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Robert McGarvey

Google's Own Chromebook: A Slap Across the Bow of Microsoft

Written by Robert McGarvey
11/29/2012 82 comments
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The drumbeats are loud. Google, reports filter out of Asia, is preparing to manufacture its own Chromebook, to be branded Google and/or Nexus. The blunt question: Is this dumb or smart on the part of the Mountain View, Calif.-based company?

I am typing this on a Chromebook and what strikes me is this: At a glance, the only brand I see is Samsung, which made this device.

Close the device and the top cover says, "Samsung." A badge says, "Chrome." There is nothing that says, "Google," not on the top or bottom of the machine and not when the display is open.

Google's name does not currently appear anywhere on the exterior of the Chromebook, something that would change if it makes its own hardware as rumored.
Google's name does not currently appear anywhere on the exterior of the Chromebook, something that would change if it makes its own hardware as rumored.

Slapping the Google name on every device just might be a brilliant move, suggest some experts -- but maybe just as important is that this is “a chance to stick a thumb in Microsoft’s eye,” said Adam Hartung, managing partner of consulting firm Spark Partners. “Microsoft has never been this weak.”

After all, the debut of Microsoft's Windows 8 has been met with much griping. The developer's Surface tablet launch received indifferent yawns. And does anybody care about Windows phones?

Add up the Microsoft flubs and what emerges is an open door for Google into the enterprise, said Hartung. The Google bluelight special is the Chromebook, an extraordinarily well-priced netbook. The top-of-the-line model retails for $449, and a smaller model sells for $249. Add an enterprise license for Google Apps -- at $50 per year per user with many discounts available -- and the fully loaded price cannot be matched by would-be Microsoft challenger Apple. And Windows-based netbook deals would struggle to keep pace with that all-in price.

First question: Will Google’s steadfast hardware partners stay the course, or will they grow angered by the company’s rumored foray into manufacturing, much as Acer has threatened Microsoft over the Surface tablet (where Acer said Redmond’s own hardware was like "hard rice" -- as in, “not so easy to eat”)?

The shrewd bet is that Samsung, which has carried the load with Chromebook, honestly could not care less. Chromebook sales totals, never released, are thought to be incidental.

Meantime, it is in a bed of conjugal bliss for Samsung and Google, at least regarding mobile phones, where Samsung has ridden Android to become a formidable rival to Apple. Samsung is not going to shake that relationship. Neither will Acer nor Asus, which have also manufactured some Chromebook models. The few pennies they have earned from Chromebooks just aren’t worth aggravating Google.

Which brings us to the big question: Should a CIO take the plunge into Chrome OS?

Hartung, in an interview, raised what has to be the worry on any CIO’s mind -- even one who is faced with upgrading an enterprise from Windows XP to Win 8 and quite possibly junking a range of peripherals and computer hardware that cannot make that journey. “How committed is Google to the Chromebook and Chrome OS?” he asked.

The company has a long history of terminated initiatives that, although once promising, eventually got the stink eye by Larry Page, and were buried in the basement. These include everything from a clean power initiative through Google Wave and Buzz. The company’s executives repeatedly proclaim that Google is an advertising company and this can only cause more uncertainty on the part of any CIO contemplating a plunge into a Google-branded Chromebook.

But, just maybe, suggested Hartung, winning a lot of enterprise sales does not matter anyway. Maybe what matters is simply jabbing -- and jabbing more -- at a confused Microsoft. “This is an historic opportunity for Google to deepen the rivalry,” said Hartung.

If this is a game of high-stakes corporate chess and if Google’s plunge into an enterprise hardware play prods Redmond to double down on its enterprise desktop and laptop businesses -- when probably it should be focusing on mobile, which is almost certainly the new enterprise frontier and where Google is sprinting into a real lead over Redmond -- just maybe it doesn’t matter if Google in fact is only dabbling in hardware.

Not when the real and only game is pin a tail on the dying Microsoft. And not when this feint prods Microsoft to defend a front Google may, in fact, have little interest in. At least that’s a theory.

