with Chrome, the browser that Google released late last year.

And it will take a while for the program to be ready for prime time. “We have a lot of work to do, and we’re definitely going to need a lot of help from the open-source community”, writes Sundar Pichai, the Google executive in charge of the project, in the blog post announcing the new product. The first netbooks running Chrome OS, he explains, will not be available for consumers before the second half of next year.

Yet Google’s intention is clear. It plans to do what the now-defunct Netscape attempted when it launched its first browser in the mid-1990s: to make Windows obsolete and turn the browser into the dominant computing platform. Eventually Chrome OS will be used to power full-fledged PCs. All applications written for the software will be web-based and will work with other browsers that are compliant with the latest web standards (even those running on Windows). Chrome OS would also allow users to work offline and synchronize changes later.

Microsoft has not offered an official reaction yet. But the firm must have anticipated such a move. Google’s assault comes when the once almighty software giant is vulnerable. Windows Vista, the latest version of its operating system, has not been a success. Its forays into Google’s main territory, web search and online advertising, have not brought big gains. European antitrust authorities are also still pursuing Microsoft, which limits its ability to strike back at Google.

Yet it is much too early to count Microsoft out. It recently launched Bing, a new search service, which has taken some market share from Google. In October, roughly when Google will make Chrome OS available, Microsoft will release the next iteration of its operating system, Windows 7, a version of which is supposed to run well on netbooks. And the firm is spending billions on a “cloud”, a global network of huge data centers, which will rival Google’s infrastructure and allow Microsoft to offer all kinds of web-based applications.

Will there be a clear winner? Probably not in the foreseeable future. The pockets of both firms are simply too deep. And that is a good thing: the epic fight between the two giants promises to speed up innovation. And that is what the IT industry needs to overcome the recession.

From Economist.com

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