Chrome OS Is Critical to Google's Future Growth: 10 Reasons Why

By Don Reisinger  |  Posted 2010-12-13

Chrome OS Is Critical to Google's Future Growth: 10 Reasons Why

Google's Web-based operating system, Chrome OS, is getting considerable attention as of late, due to the company's recent unveiling of more of the platform's features. Google is testing Chrome OS on computers to see how it holds up as a standard operating system for users. There is some question as to whether or not it can eventually become a replacement for Windows. 

Regardless of the initial reviews of Chrome OS, it's becoming clearer than ever that the operating system is integral to Google's business. It might not be generating revenue for Google yet, but it's a long-term prospect for the search giant. It's the company's best hope for competing against Windows and stealing some of that operating system's market share. It's also potentially central to the future success of Google's advertising efforts. 

Simply put, Chrome OS is extremely important to Google's future business growth.

Here's why: 

1. The advertising opportunities 

The secret to Google's success throughout the years has been its ability to monetize its many successful platforms through the use of advertising. The company's Chrome OS will likely be no different. Therefore, Chrome OS could be extremely important to its operation. If it becomes popular and presents compelling advertising opportunities, Google could enjoy a whole new revenue stream to capitalize on. 

2. The Microsoft battle 

Although it might not be a Windows competitor out of the gate, Google undoubtedly has its sights set on Microsoft's operating system with Chrome OS. It makes sense. Windows is an unbridled success, and it's the main reason Microsoft is the company that it is today. But that also means there is a lot riding on Chrome OS. If it fails to captivate consumers, Google will have an extremely difficult time fulfilling its seeming desire to take Microsoft down. 

3. It bridges the gap 

Currently, Google's top product, Search, is available only through a Web browser or mobile app. With the help of Chrome OS, Google can bridge that gap in the computing space just as it has in the mobile market. Not only can it control how people search, but it can totally control how they get there. That's a key component in all this. And it can't be overlooked. 

4. Web-based operating systems are the future 

Although it might not happen soon, it's hard to debate the fact that Web-based operating systems are going to be the standard option for consumers at some point in the future. Slowly but surely, both the consumer market and the enterprise are marching to the cloud. Soon, a single provider (or two) will be dominating the OS segment of that space. Google wants to be that company for the sake of its future success. 

Chrome OS Is Critical to Google's Future Growth: 10 Reasons Why

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5. It keeps smaller competitors at bay 

Google might be the top company in the Web market, but that doesn't mean that a smaller firm with a great idea can't come around and steal the company's position in that space. After all, Google did that with its bigger competitors. But unlike those competitors, Google knows that small firms can be a threat. It also realizes that if it breaks into the Web-based OS market now and corners it, the search giant won't need to worry about smaller competitors. 

6. Google likes to cover the bases 

A quick glance at Google's Web efforts reveals that the company has the Internet pretty well covered. But it's missing the Web-based operating system that can combine all of its many products into a single, coordinated platform. With Chrome OS, it can now do that. But there is a lot riding on Chrome OS. If it fails, Google can potentially lose users to all of its other services. The ripple effect could be significant and have a negative impact on its operation. 

7. It helps its image 

Delivering a Web-based operating system does one important thing for Google that can't be underestimated: It helps the company's image. Right now, Google looks like the big, brooding company that reigns supreme over the Internet. With Chrome OS, it can look like the underdog that's trying desperately to take on Microsoft's Windows platform. That has helped Apple and Linux. And it should also help Google. 

8. Investor concern 

Google's stock price continues to be high as the search giant posts strong earnings quarter after quarter. But as with any other company, there is concern among investors about what Google can do going forward to find growth areas and expand its revenue potential. Chrome OS could be one of those areas. Google knows it, investors know it, and the last thing the company wants to do is allow that opportunity to pass. 

9. There is more competition in that space 

The cloud is quickly becoming crowded. It's filled with a slew of competitors, including Microsoft and Amazon, which could in some way cramp Google's future growth. That's precisely why it's so important for the search giant to win control of that space with Chrome OS to keep those other large companies from capitalizing on the growth of the cloud with more products of their own. Whenever there is strong competition, there is greater concern about the success of a product. 

10. Google has put a target on it 

With the announcement of Chrome OS and subsequent updates on what the platform will offer, Google has put a target on its new operating system. It must know now that every other competitor is gunning for Chrome OS and its own operating system won't be alone in that space forever. Now the pressure is on for Google. It has laid down the gauntlet. It needs to prove that it can deliver the best option for the most customers. 


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