• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive

3

Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive

3

Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail
operating systems

What does the future hold for Google Chrome OS?

By
David Nield
David Nield
Down Arrow Button Icon
By
David Nield
David Nield
Down Arrow Button Icon
March 12, 2014, 1:42 PM ET

FORTUNE — You could be forgiven for having forgotten that Google (GOOG) has its own desktop operating system, launched back in 2009. Championing a vision of a future where all data and applications live in the cloud, Chrome OS has struggled to make a dent: It accounts for only 1% of the PC market as of January 2014, according to figures from IDC. Net Applications, another market research firm, pegs global usage of Chrome OS at somewhere south of a single percent.

Yet small signs of growth are appearing. Chromebooks — the stripped-down notebooks that run Chrome OS — are starting to show up regularly in the list of bestselling laptops on Amazon (AMZN). By this summer, all the major laptop manufacturers other than Apple will have Chromebooks on sale, including Dell, Acer, Asus, Sony (SNE), HP (HPQ), Toshiba, and Lenovo. And perhaps most tellingly of all, Microsoft (MSFT) has taken the time to disparage Chrome OS directly. If companies turn to Google’s low-cost, low-maintenance laptops in significant numbers, it will cause some serious headaches in Redmond.

Then there are figures from the NPD Group, which show Chromebooks claiming a 9.6% share of the business sector at the end of 2013. That’s higher than sales of Apple laptops, Windows tablets, and Android tablets in the same space. NPD’s report noted a fourfold increase in the number of Chromebooks pushed through commercial channels in the U.S. during 2013: 1.76 million compared with 400,000 in 2012. In short, Chrome OS remains just a dot on the horizon as far as the bigger picture is concerned, but it’s a dot that’s growing.

MORE: Chart: Acquisitions by Apple, Amazon, Google, Yahoo, Facebook

The Chromebooks and Chromeboxes that run Chrome OS offer little more than a web browser and a sliver of space for local files. While this makes them dependent on Internet access, online apps, and cloud storage, it also means they are inexpensive to deploy and easy to maintain. Security and software updates are effectively handled automatically by the operating system, and backups are handled remotely on the web. Significantly, Google has just announced a partnership with the virtualization vendor VMware (VMW), enabling Chromebook users to access legacy Windows applications through a browser tab.

NPD’s Stephen Baker attributes the rise of Chromebook sales to increased availability, lower prices, improved form factors, and a better use case: “Chromebooks are now marketed as being more strongly equivalent to a traditional notebook PC and offering capabilities that aren’t only tied to the web,” Baker told Fortune. “Consumers have been looking for low-cost web access and computing devices for quite a while, and the Chromebook fits those requirements.”

IHS analyst Craig Stice agreed that a low price was critical to the growth of Google’s lightweight operating system. “The price alone is a big attraction to these systems, which are in the $200-plus range,” he said. “As well, they came at a time when the low-end priced PC and netbook market had disappeared. The notebook-like form factor of a Chromebook with the attached keyboard aids efficiency and offers what a media tablet cannot provide. The cloud-based storage creates a much easier management structure for small IT departments, and the ease of use makes them a blessing for teachers.”

MORE: Why Google should acquire Tesla

For businesses heavily invested in Microsoft Office and proprietary desktop software, Chromebooks are a tough sell. Yet as Forrester analyst JP Gordon noted in a July 2013 blog post, they do have the opportunity to “fill a legitimate computing niche” for companies willing to segment their workforce and switch to Google Apps, at least in part. The benefits of Chrome OS cited by Gordon include high uptime, low service costs, and scalable deployment of new applications and content. The ease of collaboration provided by programs that live online is another important factor.

When Chrome OS first appeared, industry commentators struggled to see the appeal of such a limited, online-dependent platform. With Windows 8/8.1 floundering and Apple (AAPL) laptops remaining at the premium end of the market, the simplicity of Chrome OS has suddenly become a strength: “I am now recommending Chromebooks instead of Windows laptops for civilians,” wrote ZDNet’s David Gewirtz in January.

