Chrome OS Designed To Start Microsoft Death Spiral

Al writes "Technology Review has a feature article that explores the business strategy underlying Google's decision to develop its Linux-based operating system, Chrome OS. Writer G. Pascal Zachary argues that Eric Schmidt has identified a sea-change in the software business, as signaled by Microsoft's recent problems and by the advancement of cloud computing. Zachary notes that Larry Page and Sergey Brin have pushed to develop a slick, open-source alternative to Windows for around six years (with the rationale that improving access to the Web would ultimately benefit Google), but that Schmidt has always refused. While developing Chrome OS is a significant gamble for Google, Zachary believe it will exploit Microsoft's historical weakness in terms of networking and internet functionality, forcing its rival to better serve Google's core business goals, whilst initiating its own steady, slow-motion decline."

Comments

Entirely Net-Based?

[steve_thatguy]

I don't know the tech details of ChromeOS yet, but I get the impression it's mostly if not entirely net-based. I think that's going to leave Microsoft with a fairly comfortable marketshare even if it takes off because, to some extent, many people want *their* files and *their* processing to be solely under *their* control. There's something to be said for having your own house with your own yard and fence versus living in an apartment building with millions of other people. Please correct me if I'm wrong.

Re:Malodorous Headline

[Desler]

or pinch Adobe into supporting Flash on Linux

They've supported Flash on Linux for quite some time now since they started doing simultaneous OS releases. Linux was even the first to get experimental 64-bit support.

Re:Start the Microsoft death spiral? What again?

[Desler]

Microsoft has been in a death spiral for years.

Huh? They've increased revenues for 5 straight years now at around 10%. And they're last year net income grew 25% over 2007. Yeah, that's a real death spiral. Gee, I wish I could run a company in a "death spiral" that generates 60 billion in revenue and almost 18 billion in net income.

Re:Hogwash

[AndrewNeo]

And not only that, but the entire Xbox 360 platform would have to die off with it, since all development is done in Windows and Visual Studio.

Re:Start the Microsoft death spiral? What again?

[moogsynth]

Huh? They've increased revenues for 5 straight years now at around 10%. And they're last year net income grew 25% over 2007. Yeah, that's a real death spiral. Gee, I wish I could run a company in a "death spiral" that generates 60 billion in revenue and almost 18 billion in net income.

I'm sorry, but 2007? Really? I can't tell if it's just a typo or what, but either way, how about some up-to-date news on that? Is that too much to ask?

Microsoft reported a disappointing 29 per cent slump in fourth-quarter profits after a year in which its revenues fell for the first time ever since 1986. The company's earnings sank to $3.05 billion, or 34 cents per share, from $4.3 billion, or 46 cents per share, in the same period last year. Now the company plans to go on a 'crash diet' programme where it plans to curtail all expenses to go slim.

Re:Hogwash

[sexconker]

Just like Google!

Re:Hogwash

[y_axis]

MARGE Homer quiet. Acquire the deal.

Pedant alert... Marge: Homer quiet! You'll queer the deal.

Re:Hogwash

[sznupi]

What, thousands of man-hours for games? Look around you, majority of people don't play games (or at least you wouldn't call them PC games - Peggle, Solitaire, etc.; that is a typical PC game)

Nowadays majority of time of average user is spent in the browser. Heck, I even see a trend of listening to music "from the cloud". Convince them that writing (no, they don't need MS or even Open Office, formatting with Tab, Space & Enter, styles unknown to them) or presentations (they are a travesty usually anyway...) can be also done in a browser...and there's your market for Chrome OS.

Having said that, I also think that Chrome OS won't succeed on "large" machines. But I also suspect that those using today cheap laptops for all their (pretty basic) needs will, in some part, shift towards using smaller form factor.