Google is aiming Chrome OS right at the bottom of the market. That is to say, cheap computers, netbooks. Apple, of course, takes the opposite approach, targeting the high end of the market with their high-quality and high-margin machines. If Google is successful with its Chrome OS netbooks (let’s call them ChromeBooks), what we could see is the squeezing of Microsoft, an idea I first laid out a month ago. With attacks from the top and bottom, Windows will be relegated to the middle. And ultimately, if Google has its way, marginalized.

There are a number of problems with being in the middle. First and foremost, the middle is average, boring, bland, etc. There’s nothing particularly wrong with that, unless you’re a company like Microsoft with an image problem. After years of taking hits, Microsoft is trying to revamp its image with expensive ads, new stores, and a new OS, among other things. But the middle is hard to sell. It’s neither the cheapest nor the best. It’s the thing people have to settle on.

Microsoft, of course, is also in the netbook space with Windows XP and now Windows 7. But after being a sector on fire for much of the year, signs point to a slowdown in sales. While you might think that would be bad news for both Microsoft and Google, Google’s ChromeBooks are really a new category altogether. As Google said during its event, they’re working with specific hardware manufacturers to make machines set to a certain standard. This means that they’ll have larger keyboards and trackpads than most netbooks, among other things. In other words, they’ll be better, from a hardware perspective, than most netbooks.

And they potentially serve a different purpose. A couple days ago, Daring Fireball wondered if the real key for Chrome OS (and netbooks) may be to serve as your secondary computer. But there’s really no need to wonder, Google’s VP of Product Management, Sundar Pichai, said as much during the Q&A session. “This will be a secondary device. It may be a primary device in terms of time spent on it, but we expect people to have other computers too,” he said when asked about more powerful editing software not being able to run on Chrome OS.

People aren’t buying $300 computers with the expectation of running Photoshop (which costs $700) on them. They are buying them mainly to get an extremely portable machine that can surf the web. Google’s promise with Chrome OS is the fastest way to do that.

And that’s what a lot of critics are missing (but we’ve been saying since July). Google isn’t trying to compete with a standard OS, they’re trying to help users realize that for the majority of computing they do, they don’t need one in the first place. Maybe you have a desktop computer at home for those few tasks that need dedicated native applications, and maybe that runs Windows or maybe that runs OS X. But maybe the machine that you use most of the time is your cheap, fast ChromeBook.

Though they get criticized a lot for not making a netbook, Apple also competes in this highly mobile space — their “netbook” is the iPhone. While unlike Chrome OS, the iPhone can run native applications, it speaks to a similar point: Increasingly, for most of your computing, you don’t need Windows.

The point is that consumer computing is shifting to a place where speed and mobility are paramount. The reason people are so excited about products like the CrunchPad and Apple’s tablet isn’t because they can run Photoshop — they can’t — it’s because they offer an easy way to use the Internet. Same thing with the iPhone. Same thing with Android phones. And it will be the same thing with Chrome OS and the ChromeBooks.

The difference is that these ChromeBooks will be the first devices that actually look like the traditional computers we’re used to. They will look like they could be Windows machines, but they won’t be. That’s a powerful stereotype to break. And if Google breaks that at the bottom of the market, with Apple continuing to break it at the top of the market, Microsoft will begin to feel squeezed.

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Rupert Murdoch is pointing a gun to Google’s head, and Microsoft is helping him pull back the trigger. For the past few weeks, Murdoch and his officers at News Corp. have been very vocal about their distaste for Google and their desire to lead other media companies in a boycott of sorts.

Murdoch keeps threatening to stop letting Google index the WSJ.com and his other media sites, and wants other news sites to join him in this self-imposed silence. The folks at Microsoft’s Bing think this is a great idea. Not only that, but the FT reports that Microsoft is in fact in discussions with News Corp. and other publishers about the possibility of paying them to remove their sites from Google’s search index. This report comes on the heels of a meeting in Europe where Bing dangled the prospect of premium spots in search results to publishers and outright money for search R&D.

Microsoft is not afraid to buy search market share, which is what it’s doing with the Yahoo search deal and even its Cashback program. But with these latest talks, it is literally trying to buy the news, or at least exclusive access to the news.

Bing can’t buy all the news, it can only buy certain brands. If Bing can somehow become the only place you can find news results and working links to the Wall Street Journal and other top papers such as the New York Times, the Washington Post, and the LA Times, for instance, that would be a big reason to switch for a lot of folks. But it’s not clear how much Bing would have to pay the news companies of the world for them to give up all the traffic Google sends them in return for a fraction of that traffic and some cash.

Even Google couldn’t afford to strike such deals. Says Murdoch, of Google, “If they were to pay everybody for everything they took from every newspaper in the world, and every magazine, they wouldn’t have any profits left.”

In order to actually make a dent in Google’s market share, Bing would have to pay such exorbitant sums to so many different news companies that it would be difficult to recoup its investment. Bing certainly get some marketing buzz out of any such move, but that’s about it.

The big problem with a search engine trying to buy market share by buying parts of the news is that information spreads so quickly these days, exclusives last about 30 seconds. That information will end up on a site that is indexed by Google. Or the same news will be broken by someone else on the Web before the WSJ.com even gets to it.

Exclusive indexing goes against the Web’s inherent openness. Companies that try to curtail that openness don’t last long on the Web.

Image via PhotoXpress.

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Editor’s note: More and more mobile app developers are deciding to make apps for Android, even though it still doesn’t have the same reach as the iPhone. In this guest post Kevin Nakao, the VP of Mobile for Whitepages, makes the argument for taking the Android plunge now (as he is preparing to with a new Whitepages Android app launching next week). Follow him on Twitter @knakao

Mobile games publisher Gameloft might have thrown in the towel on Android, but that is a mistake. I certainly understand why they gave up on Android. Since launching in February of this year, our own Whitepages Caller ID app has become a top ten grossing Android application, and yet we’ve seen less than $54,000 in revenue. While our iPhone app download counts are in the millions, our Android app downloads are a mere 17 percent of this volume.

Despite our meager return on investment this year, I believe that the real potential for Android app developers lies in the New Year. Here’s why:

End-To-End Goodness

In addition to being an open platform that facilitates device innovation, Android offers choice and progress when it comes to the marketplace where consumers discover and download applications. While iTunes and The Official App Store are the only places consumers can download apps for their iPhone, Android’s open platform allows merchants like MobiHand and HanDango to set up storefronts, ultimately providing more purchasing options for consumers. Google’s focus on improving its the user experience in its own Android market will also continue to boost revenues for app developers. For example, when the recent 1.6 OS (Cupcake) upgrade provided a much needed facelift for the market, we saw an immediate 18 percent lift in sales for our paid Caller ID application.

Billing Options Get Greener

While Google still has a long way to go in terms of reaching as many consumers as iTunes does, with the power of “what’s hot” and capabilities like in-app purchases, they have begun to enlist an armada of players—including carriers with deep experience in integrated billing—to create better markets for the merchandising and sale of applications. In early November, T-Mobile announced that they will launch their own Android market with integrated carrier billing, giving consumers the ability to charge applications to their phone bill. Also on the Google market roadmap is the ability for publishers to offer subscription purchases.

The low friction of bill-to-phone capabilities for consumers and the recurring revenue benefits of subscription services have the potential to drive significant revenue into the hands of developers. For example, we recently launched a service that allows consumers to text any number to 566587 (LOOKUP) to identify unknown callers and the bill-to-phone conversion rates have been two times what we have seen with the application market conversion rates. Thirty-four percent of our customers selected the unlimited subscription option over a single-use fee.

“Always With Me” Needs to be “Always On”

With the influx of more applications that require persistence—streaming music, Facebook, Skype, IM, & Caller ID—Android’s ability to run more than one application at a time is becoming more important. The “always with you, always on” benefits of mobile will be a key advertising opportunity especially for location-based offerings. Publishers will be able to use Android to generate more revenue by staying in front of users to produce more ad impressions. Advertisers also will be able to reach consumers closer to the point of sale, and take advantage of geo-triggered offers. Higher frequency of usage should also reduce churn for subscription-based services.

T-Mobile Got It Started Right, Verizon Will Unleash the Beast

T-Mobile launched the first Android phone in the U.S., and embraced the open platform. Any other U.S. carrier might have been tempted to meddle, but T-Mobile proved that an open platform would not be riddled with malware and abuse. With Verizon now going big on Android, we will start to see significant uptake. Verizon has 89 million customers with an average Data Revenue Per User of $15.69 to T-Mobile’s 33.5 million customers and $10 in Data Revenue Per User. Sprint has the highest data revenue per user of $19 and 48.3 million customers. In short, Verizon and Sprint will attract many more customers willing to spend more money on Android applications.

Android Needs To Be A Player, Not An iPhone Killer

For the same reason developers support multiple game platforms, browsers, and operating systems, Android just needs to achieve enough consumer scale to justify the investment. As long as Google stays focused on providing freedom in an open and competitive ecosystem, app developers will be rewarded. In just six months, we handily recouped our investment from launching an Android application and expect a significant return next year as Google leverages the reach and power of players like Verizon, T-Mobile, Sprint, Motorola, HTC, Dell, and Samsung to grow its platform.

Think Different

Future app developers should approach Android with more than a simple port of an existing iPhone application. Our initial interest in Android was motivated by innovation and new product features that required integration with core device functionality offered by Android but firewalled on the iPhone. Android’s absence of an approval process facilitates rapid product development and the open platform provides the opportunity to innovate, giving every developer the freedom to compete and earn a place in the consumer’s pocket.

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But lots of changes are coming. Google Voice should roll out publicly shortly. Users may be able to port their existing phone numbers to Google if they choose. Google’s acquisition of Gizmo5 will give the service a client soft phone plus enhanced VoIP capabilities. And who knows what part Google Voice will play in in the upcoming Google Phone.

So a little housekeeping is in order. And the first item on the checklist is to shut down the GrandCentral website on December 31, 2009. Users were upgraded to Google Voice earlier this year, but old GrandCentral messages are still on the old site. So if you want to keep them, Google suggests you download them soon.

The email:

From: voice-noreply@grandcentral.com
Date: November 20, 2009 11:55:25 PM PST
To:
Subject: The GrandCentral website is shutting down – GrandCentral is now Google Voice.

Dear GrandCentral User:

We’re writing to let you know that we will be closing down the GrandCentral website as of December 31, 2009.

All GrandCentral accounts were upgraded to Google Voice earlier this year, but since that time, you’ve still been able to log-in to your GrandCentral account and listen to old messages there. You will no longer be able to log-in to your GrandCentral account after December 31. Because of this, we strongly suggest downloading any messages or contacts that you want to keep in the next 43 days.

We will send you another reminder before closing down the site, but we suggest you take action now to download any information you want to keep.

- The Google Voice Team

And since we love Google Voice so much, I think it’s ok if we say goodbye to GrandCentral by looking back at the many times over the years that we’ve poked fun at the service. A few of my favorite missteps made by the awesome service from the GrandCentral archives:

GrandCentral A Little Too “Beta” For Some

GrandCentral’s “One Number For Life” Not Really

GrandCentral Homeless Stunt Worked So Well It’s Time For An Encore

GrandCentral Offline: If You Wanna Be A Phone Company, You Can’t Go Dead

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One caveat: it’s not built, authorized or in any way endorsed by Google.

Spotted by Stuart Dredge over at Mobile Entertainment, the unofficial Google Wave iPhone app seemingly slipped past Apple’s usually and notoriously rigorous quality assurance and trademark compliance team and made its way to the App Store (iTunes link – up to you to decide if this is something you want to pay for).

There, it is the top result for a search on ‘google wave’ right before Waveboard, another iPhone app for the company’s experimental collaboration and communication tool that wasn’t built by Google.

But at least the latter developer didn’t blatantly use its trademarked logo, company and product name.

The Google Wave iPhone app was in fact made by CLapps, a small developer of games for the iPhone and iPod Touch platform.

CLapps – or rather, its sole employee David Crampton – notes in the app’s description: “I have no connection with Google or Google Wave but just supply a means by which to use it on your iPhone”. Somehow, I think the search giant’s lawyers are still going to have some objections to the naming part.

Expect it to disappear from the Store and (maybe) come back under another name in 3, 2, …

PS: while Google hasn’t yet published an official Google Wave iPhone app, simply pointing your browser to wave.google.com works mighty fine.

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Participating in the panel were:
Matt Galligan, co-Founder of SimpleGeo
Ryan Sarver, Director of Platform at Twitter
Tristan Walker, VP of Business Development at Foursquare
Steve Lee, Group Product Manager Google Maps for Mobile and Google Latitude
Justin Shaffer, Founder of Hot Potato
Elad Gil, CEO of Mixer Labs
Moderators were our own Erick Schonfeld and MG Siegler.

Video by Ustream

Early in the panel, the conversation turned to SimpleGeo, the new infrastructure for location that was revealed earlier this week. Shaffer spoke about how excited he was about the new service. When asked if anyone could copy what Foursquare was doing, Walker talked about Foursquare’s efforts to filter content (which is harder to reproduce).

MG then steered the conversation toward bridging the gap between social networks and the real world, noting that mobile devices are paving the way for this change. But he wondered how services other than Foursquare (which has a game mechanic) would entice users to share their location on a regular basis.

Lee addressed concerns over Latitude’s continuous location sharing, explaining that you can share your location with certain people who you specify, but that Latitude’s approach to constant tracking leads to the ability to offer interesting services. He says that without continuous sharing nearby alerts wouldn’t be possible (or at least as effective). He says that the check-in model and the continuous model will likely coexist (and that check-in can even help give more context about where you are) but that there’s things you can’t do without continuous tracking. Regarding Checking in verus continuous mapping, Elad Gil says he’s seeing about a “nine to ten” relationship between them.

Galligan chimed in by saying that there will be a point when we know where everyone is, but that the context won’t necessarily be known. Galligan then revealed a new technology they are working on involving four dimensions of geolocation that SimpleGeo has created, which allows them to compress location and time stamps into a datapoint, allowing apps to look into the past for the same location.

Sarver talked about why Twitter was interested in location, describing how it would help filter through the noise. He mentioned TrendsMap.com as a great way to visualize geotagged tweets.

Shaffer said that HotPotato is looking to integrate location into their service, but that another key element is what brings conversation together. He says that just location data isn’t necessarily enough (he points out that people watching a baseball game may actually be at the game, or watching on TV.)

In terms of advertising, there seemed to be a broad consensus that geo-based advertising had the potential to be extremley successful. Galligan brought up the potential of special ads and deals, pointing to Yowza as a great example. Saffer later commented that there’s a fine line that these services have to work with — it would be a negative for ads to actually feel like ads (instead it would be better for them to feel like deals).

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Today, Google has begun testing a new look for Search Options. This offers more visual approach to this sidebar, including colors and graphics (oh my). As you can see in the screenshot, “Everything” (regular Google results), “News,” and “Blogs” are a few of the newly visual tabs. There is also a “More” area that shows other things like “Maps.”

Yes, these look quite a bit more like Yahoo search results.

But the most significant thing about this new look may be that it’s showing up as the default view for those seeing this test. Yes, it’s no longer as just an expandable option. Could this be the future of Google Search?

[thanks Kevin]

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First, a few caveats: we didn’t create the Chrome OS build ourselves — it was downloaded from BitTorrent. In theory it could possibly have been tweaked by some malicious hacker to steal your Google account information (this is unlikely, but who knows). There’s an easy fix if you’re worried though: just go make a throwaway Gmail account, and use that to play around with the OS. Also note that because this is running in a virtual machine, you’re probably not going to be seeing great performance (like that 7 second boot time). But it’s more than good enough to get a feel for the OS for yourself.

First, you need to get an image of Chrome OS. You can do that using this torrent. You can also try out the build that GDGT has uploaded, which worked fine in our test as well. If you get the torrent version, you’ll see it’s in a .BZ2 format. You’ll need to extract it. Macs should be able to do this automatically, but for Windows you may need a tool like Win Rar.

Once that’s done, download a version of VirtualBox for whatever OS you’re running on here and install it. After registering (or declining to) you’ll be met with a screen like this. Click the button that says “New” in the upper left hand corner. We’re going to be making a new virtual machine.:

You’ll enter a wizard like this. Hit next.

Go ahead and title the OS whatever you’d like. For the operating system, choose Linux, with Ubuntu as the version (other setups could potentially work, but this is the only one we’ve gotten working).

Choose how much memory to allocate to this virtual machine. This will be dependent on how much memory you have in your computer. The more, the better, but if you choose too much your real computer will become unstable/very slow.

Here’s the tricky part (fortunately it isn’t very tricky). You don’t want to create a new hard disk, instead, you want to use an existing hard disk. Don’t choose one from the drop down menu either — you’re going to want to hit the folder icon just to the right of that to enter the ‘virtual media manager’.

Hit the ‘Add’ button.

Now you have to find the Chrome OS image you downloaded earlier. This is probably on your desktop or in your downloads folder. Once you’ve found it, hit ‘Open’.

Hit ‘Select’ once you reach this window.

Almost there. Make sure ‘use existing hard disk’ is checked. Hit next.

Hit ‘Finish’

You’re done! Hit Start. Hopefully the screen will go black, but only for a little while (this could be anywhere from 10 seconds to a minute or so, depending on how fast your computer is).

Once you’re in, you’ll see a splash screen for ‘Chromium’ (which is what Google calls dev builds of Chrome). To login, you’ll need to enter a valid Google Account ID. Your standard Gmail account should work, but as we said before, this build of ChromeOS came from bittorrent, so you may want to use a throw away account like we did in the screenshots below (you can make one here).

You’re in. Now time to explore. To be honest, everything looks quite similar to Google’s Chrome browser, but there are a few key differences. