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Google has decided to launch an operating system for Personal Computers based on its Chrome web browser. Google’s decision will offer direct challenge to its rival Microsoft Corporation. This will increase the competition between the two technology giants as Google aims to attack Microsoft’s most profitable business. Microsoft’s operating system is the foundation of most of the world’s Personal computers accounting for 88% of North Americas market share.

Google aims to attract a large primary audience familiar with its brand and usability when the operating system is launched in the second half of 2010. The operating system is designed to log the user onto the Web in a few seconds and most of the user experience will take place on the web. Google has also decided to open source its code for the new browser and will make it publicly available to outside programmers. Business analysts see this decision as an attempt by Google to lure more customers to use its online tools. Net books used for basic software use are the first target of Google’s Chrome operating software. This will serve as a sweet spot in the market as Microsoft’s operating system does not run on most net books.

The Chrome Operating System aims to build on Google’s vision for a “cloud based architecture” deemphasizing the operating system This fast and efficient operating system will give Google an entry into other software products. In the long run this launch will target the market beyond Microsoft’s Windows target market. However Google will face several challenges before the launch of its Operating system software. For example Intel is also developing an Open source operating system known as Moblin. On the other hand breaking into a market, which accounts for one third of Microsoft’s annual revenue and more than half of its annual profit will also be challenging.