Google's (GOOG) next challenge to Microsoft (MSFT)


Google (NASDAQ: GOOG) may be working on an arrangement to put its Android handset operating system into PCs. The move would not be helpful to Microsoft (NASDAQ: MSFT). According to Bloomberg, "Asustek Computer Inc., which pioneered the market for sub-$500 laptops, may install Google Inc.'s free Android operating system on its low-cost notebooks, challenging the dominance of Microsoft Corp.'s Windows software."

It is hard to see it as a challenge. Netbooks run OSs from other software development sources like Linux. Most buyers of the small machines have to upgrade to the more useful and robust version of Windows if they want its full functions of Word, spreadsheets, PowerPoint, and multimedia capacity.

The problem Android creates for Microsoft is long-term. If engineers can create applications that do mirror what Window does on the PC, Redmond has a problem. But that development process could take years and could run into patent problems because of key IP rights that Microsoft has set up over the last two decades.

A Google-powered PC may cause trouble for Microsoft, but that is years away.

Douglas A. McIntyre is an editor at 24/7 Wall St.

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