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"As the careers of numerous writers, singers and businesspeople demonstrate, the true test of creativity isn't the first hit product. It is coming up with a second success.
Google, despite its huge success, is still a one-hit wonder. After spending $6 billion on research and development in the past three years, its efforts to expand beyond its paid-search gold mine haven't yet led to another money spinner.
That history should make investors skeptical about Google's plans to launch a computer operating system using the Chrome name.
Certainly, it will add to the competitive pressure that is gradually eroding Microsoft's stranglehold on the market. But Google already has launched an operating system called Android. It is designed for various devices including, like the new Chrome, cheap "netbook" laptops. Launching another, separate system will be confusing. There isn't a guarantee how widely embraced the new product will be, especially by computer makers.
And despite consumer complaints about Microsoft software, dislodging Windows from its dominant market position would likely take years. In the government and commercial market, which accounts for a majority of PC sales, 70% of applications require Microsoft Windows, Gartner analyst Michael Silver estimates. That limits how quickly users can switch operating systems.
Google's efforts should maintain pricing pressure on Microsoft. Facing competition from Linux, Microsoft is selling a cheaper version of Windows in the netbook market.
Just doing its part to crimp Microsoft's profits, at a time when the software giant is spending heavily to boost its share of the search market, may be enough to make Chrome worth its while for Google."
Source: Chrome May Not Shine for Google - WSJ.com
Google, despite its huge success, is still a one-hit wonder. After spending $6 billion on research and development in the past three years, its efforts to expand beyond its paid-search gold mine haven't yet led to another money spinner.
That history should make investors skeptical about Google's plans to launch a computer operating system using the Chrome name.
Certainly, it will add to the competitive pressure that is gradually eroding Microsoft's stranglehold on the market. But Google already has launched an operating system called Android. It is designed for various devices including, like the new Chrome, cheap "netbook" laptops. Launching another, separate system will be confusing. There isn't a guarantee how widely embraced the new product will be, especially by computer makers.
And despite consumer complaints about Microsoft software, dislodging Windows from its dominant market position would likely take years. In the government and commercial market, which accounts for a majority of PC sales, 70% of applications require Microsoft Windows, Gartner analyst Michael Silver estimates. That limits how quickly users can switch operating systems.
Google's efforts should maintain pricing pressure on Microsoft. Facing competition from Linux, Microsoft is selling a cheaper version of Windows in the netbook market.
Just doing its part to crimp Microsoft's profits, at a time when the software giant is spending heavily to boost its share of the search market, may be enough to make Chrome worth its while for Google."
Source: Chrome May Not Shine for Google - WSJ.com