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Google Chrome: Direct attack on Microsoft

Posted Sep 02 2008, 12:28 AM by Andrew Horowitz
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The browser war just heated up. Actually, it has now gone nuclear. It was one thing when open-source Mozilla had a "cute" idea for an Internet browser and was considered a fringe product, but it's now quite another since they have effectively stolen approximately 20% of the market share over the past five years or so.

Now Google, the market share leader for Internet search, is looking to chip away even more from Microsoft's foothold by introducing a browser of their own. Available in a beta version, Chrome is Google's open-source browser entry and hopes to gain traction with its legion of loyal followers that are devoted Google-ites. That could easily push it into third place, just behind Firefox but ahead of Netscape, Opera and Safari.

This is especially worrisome as Microsoft's Internet Explorer has been consistently losing market share since 2002, when it had a 90% share of the browser market. That has since dropped to 72%.

What is interesting to note though is that Google chose to introduce and announce the new browser through a comic book-styled presentation. Was this designed to specifically taunt Microsoft or does it mean that perhaps Google isn't taking this initiative too seriously? If the comic book entrance is any indication and if that is added to the somewhat sloppy product announcement (admittedly sent out in error and earlier than was planned), it would appear that Google believes that this is nothing special. Maybe Google's management believes it is just another project with no direct target. Yet, Michael Arrington, founder of the popular TechCrunch blog, believes that this is clearly a direct attack on Microsoft and more specifically an assault on Windows:

Make no mistake. The cute comic book and the touchy-feely talk about user experience is little more than a coat of paint on top of a monumental hatred of Microsoft.

Chrome, the Webkit-based Google browser that launches tomorrow at Google.com/chrome, will give them a real foothold on the desktop and way more control over how web applications perform. While it seems that Chrome is aimed at IE and Firefox, the target is really Windows.

The comic book is somewhat simply designed, with a blue monotone coloring and generic enough as it discusses what most would expect: safety, speed, reliability and the benefit that it is built from the ground up. These are clearly the hot buttons for any user, but I can't help to notice the similarities to this and impassioned promises put forth in political speeches. The same speeches with just as many pokes and jabs skillfully directed at their opponent(s). The good news is that many of the answers surrounding Chrome's abilities will soon be known as blogs will surely be quickly filled with the results of stress tests and side-by-side comparisons.

On the investment side of the discussion, Microsoft does not need any more negative PR. Between the relentless attacks by Apple, which has effectively created consumer doubt, to the more recent Yahoo fiasco, the stock has been under significant pressure. Over the next few days, it will be interesting to watch how the introduction of Chrome will play out and affect both Google's and Microsoft's stock price.

In his closing comments in the same article referenced, Arrington also expressed his thoughts on Google's outlook, though I can't help to wonder if Google has finally "jumped-the-shark" with Chrome:

I love Chrome already and I haven’t even tried it yet (nor will I be using it much soon, since it will only work on Windows for now). But Google’s days of unchecked growth may soon come to an end. They are quickly becoming the new Microsoft.

The biggest concern I see is the potential for Google to have a greater ability to access buying and shopping habits. This could be very useful to a company that makes its money through advertising revenue and one that is intimately involved with online shopping. While subliminal advertising is illegal, pattern recognition algorithms are not and are used frequently to help suggest opportunities through advertising supported search engines and retail websites. 

A good example of this is the always "helpful" feature by Amazon that presents you several books that you may also like, "based on your purchase history."  Does this concern you? Are you going to run and download the Chrome browser?

Related Reading:

Yahoo's stock: Back to pre-Yahoo levels

The Disciplined Investor Podcast with MSN Money

Microsoft's new marketing weapon: Seinfeld

Disclosure: Horowitz & Company clients may hold LONG position of securities mentioned as of the publish date.

Andrew Horowitz is a money manager and the founder of Horowitz & Company. He is also the author of the bestselling book, The Disciplined Investor . Check out his latest investment idea or listen in as he hosts, The Disciplined Investor Podcast.

 

Comments

 

The "biggest concern" detailed in the last paragraph(s) is of no concern to me, if this is truly an open-source project. Open source means you can look at the inner-workings of the program and if you don't like what it's doing, you can change it.

