"An article at SearchEngineWatch states that Google and Yahoo have become as almost parts of the operating system, a 'layer' above Linux, Windows or Mac OS. Another article at Kottke.org says that Google is building a a huge computer with a custom operating system that everyone on earth can have an account on. Some people predicts that, after Gmail, Google could start a new instant message service or even its own electronic currency." [Slashdot]
If they get many millions of users using any one of them, they'll be in fine shape, and my naysaying will be proven wrong. Their lead in top-notch searching capabilities got them many millions of "eyeballs" (as they were called during the Internet boom) but search isn't enough to keep those eyeballs forever because there is nothing to stop people from using the first comparably good competitor that comes along. The other services described in the Slashdot entry quoted above are much more sticky. The question remains "Can they convert enough users to these other services before Microsoft chooses to make something at least as good and build it into Windows?" The "Google operating system" is an interesting idea. Again it's something Microsoft can do -- it already has the code needed for running Windows apps remotely. After working on scalability, which I'm sure they are working on already, it could sell access to a massive server network running that service.
It keeps coming back to the question of how Microsoft will choose to respond. Google needs to create these kinds of services, but that is not a sufficient condition for achieving their aims. They also need Microsoft to choose not to respond directly using capabilities that are well within Microsoft's reach.
However, Microsoft wants to stay as big as it is, and get bigger. Lower-priced competition from the likes of Google and Lindows will probably force the prices that can be charged for operating systems, whether the apps are run locally or remotely, waaay down, probably greatly decreasing Microsoft's income. Google may be able to end up with a fine business -- though much smaller than Microsoft's current business -- if they can convert users.
As a side note, Transpose is now making use of a virtual dedicated server at Hard Hat Hosting. For $10.49 per month, gives us our own virtual Linux box supplying email and other services. Especially when we consider the fact that maintenance is up to Hard Hat, it is very significantly cheaper than running a box in our offices for those services. We are very happy (so far) with our decision to use it.
If Google had offered a similarly-priced similar service, we probably would have gone with it rather than Hard Hat, just because we would assume that a company the size of Google would be a bit less likely to go out of business and leave its customer's hanging.
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