Google ChromebookGoogle (GOOG) recently announced the launch of the Chromebook. It's a Samsung (SSNLF) or Acer (ASIYF) notebook loaded with its Chrome Web browser as a bare-bones operating system. Chromebook owners will access email and spreadsheets directly on the Web, rather than via such PC software as Microsoft Outlook or Word.

We believe that the Chromebook launch is directly aimed at Microsoft (MSFT), in the PC operating system and productivity software markets, as well as at Apple (AAPL), which uses its own operating systems for the popular Mac and iPad.

What's at Risk for Microsoft?

According to our estimates, Microsoft derives about 75% of its stock value from its Windows operating system and Office suite of products, which shows how important it is for Microsoft to protect them. Although consumers and businesses have grown accustomed to using Microsoft's products over the years, and more advanced programs need the support of a full operating system, the Chromebook seems like another shot across Microsoft's bow, and a signal of Google's intentions to push for greater adoption of a Web-based environment. In the short term, we expect its impact to be negligible for Microsoft, but Google could threaten its core businesses in the long term.

Google's solution could be cheaper and faster, and enable users to avoid the annoyances of traditional PCs, such as long boot-up times, and the necessity of staying current on updates and new software.

We have a $29.66 price estimate for Microsoft stock, which is about 15% above market price.

See our complete analysis for Microsoft stock here

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If you are considering Chromebooks but don't want to leave your Windows apps behind, you should look at Ericom AccessNow, a pure HTML5 RDP client that enables Chromebook users to connect to any RDP host, including Terminal Server (RDS Session Host), physical desktops or VDI virtual desktops – and run their applications and desktops in a browser.

Ericom‘s AccessNow does not require Java, Flash, Silverlight, ActiveX, or any other underlying technology to be installed on end-user devices – an HTML5 browser is all that is required.

For more info, and to download the beta, visit:

June 23 2011 at 9:22 AM Report abuse rate up rate down Reply

Don't even think about it. I don't want all my things stored in clouds.I wanna control life myself.IE9 is much better now, it also compatible with my favorites avant brower,why should I use chromebook? No way.

May 19 2011 at 3:03 AM Report abuse -1 rate up rate down Reply

Windows stinks. Every damned day they're updating it for something. Do it right the first time, Microsoft, and quit with all the bandaids and patches. I'm weaning off Firefox for Chrome. Great browser!

May 19 2011 at 1:21 AM Report abuse rate up rate down Reply

Microsoft stopped being an 'innovator' years ago. I have an old Windows 98 operating system on one of my computers and Its almost as good as their latest effort. They have so many glitches in all their Windows apps that its obvious they will some day loose to a more advanced system. It appears to me that they have fallen into a rut with their Windows and have no idea how to progress from there. There is a huge opportunity for some company to develop a GREAT operating system because everyone I know HATES Microsoft and their recent garbage programs that they expect the end user to debug for them. I would be glad to see Microsoft programs replaced with a more reliable and better system tomorrow. They are NOT progressing like they used to years ago.

May 18 2011 at 11:09 PM Report abuse +1 rate up rate down Reply

Ask Amazon users what happens when the "Cloud" has a technical problem. Most people don't understand where programs are stored, or how technology works. They just want it to work and don't know what they are giving up by just relying on the "Cloud" and what they think is free. Ever read the fine print of a Google agreement? No one would ever use their mail program or a lot of other products if they did. You get what you pay for and no one stays in business for Free. :)

May 18 2011 at 6:21 PM Report abuse rate up rate down Reply

They might want to save our stuff to a central server over the web, but what if it goes down? They better have a back up in place or their customers will lose confidence in them!

May 18 2011 at 3:12 PM Report abuse rate up rate down Reply

Cool and do enjoy Google business model from the start but please keep your promise and do no evil to your products users. :)

May 18 2011 at 2:55 PM Report abuse +2 rate up rate down Reply

Heyyy, it's wayyy past time that microsoft has some competition!! That lousy damn microsoft wants 10.00 a year just to use their mangy browser, when you can use others for absolutely free!! I was kinda duped when I d/l'd windows live essentials and the crap that goes with i and in that tidy mess was something that offered 'their web browser" for a fee of $10.00 a year and I was like...WHAAAATTT??!! ^&%@@#!*& :( Man alive you people are nuts!! Then you take when you buy a "brand new computer with microsft whatever in it and for whatever reason you are referred to or have to contact microsoft for support mind you again, with a "brand new computer" and guess what?! Ohhh, hello sir/mrs would you like the "per incident charge or just the flat rate of taking 12 inches in the rear!!!" It's absolutely sickening that a company that's already worth literal billions insists upon gouging the poor customer who most often knows nothing about a computer aside from the fact it isn't working and something with "their software, their brand name isn't working properly and now they want to nail you hard just to talk to someone on the phone and try and get the crap operating again!! As well the greedy company sells it's systems and and software for wayyy up there prices when you can buy an AMD system that's more powerful, sophisticated and wayyy cheaper to buy!! I will stick with AMD as long as they are around and remain a good investment and I hope ole billy boy and his lousy droogies go down the tubes!!

May 18 2011 at 2:48 PM Report abuse rate up rate down Reply

Chrome is extremely annoying to use.. Gonna have to get ALOT better...

May 18 2011 at 1:45 PM Report abuse +1 rate up rate down Reply