Google Attacks Microsoft’s Core With Chromebook


Google recently announced the launch of its Chromebook, which will be Samsung and Acer notebooks installed with a Chrome web browser. The Chrome web browser will essentially serve as a bare-bones operating system for users to access email and spreadsheets directly on the web rather than storing software such as Outlook or Word directly on PCs.

We believe that the Chromebook launch is directly aimed at Microsoft in the PC operating system and productivity software market as well as Apple, which uses its own operating system for the Mac and iPad.

What’s at Risk for Microsoft?

Microsoft derives about 75% of its stock value from Windows operating system and Office suite of products, according to our estimates. This indicates how important it is for Microsoft to protect these businesses.

Although consumers and businesses are accustomed to Microsoft’s products over the years, and more advanced programs will need the support of a full operating, this could serve as another shot across the bow from Google in its intentions to move toward a web based environment. In the near-term, we expect the impact to be negligible for Microsoft; nonetheless, Google could threaten Microsoft’s core businesses in the long term.

Google’s solution could be cheaper, faster and enable users to avoid annoyances with traditional PC’s such as long boot up times and staying on top of updates and new software versions.

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