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Should Microsoft Fear Chromebooks? Analyzing the Real Threat to Windows Dominance

For the past year, Microsoft has launched pointed attacks against Google, including the 'Scroogled' campaign accusing the search giant of scanning user emails for ad targeting. More recently, Microsoft's focus has shifted to Chrome OS—the Linux-based operating system powering a growing lineup of Chromebooks.

With Windows holding over 90% of the desktop OS market, should Microsoft be concerned about these affordable laptops gaining ground?

What Is a Chromebook?

Chromebooks are often likened to the short-lived netbooks of the past, especially smaller models like the HP 11. However, unlike netbooks that ran Windows, Chromebooks are built around Chrome OS—a web-centric platform that's more than just a browser.

Chrome OS features a full desktop environment with a taskbar, system tray, and customizable wallpapers. It even supports offline apps, enabling productivity without an internet connection.

Chromebook Sales Surge

Microsoft still dominates the desktop OS landscape, but recent reports have sparked debate. One claim highlighted Chromebooks capturing 19% of laptop sales—a B2B figure that hits at the heart of Microsoft's core market.

Consumer data reinforces this trend: Chromebooks dominate Amazon's top laptop rankings, occupying three of the top five spots according to the site's publicly tracked sales.

The Shifting OEM Landscape

Microsoft has long relied on OEM partners like Dell, HP, Samsung, Acer, and Toshiba to build Windows devices, including the latest Windows 8.1 models. Now, these same partners are entering the Chromebook market.

Should Microsoft Fear Chromebooks? Analyzing the Real Threat to Windows Dominance

Microsoft's response included a video featuring executive Ben Rudolph canvassing Venice Beach, California, with a Chromebook to gauge public interest. Respondents on camera overwhelmingly declined.

The Bottom Line

Chromebooks warrant Microsoft's attention. Surging sales erode Windows' business foundation, and OEM diversification adds pressure.

That said, the Scroogled campaign misses the mark. It's often dismissed by tech journalists as misleading—Rudolph's claim that Google Docs lacks offline support is inaccurate, as Chrome OS enables it. Ironically, Microsoft's own Office Web Apps require connectivity.

Windows and Microsoft remain dominant, but these early warning signs of concern are justified.

What do you think?

Image credit: Flickr/gtmcknight