Google's OS and the cloud a perfect match

Craig Deveson, managing director at Google partner, Devnet, said, the new Google Chrome OS will quickly take hold in corporate IT environments in Australia once it is released.

"We've been hearing about thin clients for years because it's a very appealing concept for corporations and business," he said Deveson.

"At the same time, we're seeing so many businesses in Australia looking towards cloud computing strategies.

"They're building web-based Intranet systems and applications and in many cases, all they need to do is get those applications out to the right users."

Deveson said its clients and the businesses it talks to move all of their applications and systems to run inside the browser.

"Once you've achieved that, why do you need the bloat and management headaches of having to support all of those traditional desktops," he said.

"Which cause you so much angst in terms of security, lost or corrupted data and application maintenance?"

Laurent Lachal, Open Source director at advisory and consulting firm Ovum, said Google generates most of its revenues from advertising but intends to diversify its revenue streams.

The new OS aims to boost other Google products such as Google Mail, Google Docs and Google Apps in one of the only markets that is still showing some health - netbooks.

"In a recent report entitled Netbooks: a Linux appliance opportunity, we identified two main sequential trends in the netbook market," said Lachal.

"The first is a shrinking netbook/laptop divide, with the average netbook price shooting up to $400.

"After a strong start in this market segment, Linux is now increasingly being distanced by Windows, although its performance is still outstanding compared to its overall performance in the desktop market."

He said Google Chrome OS could potentially enable it to regain some of its lost ground.

"The second trend is a reaction to the first, a back-to-basics backlash with ambition to deliver netbooks that are not only cheaper ($200 on average) but also designed as appliances/mobile Internet devices (MIDs) rather than would-be laptops," he said.

"In this market Google Android, which is also Linux-based, is making good progress.

"In response, Microsoft needs not only to push Windows 7 forwards but also to boost its Windows Mobile offering."

Lachal said, whether free (as many expect) or low cost, the new Google OS will challenge Microsoft's ability to maintain profit margins.

"It will also challenge Windows from a user experience perspective, which is key to Linux-based netbook uptake," he said.

"It could also be the starting point for a more integrated experience across Google applications/services and we expect it, like Android, to be linked to an online store of web applications."

He said with Windows 7 about to ship, it would have been better for Google to release, rather than simply announce, an alternative for the netbook market.