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Should Microsoft be afraid of Chromebooks?

For about a year, Microsoft has been under attack from Google, doing things like accusing the search giant of capitalizing on its users by "reading" their email to generate ads. Since then, there have been a number of various attacks on the search giant. The campaign is named Scroogled.

More recently, the target was Chrome OS, a Linux-based operating system that powers an ever-growing number of laptops. These devices, known as Chromebooks, are gaining traction in the market. Should Microsoft, with over 90% of the operating system ecosystem, be worried?

What it is

First, a quick word on what you get when you buy a Chromebook. Many have compared them to Netbooks, a once popular device that has since disappeared. That's arguably a fair comparison, given that some devices fall in the size range, like the HP 11. But Netbooks ran Windows, and that's not the case.

Chrome OS is basically a browser, but there's more to it. In fact, it has a desktop, complete with taskbar and system tray – you can even set a wallpaper. There are also offline apps that allow you to use parts of it even when you're out of range of an internet connection.

Sales

As I just pointed out, the software giant still dominates the desktop, but recently a report surfaced and caused a stir on the internet. He claimed that Chromebooks now account for 19% of laptop sales. This led to some confusion, many thought it was an end user figure, but in fact it was actually b2b.

It sounds better until you realize it's the very core of Microsoft's market. So the investigation should actually scare Microsoft.

The devices are also the best-selling laptops on Amazon, which tracks those numbers and makes them readily available on its website. In fact, the Chromebook currently holds three of the top five positions.

The OEM problem

Microsoft has many companies in its pocket to build computers for Windows – the latest version 8.1. But gradually, these once loyal OEMs are starting to branch out into the Chromebook arena. We've seen Dell, HP, Samsung, Acer, Toshiba and more release these laptops.

Should Microsoft be afraid of Chromebooks?

The next featured Microsoft's Ben Rudolph on the streets of Venice, California, a Chromebook in hand, asking various people if they'd like a computer like this. Needless to say, those the camera showed all said "no".

The bottom-line

Should Microsoft care enough about Chromebooks to warrant these ads? Probably yes, yes. We have covered the reasons that should give notice to the company. The sales that eat away at its main business model and its hardware partners are now diversifying into this area.

Are Scroogled ads the way to take control of the situation? Probably not. They serve little more than a joke with the tech press and turn out to be dishonest. Rudolph pointed out that you can't use Docs offline, which is wrong because there is an offline mode. In fact, it's Microsoft's Office Web Apps that don't work without a connection.

Microsoft and Windows aren't going anywhere anytime soon, but there are certainly reasons the company is showing early signs of concern.

What do you think?

Image credit:http://www.flickr.com/photos/gtmcknight/158431481/