Google vs. Microsoft: The Operating System Battle - will Google win?

CNNs Coverage of the OS War between Google and Microsoft:

Google vs. Microsoft: What you need to know

In less than a week, Google announced an operating system to compete with Windows, while Microsoft announced that Office 10 will include free, online versions of its four most popular software programs -- a shot at Google's suite of web-based office applications.

The fight between Microsoft and Google is over who'll be seen as the world's most important tech company.

And not more than a month and a half ago, Microsoft unveiled its new search engine Bing, which it hopes will steal market share from Google and finally make it real money online.

From the news of it, it's a full-blown tech battle, complete with behind-the-scenes machinations to sic government regulators on each other.

It is, however, not a death match -- it's more of an fight to see who will be the King of Technology, since both companies pull in their billions through completely different siphons and are unlikely to severely wound one another any time soon.

Google pulled in $22 billion in revenue in 2008, 97 percent of which came tiny text ads bought by the keyword and placed next to search results or on pages around the web. Google makes a negligible amount of money bundling its online apps for businesses, charging $50 a head annually -- but mostly it just gives its online text editor, email and spreadsheet programs away.

By contrast, Microsoft sold $14.3 billion worth of Microsoft Word and PowerPoint and other business applications over the last nine months, making a profit of $9.3 billion. It made a further $16 billion in revenue in 2008 through sales of its operating systems, which range from XP installations on netbooks, to Vista, to Windows Mobile to its server software.

Google now plans its own range of operating systems, starting with Android, an open-source OS for small devices like smartphones, and Chrome OS, a browser-focused, open-source OS that will run on notebooks and desktops.

Read entire article on Microsoft v/s Google

Chrome OS - New York Times Coverage of Google Chrome OS Launch

Here are some parts of the article that appeared in NY Times (New York Times) about the launch of Google Chrome OS

"With the software, Google is mounting a blunt challenge to the dominance of Microsoft, whose Windows operating system runs about 95 percent of PCs. Google promises that its Chrome operating system, which will be available on computers in the second half of next year, will put an emphasis on speed, simplicity and security.

Google faces enormous hurdles. Computing giants like I.B.M. and Sun Microsystems have spent years trying to dethrone Microsoft, with little to show for it.

But if it gains traction, Google’s plan could undermine not only Windows but also Microsoft’s other multibillion-dollar franchise, Office. Google is trying to put the Web browser at the center of people’s digital lives, relegating complicated operating systems like Windows to a secondary role."

more from the same article...

"“We’re designing the OS to be fast and lightweight, to start up and get you onto the Web in a few seconds,” Sundar Pichai, a vice president for product management, and Linus Upson, an engineering director, said in a blog post announcing the project late Tuesday. “We hear a lot from our users and their message is clear — computers need to get better.”

The plan is part of Google’s bet that a huge shift in computing is under way. In Google’s view, Web connections will become so fast and browsers so powerful that most of the programs that currently run on PCs will be replaced by online applications. That would eliminate the need to install, upgrade and back up software. "

"Rather than buying bulky desktop computers, consumers have been turning recently toward small, low-cost laptops known as netbooks, which serve as little more than gateways to the Web. Google says its operating system will be initially aimed at netbooks, which are generally not powerful enough to handle the latest version of Windows.

Google’s fundamental business model, too, may play to its advantage. The company says it believes that making Chrome free to PC makers will be worthwhile because more people will spend more time online, using Google’s search service and its other Web-based applications like Google Docs, a Web rival to Microsoft Office. That will help Google make more money from advertising, which accounts for nearly all of its $22 billion in annual revenue.

That approach essentially reverses some of the dynamics used by Microsoft to crush Netscape. At the time, Netscape charged $50 for its Web browser, and Microsoft undermined its leadership by making its own browser, Internet Explorer, free. Now it is Microsoft that faces free rivals to both Windows and Office, its two biggest cash cows.

Under its model, Google could even afford to pay computer makers to install its software on their machines, essentially subsidizing their cost.

“If hardware is free and software is free, the only way you make money is off of services, and that is Google,” said Jim Zemlin, the executive director of the Linux Foundation."

Read the complete NY Times article here