Google Chrome OS: The last few 20th century business models break down

Wednesday, 08 July 2009 14:07 Last Updated on Wednesday, 08 July 2009 14:07 Written by Eric Garland 8 Comments

So Google is coming out with its own operating system, which shouldn’t really surprise anyone. It will likely be lightweight, simple, cool and functional like pretty much everything they do. And also evident is the fact that Microsoft should now be hyperventilating, as this development takes direct aim at its aging business model while also pointing at the future of computing. chrome

Google is now threatening to bust the trust owned by the world’s richest man. You may remember a fantatastic, precient essay by Neal Stephenson entitled “In the Beginning Was the Command Line,” in which the author of Cryptonomicon and Snow Crash pointed out the near absurdity that the world’s wealthiest businessman made his money selling operating systems, as opposed to chemicals or railroads or minerals or something real and industrial. The untold riches in the production of user interfaces really did seem surreal at the time.

If you think about it, though, their business model was strikingly industrial in the Henry Ford, mass market vein. In the Golden Age of Microsoft, computers all hungered for standardization and interoperability if they were to function as something other than an electric paper weight. Whoever could forge that infrastructure could make stupid amounts of money – not unlike the railroad or the telephone. Not only did the infrastructure model pay off for Microsoft, they also harnessed Henry Ford’s mass production model, shipping out millions of individual boxes of “software” to individual users about the globe. It “scaled up” but at massive profit to the manufacturer.

And now you can officially say the 20th century is over. Even Microsoft, a digital age company, has succumbed to the new business models of the future. Google’s new operating system is harnessing all the aspects of the next generation business model. Google OS will be free, perfect for a variety of small, light devices intended to access the internet and cloud-based services. It’s not that you won’t be able to run Microsoft’s operating system and software tools – it’s just that they will no longer be the only game in town. Their competition will need to come from innovation, customization, and service rather than size, exclusivity, and scarcity that stems from limited technologies.

Record companies have learned this the hard way.

Newspapers are learning this the hard way.

Telecom is learning this the hard way.

No doubt, large and unwieldy, Microsoft will learn it the hard way as well.

Now…what about your industry? What will it need to learn? And will you be proactive, or will you be happier learning it the hard way?

Tags: business models, Google OS, infrastructure, Microsoft

S. Martin

Great post! Agree with you that companies/products moving into the future need to keep up with the innovation around them, not to mention changing customers and customer expectations (you mean, you want an OS that WORKS??). Very excited about this, its really time that Microsoft got a swift kick.

You can also add “Big Pharma learned/is learning the hard way” where the sales models of the “good ole days” are changing and sleeping giants will need to reorg and find innovative new ways to reach decision makers (who are also changing!)
Matthew Blanchard

This article represents this in a ridiculous manner. Not all or the majority of users want to just go on the net, use cloud based programs and the like. The home gaming market is huge, in fact I know most 14-15 year olds with a computer younger than 4 years old have probably downloaded an online game. Look at World of Warcraft. Google is developing for a niche market, it's not going to be the next big thing, it's going to be an OS that is wonderful for netbooks, but no so much for power users.
http://www.competitivefutures.com/blog ericgarland

Yes, and in 1992, the majority of executives didn't want to type their own letters, but computers eventually found their way to their desks.

And in 1994, the majority of business people didn't use email, it was just geeks and college kids.

And of course in 1998 downloadable music seemed impossible…think of the size of those .wav files! Only good for samples only – people will still buy CDs!

And can you imagine having your email on something OTHER than your hard drive? Who would trust that?

And who would ever keep their Rolodex of friends on a “Facebook”? It's just not how people run their social lives! It's too open – people like privacy.

You might be surprised what a “power user” looks like in five years. I know Microsoft and Google care deeply.
http://www.competitivefutures.com/blog ericgarland

I think anybody who has had Windows crash on them (99.99999% of the world, including Bantu tribesmen) is excited to see a game changer in the computer operating system market. Mac OS is clearly superior, but it's relegated to the tech snobs who like spending $1700 on a new axe. This is going to shift EVERYBODY to a new way of thinking, maybe even Apple. Luckily, Apple is already really good at massively-deployed digital applications – consider the multi-billion dollar iTunes Store. They'll be ready.

As for everyone else…I wonder how they will react to this?
S. Martin

Great post! Agree with you that companies/products moving into the future need to keep up with the innovation around them, not to mention changing customers and customer expectations (you mean, you want an OS that WORKS??). Very excited about this, its really time that Microsoft got a swift kick.

You can also add “Big Pharma learned/is learning the hard way” where the sales models of the “good ole days” are changing and sleeping giants will need to reorg and find innovative new ways to reach decision makers (who are also changing!)
Matthew Blanchard

This article represents this in a ridiculous manner. Not all or the majority of users want to just go on the net, use cloud based programs and the like. The home gaming market is huge, in fact I know most 14-15 year olds with a computer younger than 4 years old have probably downloaded an online game. Look at World of Warcraft. Google is developing for a niche market, it's not going to be the next big thing, it's going to be an OS that is wonderful for netbooks, but no so much for power users.
http://www.competitivefutures.com/blog ericgarland

Yes, and in 1992, the majority of executives didn't want to type their own letters, but computers eventually found their way to their desks.

And in 1994, the majority of business people didn't use email, it was just geeks and college kids.

And of course in 1998 downloadable music seemed impossible…think of the size of those .wav files! Only good for samples only – people will still buy CDs!

And can you imagine having your email on something OTHER than your hard drive? Who would trust that?

And who would ever keep their Rolodex of friends on a “Facebook”? It's just not how people run their social lives! It's too open – people like privacy.

You might be surprised what a “power user” looks like in five years. I know Microsoft and Google care deeply.
http://www.competitivefutures.com/blog ericgarland

I think anybody who has had Windows crash on them (99.99999% of the world, including Bantu tribesmen) is excited to see a game changer in the computer operating system market. Mac OS is clearly superior, but it's relegated to the tech snobs who like spending $1700 on a new axe. This is going to shift EVERYBODY to a new way of thinking, maybe even Apple. Luckily, Apple is already really good at massively-deployed digital applications – consider the multi-billion dollar iTunes Store. They'll be ready.

As for everyone else…I wonder how they will react to this?

Google Chrome OS: The last few 20th century business models break down

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