Android: One Multitasking Operating System

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Google hasn't announced plans to market Android for use in nonphone gadgets. Still, "we are being very supportive to the [developer] community targeting these devices," says Andy Rubin, senior director of mobile platforms at Google.

While they didn't say much about nonwireless devices when they first started talking about Android, Google and its partners designed Android to run on any device—from a smart phone to a server. "We had the foresight to design it with bigger screens and [chips] in mind," Rubin says. Unlike many cell-phone and PC-based operating systems, Android can run on devices powered by a variety of semiconductors with minimal modifications needed. "There's nothing that I've been able to find out that would limit it," says Bill Hughes, an independent software analyst.

Competition from Linux

With flexibility comes economy. Manufacturers can keep costs low by being able to choose from a wider range of chips, for example. The software is also virtually free to use, while Microsoft charges licensing fees.

And just in case consumers fret that they won't be able to use their favorite Microsoft applications on an Android device, a company called DataViz will soon unveil software that it says will let people open, edit, and send Word, Excel, and Microsoft PowerPoint files. The software will also allow synching between Android and Outlook e-mail. "Android has quite a bit of potential," says Ilya Eliashevsky, product manager at DataViz.

As potent as it may be, Android faces competition not just from Microsoft but also Linux. One of Android's creators, Intel (INTC), recently introduced its own Linux software, Moblin, for use with MIDs and netbooks running its Atom processors.

That said, there's no reason why the two efforts couldn't combine, says David Liu, CEO of Good OS, which plans to use parts of Android and Moblin to speed the boot-up times of its own computer software.

And in places where Microsoft is established, consumers familiar with Windows may also hesitate to adopt a new operating system. "People tend to be pretty sticky with their [operating systems]," Hughes says. "[Android] has to offer something cheaper and dramatically easier to use." Woe to Microsoft if it does.

Kharif is a senior writer for BusinessWeek.com in Portland, Ore.