My first thought was, "Well, at least it's open source, so we can verify what information Google's trying to syphon from us... These lines get commented. Rebuild. Good as new!"

Oh wait, maybe I'll just keep using firefox.

Yeah, I think I'll just keep using firefox. I might use a little of the "Chrome", but is it really that much better then FF3?

As a past  happy member of the Google Familiy. Beware of google bearing gifts.  Let us remember with google  that nothing is as it seems.   I remember a time when I could google a search term without being force fed adverstiser sites with no meaningful information.  YouTUBE videos are  now the most common search result.  Hmm who owns U tube?   Google is very crafty you get it for free but in the end the results will be manipulated by advertisers.  

I believe Outlook Express is a product of IE Browser.. Will I be able to connect to outllook express with Google Browser?

Have been working with it for the past hour or so! Impressive on all the sites that i have tried from a speed point of view as well as ability to log on secure sites such as banks and brokers

Google is a search engine. They're not an internet provider. Regardless of internet provider, you can access Google. Google would become a real threat to Microsoft if they would to come up with their own operating system free from Microsoft support. Google can not survive on their own. How would millions in this country and abroard access the internet if it wasn't for Windows. Software was written making it easier to access the internet. Google being a search engine, is only a tool used in ones queries. What identity does Google have of it's own, free from the support of other internet providers?

For any internet provider to dominate the advertising market, could it be because of the tracking, the spyware/adware they practice or use?

The more advertising market Google succeeds in obtaining, the more I'll avoid using it for my searches. For some reason I just don'trust using Google, nor do I trust a pacticular internet provider. It's a matter of individual rights.Will Google start violating individual rights to obtain what they want and that's the advertising  market, by using tracking, spyware/adware cookies? Can that be a reason you've started getting pop ups because of such practices?

Edward,

Google can survive on its own because iinternet acc essdoes not depend on Windows -or even microsoft- as you seem to suggest. Millions already access the internet through other operating systems like Leopard or any of the Linux distros. Windows and Vista are actually mediocre products.

It crashed on install. Reinstall did not hlep. Maybe next time.

Please Edward .. wake up... World not built on Windows nor Gate... tune your tv on ... stay on Discovery channell please... you might learn somethings...

It is a mystery to me why everyone is all worried about Chrome trying to attack Windows. Clearly Google has, shall we say, a certain and no doubt seething hatred for Microsoft, reminiscent of the relationship between Apple and Microsoft in the eighties or even Apple and IBM. Still I simply do not understand why people think a web browser can replace or even threaten Windows. I should state here that I’m a firm Linux and Mac user, and as such am not defending Microsoft or Windows so much as trying to correct what I see as a misguided impression of what seems to be going on here.

So what’s going on here? Google has launched Chrome—it’s new, it’s cool, it works nicely. I know, I’ve tried it—kicked the tires and driven it around the block a couple of times. It’s nice. Still it’s a web browser and new and cool and advanced as it is, it’s no operating system. “Analysts” keep trying to compare Chrome to an operating system, and I’m sorry to inform you that it’s not. It’s not even a close comparison really. Here’s my argument: what a web browser is, what it does, is gives you an interpreter to be able to view data on the internet. Anything more than that is just gravy. All those little applications like flash plug-ins and crash control and all those sorts of things are nice but they don’t control your computer. More importantly a web browser needs, much like our presidential contenders, a platform to run on. Enter the operating system. Now what an operating system is, what it does, is provide you, the user and your applications, a way of interfacing a program with the actual hardware—the resisters and transistor and little gadgets and gizmos that make up the circuit boards of your computer. Again, anything more than accomplishing this basic task, such as solitaire or pretty screen savers, is just gravy.

See why I don’t get the comparison? Even if Google wanted to topple Windows, a web browser is not the way to topple anything more than another web browser, because web browsers and operating systems are fundamentally different programs. So until Google comes out with something that can allocate my system memory, manage my hard drive space, or schedule my processing time along with all the many other tasks performed by an operating system I think we need to lay this comparison to rest. Now if you want to talk about Google wanting to oust IE, well that’s another story all together.

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