Chrome vs. Android

Google makes no bones about its new PC software competing with an earlier operating system: Is Chrome OS the beginning of the end of Android?

By Olga Kharif

Google's plans to release computer software were instantly seen as an attempt to tread on Microsoft's turf. The impact of the new operating system, Chrome OS, probably won't be felt in Redmond any time soon. Where Chrome OS will have a more immediate—and, likely, profound—impact is in Google's own backyard: on a project called Android.

The company's efforts will now be divided between potentially competing operating systems, and some analysts speculate Google will de-emphasize Android for such devices as netbooks. Software developers may also be forced to choose between the two systems, with many favoring Chrome OS. As a result, the quality and versatility of Android may suffer and it may become a less attractive option for makers of computers and other electronics. "Chrome will result in more fragmentation," says Andrew Brown, a director at Strategy Analytics, a consulting firm. "It also suggests Google may scale back [efforts related to] Android for netbooks."

Android, introduced last year by a group of companies led by Google (GOOG), was initially designed to run mobile phones, though developers were increasingly inclined to put it on a wider array of computing devices. It already powers smartphones like the T-Mobile G1. A number of companies have also been looking at using Android in larger Mobile Internet Devices (MIDs), netbooks, set-top boxes, and even televisions, according to Google. "We are being very supportive to the [developer] community targeting these devices," Andy Rubin, senior director of mobile platforms at Google, told BusinessWeek.com earlier this year.

Speculation about a Scaleback

In June, PC maker Acer announced it will release its first Android-based Aspire One netbook; the computer is due to become available in the third quarter. "In addition to Microsoft's operating system, the majority of Acer netbooks will also offer Android in the future," the company said in a statement at the time. A startup called Touch Revolution is developing an Android-based kitchen computer. Even Hewlett-Packard (HPQ), the world's largest PC maker, has been considering using Android.

Now, though, some analysts speculate Google may drastically scale back its Android ambitions, which might put some computer makers' plans in limbo. In announcing Chrome OS, even Google acknowledged the potential for rivalry between the two systems. "While there are areas where Google Chrome OS and Android overlap, we believe choice will drive innovation for the benefit of everyone, including Google," the company said in a blog entry. The first netbooks running Chrome are due to be released in the second half of 2010.

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