Skip the navigation
News Analysis

Analysts: Google has muscle for long-term battle with Microsoft Windows

Upcoming Chrome OS is latest weapon in Google's ongoing 'guerilla war' with Microsoft

By Sharon Gaudin
July 8, 2009 04:18 PM ET

Computerworld - As Google Inc. acknowledges that its engineers are working on an operating system for netbooks and PCs, analysts say it's the company in the best position to take on Microsoft Corp. and its vaunted Windows software.

In a blog item posted Tuesday night, Sundar Pichai, vice president of product management at Google, said the company is working to deliver the new Google Chrome OS in the second half of 2010. Noting that Google's engineers are "rethinking what operating systems should be," Pichai said the Chrome OS will be lightweight and open source.

It's a bold move for any company to tread in a market that has so long been stubbornly held in Microsoft's grip. Others have tried and failed to make a noticeable dent in Microsoft's worldwide share of the operating systems market. But Google, which would be considered the Goliath in most industry duels, has the financial muscle, the engineering might and the industry clout to actually put up a fight with an industry powerhouse like Microsoft, analysts said.

"I think they are fighting a guerilla war with Microsoft, with the goal of chipping away and gaining more market share over time. And this is well within their capabilities," said Dan Olds, principal analyst with The Gabriel Consulting Group. "It's also important to remember that Google doesn't need an OS to support its revenue stream. They have lots and lots of revenue from their advertising bread and butter. That means they have staying power and that's critically important in this market. If anyone is going to take on Microsoft successfully, Google has the resources, engineering, and time to do it."

Ezra Gottheil, an analyst with Technology Business Research, said a lot of companies have the technical prowess to build the operating system, but lack the financial muscle needed to go head-to-head with something as entrenched in global enterprises and individual homes as Windows.

Net Applications Inc., which tracks Web site activity, reported that the Windows OS had an 87.75% market share in May.

"Can Google do the deals and get the distribution and the mindshare to compete? Can they put it over the top?" asks Gottheil. "There are very few companies that have what Google has in terms of audience, PR, money and the capability to deal seriously with major vendors. That does distinguish them from other candidates."

Gottheil was also quick to note that Google won't steal large chunks of operating system market share from Microsoft anytime soon. Enterprises are too focused on legacy systems and continuity to look for an immediate major change. Microsoft should own that market for quite some time, he added.

Google will first focus on individual users shopping for new netbooks or light-weight PCs that are easy to use and integrated with today's online life.

Michael Silver, an analyst with Gartner Inc., noted that Google has the name brand and clout to have doors opened to them in the industry. And that's going to come in handy because they'll need to convince software makers to write more and more robust applications for Chrome OS.

"Google has already been successful on some fronts, like search, where Microsoft has had problems playing catch-up," Silver said. "Google had really shown Microsoft how to do search. And they have a lot of money and good brand recognition. Certainly, they have a vision that is different and disruptive and innovative, so they certainly have as good a chance as anyone, if not better."

Read more about E-business in Computerworld's E-business Topic Center.



Additional Resources
Forrester Consulting - Optimizing Users and Applications in a Mobile World
WHITE PAPER
Solving application issues over the WAN requires careful consideration. Based on their independent research, Forrester Consulting offers recommendations on how to tackle application performance issues, insufficient bandwidth and the inability to quickly restore users in a disaster.

Read now.

Security KnowledgeVault
WHITE PAPER
Security is not an option. This KnowledgeVault Series offers professional advice how to be proactive in the fight against cybercrimes and multi-layered security threats; how to adopt a holistic approach to protecting and managing data; and how to hire a qualified security assessor. Make security your Number 1 priority.

Read now.

Cut Communications Costs Once and for All
WHITE PAPER
New IP-based communications systems are being deployed by small and midsized businesses at a rapid rate. Learn how these organizations are enabling faster responsiveness, creating better customer experiences, speeding office or mobile interactions, and dramatically reducing existing communications costs.

Read now.

E-business White Papers
Smarter Commerce is redefining value chain visibility
Smarter Commerce is redefining the value chain in the age of the customer. It starts with putting the customer at the center of...
IBM Synchronizes its Commerce 2.0 Strategy with 'Smarter Commerce' Initiative
On March 14, IBM announced "Smarter Commerce", a strategic initiative that addresses the surging market for Commerce 2.0 solutions that take advantage of...
Proof Positive - Extended Validation SSL Increases Online Sales and Transactions
With the threat of identity theft and other types of fraud rampant on the internet, many consumers are reluctant to release their details,...
Overcome Top 7 Admin Challenges of Active Directory
As Active Directory's role in the enterprise has drastically increased, so has the need to secure the data. Gain insight on creating repeatable,...
Insiders Can Ruin Your Company. Take Action.
Did you know that 80 percent of threats to an organization come from the inside? The threat from insiders is often overlooked in...
All E-business White Papers
E-business Webcasts
Optimizing Networks for the Cloud
Join guest speaker, Rohit Mehra, IDC Director of Enterprise Communications Infrastructure, to explore current trends, discuss best practices for optimizing Data Center and...
Apps QuickStart Series Part 2: Designing and Deploying SQL Server on VMware vSphere
Download this webcast to learn about the design considerations for virtualizing SQL workloads, performance and scalability information and high-availability options, as well as...
Apps QuickStart Series Part 1: Designing and Deploying Exchange 2010 on VMware vSphere
Download this webcast to learn the virtual hardware design considerations for Exchange 2010, deployment using the building block approach, options for high-availability and...
Customer Spotlight: How IPC The Hospitalist Company Implemented Oracle on VMware
Have you been looking to hear about customer's experiences with the new VMware vCenter Site Recovery Manager product? View this webcast to learn...
Virtualize Business-Critical Applications with Confidence
Virtualizing business-critical applications has become a key focus for organizations as they move along their virtualization journey. With the launch of VMware vSphere®...
All E-business Webcasts
Newsletter Sign-Up

Receive the latest news test, reviews and trends on your favorite technology topics

Choose a newsletter
  1. View all newsletters | Privacy Policy
IT Jobs