Price

Google still hasn’t said how much Chrome OS machines will cost, but there are a couple things to remember: First, the operating system is free, so netbook manufacturers can dodge the licensing costs of Windows machines. Also, Chrome OS machines will run on solid state drives, which could drive the price up, but because there’s hardly any local storage involved, the size of these drives–and, therefore, the cost–will be minimal, and will decrease over time with no need to boost capacity.

The Cloud Rules

Eventually, Google will convince people that their data is safe in the cloud, mostly because Google users’ personal information is already up there. Yes, you’re in trouble if there’s some massive server failure, but what are the odds of that compared to your netbook getting stolen or broken? but you can always recover invoices and other vital documents from the cloud.

Market Strategy

Chrome OS will run on a set of reference hardware that will be developed and sold by device OEMs. Google is working directly with manufacturers to specify which hardware components will be supported. Conspicuously, hard drives won’t be on the list. Though the OS is open source, you won’t be able to download it and install it on any device you happen to have. Instead, you’ll have to run it on a Chrome OS-specific device comprised of hardware components that are explicitly supported by the OS.

One expected advantage of Chrome OS will be security. In contrast to the established PC model, in which applications run locally on the drive and user data is generally stored locally as well, Chrome OS will not allow applications to install locally or make changes to the operating system. At the same time, it will automatically sync all user data to the cloud. Meanwhile the operating system will automatically update itself all the time.

User data on every Chrome device will be encrypted, a move that is intended to protect users in the event that their device is lost or stolen. Matt Papakipos, engineering director on the projected, summed up this move by saying, “If I lose my Chrome OS machine, I should be able to go get a new machine, and have everything back up running in seconds” via the automated cloud backups.

Chrome OS “feels much more like a television than a computer.” Turn it, it starts right away, and you’re on the Web by default. In the demo, Chrome did in fact boot almost instantly on the Eee PC netbook. This is in part because the OS is just reading out of RAM rather than a magnetic drive. But there are other reasons that the OS boots and runs more quickly than most other PCs.

Chrome OS consists of custom firmware, a small kernel optimized to run on a short list of reference devices, and the Chrome browser. Because the list of supported hardware is short, the OS is designed without unnecessary background device support. This prevents the operating system from wasting time looking for devices that aren’t there (such as floppy drives), which is a problem with Windows and most other consumer operating systems.

Another aspect of the boot process enhances security. A verified boot process applies cryptographic signature keys to each chunk of code, so the the system can check the validity of module of the operating system before it is allowed to execute. In the event that some element of code doesn’t check out–due to malware or other corruption, the system will run an automated recovery procedure repair itself by redownloading the appropriate version of Chrome and reimaging the OS.

As an addition security measure, the root partition of the device’s drive is read-only, preventing any application from changing the core code.

The software will be initially be available by the holiday season of 2010 on netbooks that meet Google’s hardware specifications, such as using only memory chips to store data instead of slower hard drives.

Sundar Pinchai, vice-president of product management for Google’s Chrome OS, siad computers running Chrome OS will be able to start in less than seven seconds. “From the time you press boot you want it to be like a TV: You turn it on and you should be on the Web using your applications,” he said.

Chrome OS is a “open source, lightweight operating system”. It won’t be available until the second half of 2010, but the source code will be made available later this year.

At the heart of the OS is Google’s Chrome browser. In fact, the operating system appears to be little more than a secure platform for the browser to run upon. Google says the following: “Speed, simplicity and security are the key aspects of Google Chrome OS. We’re designing the OS to be fast and lightweight, to start up and get you onto the web in a few seconds.”

Some reasons Google Chrome OS will do wonders,

- It is OPEN SOURCE

Chrome OS appears to be based on a Linux kernel with a custom windowing system. It’s worth remembering that windowing/desktop interfaces matter less when you consider this is simply a browser-based operating system designed to get you online and push you towards online applications.

- GOOGLE is taking on MICROSOFT

Google is producing a product that directly competes with Windows. To add insult to injury, it’s open source — the one thing that Microsoft really hates.

By using open source, Google is positioning itself diametrically opposite Microsoft. In some ways, Google had no choice but to embrace open source.

- Chrome OS is just another sign that open source is going for an all-out attack on the netbook arena.

With Microsoft allegedly limiting the power and size of discount Windows XP-licensed netbooks, the door is open for Chrome OS to back better machines.

Some challenges for Google Chrome OS,

- Netbooks aren’t the world

Netbooks may be important, but they remain a tiny part of the world’s PC sales. Google’s bet is predicated on strong demand for weak computers. It also takes advantage of a kink in Microsoft’s armor: MS actually needs to sell its operating systems while Google can, for now, afford to just give Chrome away.

Google is counting on users of small computers not being tied to specific applications and being willing to accept low cost and, perhaps, ease of use over a more familiar and more powerful environment.

- Microsoft can shoot to kill

I’m Steve Ballmer and here’s what I say: Windows 7 NB (for netbooks) will be free through all of 2010. Starting right now. Anything Google can do, Microsoft can–at least theoretically–do better. Google wants to give away a netbook operating system? So can Microsoft.

It will be hard for regulators to complain as Microsoft is now reacting to a powerful competitor’s frontal assault on Windows. And placing and end date on the freebie–which can always be extended–allows MS to charge once Chrome is vanquished.

- Google Docs is the best they can do

Google’s cloud computing strategy so far is “applications lite,” which may be fine for occasional use, just like a netbook, but don’t meet enough needs to be a real solution.

- Compatibility

Compatibility, both hardware and software was the major reason why the world anointed Microsoft its King of Computing.

Compatibility really matters and while Chrome’s world may be complete as far as it reaches, there is always more. That’s why Windows, frustrating as it may be, will prevail. The “20″ in the 80/20 Rule matters a lot more than proponents of “80 is good enough” like to think.