Overall, analysts remain cautious about Chrome OS’s prospects for gaining further ground in 2014. “For business, we don’t think Chromebooks are quite yet ready to compete fully with the PC in the workplace,” NPD’s Baker said. “Their success to date in B2B sales has been focused on schools and government organizations where some of the specific benefits of Chrome OS — easy to manage, multiple sign-ons, low maintenance and acquisition costs, compatibility with other Google services — are an important driver.”

MORE: Google Capital comes out of stealth with third investment

“The announcement of the partnership with VMware to run legacy Windows will certainly make a Chromebook potentially more attractive to the commercial markets,” Stice added. “They seem to be adequate low-cost devices for scenarios where connections are always available, such as the educational markets or in SMBs that are already heavily cloud-based. Take them out of that environment, and they are challenged by standard full performance PCs that can run Microsoft Office natively and have greater local storage.”

While Chrome OS take-up may remain low for the foreseeable future, Google will be pleased to have finally grabbed the attention of a wider audience, as well as its main rivals. It certainly won’t be giving up on Chrome OS: Its new Chromebox for Meetings product wraps Google+ Hangouts video calling, Google Apps, and high-definition video and audio in a turnkey $999 setup for virtual conferences.

What’s more, the company has a beachhead on millions of competing computers across all sectors of the market. The Chrome browser for Windows, Mac, and Linux is installed on 16.22% of machines globally, while the Start screen version of Chrome is effectively Chrome OS running on Windows. What we can be certain of is that web apps will become more powerful at the same time as high-speed Wi-Fi becomes more ubiquitous — which is all good news for one of Google’s most daring projects to date.

About the Author
By David Nield
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Antonio Gracias, founder, chief executive officer and chief investment officer of Valor Equity Partners
InvestingSpaceX
Elon Musk’s best friend could make more than $100 billion from SpaceX’s IPO. His firm is also owed billions by SpaceX
By Eva RoytburgMay 25, 2026
2 hours ago
Huawei touts chip breakthrough to shorten gap with TSMC
AsiaChina
Huawei touts chip breakthrough to shorten gap with TSMC
By BloombergMay 25, 2026
3 hours ago
Simon Sinek says the most successful people in the world ‘hit zero’ or came close to it: Failure is ‘the gift’
Successmanagement advice
Simon Sinek says the most successful people in the world ‘hit zero’ or came close to it: Failure is ‘the gift’
By Sydney LakeMay 25, 2026
3 hours ago
mollick
Economydisruption
‘Nobody knows anything’ and ‘this time is different’: the phrases that define — and haunt — the AI economy
By Nick LichtenbergMay 25, 2026
3 hours ago
Forget quiet quitting—4 in 10 millennials are taking ‘quiet vacations’ and checking out of work (and the country) on company dime instead
SuccessMillennials
Forget quiet quitting—4 in 10 millennials are taking ‘quiet vacations’ and checking out of work (and the country) on company dime instead
By Orianna Rosa RoyleMay 25, 2026
3 hours ago
Kevin O'Leary gestures while testifying before Congress
Successwork culture
Shark Tank star Kevin O’Leary blasts the 4-day week as the ‘stupidest idea’ because the digital economy means we’re always working
By Preston ForeMay 25, 2026
3 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
4 days ago
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
Lifestyle
Uber CEO says rideshare 'freed up' his son from having to get a driver’s license—and he's one of many Gen Zers who aren’t willing to drive
By Sasha RogelbergMay 24, 2026
1 day ago
Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail
Real Estate
Inside the 'stealth wealth' playbook: How Silicon Valley's elite buy multimillion-dollar mansions without leaving a paper trail
By Sydney LakeMay 24, 2026
1 day ago
The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire
Economy
The pig in the python: Baby Boomers are strangling the economy they built by refusing to move or retire
By Nick LichtenbergMay 25, 2026
7 hours ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
3 days ago
This 39-year-old quit his lineman job during the pandemic and built a $50 million company in his backyard
Success
This 39-year-old quit his lineman job during the pandemic and built a $50 million company in his backyard
By Nick LichtenbergMay 23, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.