— Robert McGarvey has been online and writing about the Internet for nearly 25 years.

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nimantha.de
IQ Crew
Thursday January 31, 2013 10:16:50 PM
no ratings
Keveend: go for a chrome book :) just kidding . I think and feel HP is the best but others like Dell to is catching up
keveend
IQ Crew
Saturday January 26, 2013 10:23:32 PM
no ratings
Apple's share is rapidly falling isn't it? I can remember it was something around 600 dollars when the new iPhone came out but now according to siri it's something around $450. But wouldn't a low price version be popular among developing countries? Where I live, it's something to own an iPhone. If a low priced version comes out, everybody will buy it. Here your phone represents how well off you are.
aum007
Thinkernetter
Thursday January 24, 2013 12:20:03 PM
no ratings

Keveend,

I have my doubts that this will help.

Apple has to work very hard to regain lost ground today.

Plus they have to get over the Image they have today(as an exclusive/High-End) IT Provider.

Easier said than done.

keveend
IQ Crew
Thursday January 24, 2013 10:15:22 AM
no ratings
Well I read on yahoo that Apple is rumored to be releasing 3 iphones before the end of this year. These rumors it seems are coming from a very reliable and unwavering source. Do you think this is the approach that they should follow to meet out the competition that constantly challenges them? One out of many reasons for releasing 3 iPhone models is to release an iPhone that doesn't weight much on your wallet.
aum007
Thinkernetter
Monday January 14, 2013 3:20:55 AM
no ratings

Keveed,

If you look at how the pattern(of Cellphone consumption) is in the rest of the world-Where The Consumer buys the Phone (without Carrier subsidies);Apple will always struggle to capture most of the Middle-Tier and Lower-end consumers.

Even in US;T-Mobile has now fired the First Salvo(by refusing to subsidizing Phones further);If this model catches on with the Big Two[AT&T and Verizon];Apple will find the Going very,very tough in the future unless they are prepared to cut Prices BIG to compete with the likes of Samsung and Nokia[Who now have phones for each and every Price Spectrum].

Unless they figure out a way to lower the cost of Device Manufacturing even further[Which is why they are moving some production back to the US today] and then cut prices correspondinly[While still maintaining their fat Profit Margins].

Regards

Ashish.

keveend
IQ Crew
Sunday January 13, 2013 10:30:06 PM
no ratings
Yes. In terms of price, Apple has a lot to learn. Their products are too expensive and users really don't want to pay that amount especially when they can get another mobile phone for a fraction of the price. When they are comfortable with their phone, they won't think of changing to apple again.
aum007
Thinkernetter
Saturday January 5, 2013 6:29:06 AM
no ratings

Kevened,

I Disagree.

If this were'nt the case;Android today would not be the No.1 Mobile OS.

At the mid-range of Phones too,Samsung,Nokia and RIM(yes RIM) continue to compete very,very well with Apple(especially on cost).

That is the major reason why Apple is forced to consider selling last generation for much-much lower than current Generation phones(inspite of the risk that they will cannabalize on existing phone sales).

This is the way the Wind is blowing today.

keveend
IQ Crew
Saturday January 5, 2013 1:26:50 AM
no ratings

Haha..... That's really funny.( I mean the video)

keveend
IQ Crew
Saturday January 5, 2013 1:21:43 AM
no ratings

I certainly agree with you. The lack of flash in Apple products is definitely a drawback. But the thing the consumers like about Apple is the fact that it's relatively simple to use when compared with other mobile operating systems. That's the main reason consumers choose to stick with Apple despite the hefty price they have to pay for it's products. Also the AppStore is too restrictive. But it is good in a certain way. You can be pretty sure that the applications you download are not malicious.

pcharles
IQ Crew
Saturday December 29, 2012 1:18:05 PM
no ratings

We'll see if it happens.

They've been rumored to be close to a big partnership for some time now. Just no official confirmations yet.

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