An excerpt/article from Good Morning silicon valley: :) :). Have a good
read.... M$ is probably in big trouble!

The five scariest words in tech, as we’ve noted before, are “Google has
entered your market,” and Tuesday those words hung over Microsoft
headquarters as clearly as if the search sovereign had hired a plane to
sky-write the message above Redmond. The day began with Google finally removing
the beta label from its Apps productivity
suite<http://googleblog.blogspot.com/2009/07/google-apps-is-out-of-beta-yes-really.html>,
signaling to enterprise customers that it should be regarded as a mature,
cloud-based alternative to Microsoft Office. And the day ended with Google
announcing an offensive long the subject of rumors and predictions, a strike
at Microsoft’s core franchise, the Windows operating system.

As outlined by 
Google<http://googleblog.blogspot.com/2009/07/introducing-google-chrome-os.html>,
its Chrome OS is not so much a direct assault on Windows as a flanking
maneuver, an effort to redefine “operating
system”<http://www.techcrunch.com/2009/07/08/google-chrome-redefining-the-operating-system/>and
“desktop” for an age of Web-oriented computing. Using the Chrome
browser
in a new windowing system on top of a Linux kernel, the open-source OS will
run on both x86 and ARM chips and will initially show up on netbooks in the
second half of 2010. The application platform will be the Web itself,
allowing developers to create apps just as they do for any
standards-compliant browser. “Speed, simplicity and security are the key
aspects of Google Chrome OS,” said company execs Sundar Pichai and Linus
Upson in a blog post. “We’re designing the OS to be fast and lightweight, to
start up and get you onto the Web in a few seconds. The user interface is
minimal to stay out of your way, and most of the user experience takes place
on the Web. And as we did for the Google Chrome browser, we are going back
to the basics and completely redesigning the underlying security
architecture of the OS so that users don’t have to deal with viruses,
malware and security updates. It should just work.”

Many of those who had been anticipating a Google grab for the desktop
figured the vehicle would be Android, an OS created with mobile phones in
mind but also adaptable for netbooks. But Google’s post says these are two
different animals: “Android was designed from the beginning to work across a
variety of devices from phones to set-top boxes to netbooks. Google Chrome
OS is being created for people who spend most of their time on the Web, and
is being designed to power computers ranging from small netbooks to
full-size desktop systems. While there are areas where Google Chrome OS and
Android overlap, we believe choice will drive innovation for the benefit of
everyone, including Google.”

For the moment, the air is full of
questions<http://technologizer.com/2009/07/07/eleven-questions-about-googles-chrome-os/>.
Are consumers willing to embrace cloud-computing? Will there be provisions
for offline use and storage? What about user interface, peripheral support,
non-Web applications? What’s the potential effect on Google’s relationship
with 
Apple<http://deals.venturebeat.com/2009/07/08/after-chrome-os-how-long-can-the-google-apple-friendship-last/>?
How about the antitrust implications? Will Google follow through with
intensity, or will it end up just dabbling? The list goes on. The air, at
least in the blogosphere, is also full of excitement, a Colosseum-crowd
eagerness to see a full-on OS battle with the prospect of the current and
unloved champion getting bloodied.

So is Microsoft shaking over a new challenger in this arena? Not
likely<http://blogs.zdnet.com/Howlett/?p=1065>.
There’s many a mile between press release and product, and potholes aplenty.
As some Redmond spokesman is likely to contend any moment now, while cloud
computing and Web-based apps will become increasingly important, there
remain among businesses and consumers strong reasons to have a heavy-duty OS
on a local machine. Windows 7 will be rolling out soon, and the early
notices give the company reason to hope for a favorable reception. Microsoft
is expected to confirm its release to manufacturing as early as Monday at
its annual Worldwide Partner
Conference<https://partner.microsoft.com/global/40018508>,
and there may also be more
evidence<http://www.neowin.net/news/main/09/07/08/microsoft-set-to-respond-to-google-os-next-monday>that
Microsoft, too, is trying to reconceptualize the browser and the OS.

And there better be some serious R&D money flowing in that direction,
because while Microsoft may keep its hold on the desktop, the desktop as
currently defined will play an increasingly smaller role in our broader
computing and networking environment. We may well need one machine in the
house with an OS complex enough to handle big jobs or specialized tasks or
particular hardware, but the growth is going to be in all those other
screens that we’ll carry on our person or in a briefcase or from room to
room, devices that don’t need to run Photoshop or edit video, devices that
just need to be able to talk to the Web and to each other. Behemoth that it
is, Microsoft needs to be already well into the process of adjusting course
for this or it’ll end up still cranking out big heavy gas-guzzlers after the
demand has moved on to less expensive, more efficient compacts.
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