There is an interesting and, in my opinion, historic battle unfolding around Operating Systems these days.
At one end, Microsoft is readying the next version of their OS: Windows 7. Windows 7 is nothing more than Windows Vista done right: more stable and polished. At the other end, Google announced Chrome OS, a Linux-based minimal operating system meant to run a web browser on a computer without any further sophistication.
Our position at INM clearly leans towards the latter side, not because we prefer Google’s logo to Microsoft’s but mainly because we had predicted that Operating Systems were becoming irrelevant commodities (see conclusion of “All aboard! The new Intel-based Mac is leaving the station; here’s how to switch platforms”) and that real challenges were moving away from the metal and closer to the mental. Our key argument is that, thanks to RIAs and technologies such as Adobe Flex, MS Silverlight and HTML 5, it is nowadays possible to deliver rich content and interactivity without the cost and hassle of desktop applications.
Ironically though, while Google’s core message is that an operating system ought to be small, subordinate to the web browser and mostly free; they are precisely drawing attention to the relevance on the operating system by discussing it in the media.
On the other hand, Microsoft is crafting a sophisticated pricing plan for Windows 7, with an array of colors and flavors ranging from Home Edition to Ultimate thus underscoring that the choice of the right OS, and hence the OS per se, matters.
Moving forward, I think there will be confusion and internal conflicts at Google, and ultimately Android will prevail as Google’s canonical operating system for all devices ranging from smartphones to tablets to small PCs (as well as yet-to-be invented small devices).
Windows and MacOS would obviously remain the OSes of choices for users of Photoshop, video editing and other high-end applications. But as the cloud becomes more reliable and people discover the true benefits of RIAs, most common applications will migrate to lightweight (and invisible) OSes, and only specialists would need to shop for heavier operating systems.
Microsoft is making a huge mistake by playing the pricing/licensing game. I think it will cost them consumer market share. They should have one version of Windows 7 (fancy/server stuff optional via the installer ) and it should have one price (e.g. $99).
Sophisticated pricing plans are used to make it difficult for consumers to compare prices (mattress and DBMS vendors are masters at this game) and thus to distort markets in their favor (competition relies on consumers being able to compare prices). But that tactic breaks down if the competition is charging $0. In this case, the consumer can add the opportunity cost of the non free solution (i.e. what they would have done with their money had they not bought Windows 7) to the value of the free solution. So Google, by giving away the OS and making money in other ways (SaaS, adverts, etc…), doesn’t have to deliver anywhere near as much value as Windows does to be the consumers rational choice.
To be fair to MSFT, one measure of the value of a software business is the to sum the cost to customers of switching to a competing product. Microsoft has always understood this very well and there are many businesses with huge investments in Windows. But it’s not the physical or software investments that will maintain the value of MSFTs business (Moore’s law takes care of that by depreciating the hardware to effectively $0 very quickly with software following not far behind), but rather the investment in human capital. As some European governments have discovered in trying to switch to Linux on the desktop, it’s very expensive to switch the typical user to a new and unfamiliar system and make them productive.
I completely agree. Normal users (lay-persons) have a convenience, a
ease in not switching to a new OS. I work in Germany and Italy and many (lay)people don´t even still know what Linux is. They buy a pc and there´s MCST´s OS on it, they take courses at school and these are with Windows. So they have their mind set on this, and it will take some time before this change..
I think that more simple to use system will be a winner – like always. The whole Windows success is based on its easy to operate features. But lately Windows become growing and growing harvester that want to operate everything at the same time. In my opinion OS should be easy and witch small requirements at the same time. So I wonder – which system will be better? I don’t know but sure I’m happy that Microsoft will have some competition after all. Maybe that will give these guys some boost to create something that is not just another cover of Windows 95.
Hey, i know this problem with Linux. I only work with Microsoft and i don´t know what Linus is. I know this name, but not what it is.
I am using windows 7 and really it is really good. Maybe it looks like windows vista but it is stable and it doesnt use so much Ram.
Sure people won´t change their OS – and that´s the point why microsoft will stay the leader in this market. To be honest i don´t know linux but there´s also no need to switch systems. When it comes to this i prefer to pay my 99€ or something and stay with the system i´m used to.
Microsoft launches one operating system after another one. is this necessary? I don’t know. DO you really need vista? I Don’t. XP does it all.
Linux with kde interface is a very good alternative!
For Windows Vista user purpose I can only say: “It only may be get better”
I don’t believe that there is gonna be a real war of operating systems. I think that Chrome will not dominate the market and it will even not be in first version real competition for Windows.
Google’s core message is that an operating system ought to be small, subordinate to the web browser and mostly free; they are precisely drawing attention to the relevance on the operating system by discussing it in the media.
Thanks a lot for this information! it is very useful
I completely agree.
Useful article… thx for posting
Thanks Vahe…. Super Posting!
Interesting article. I quite agree with you.
Finally Windows 7 is there.
nice post. Im still pretty sure that google’s plan doesnt involve dominance in the os sector. since no matter what os people use, they end up using google in their online activities, so there’s no need to further push dominance in that sector.
[...] The Business Case for Cloud Computing A Historic Battle of Operating Systems [...]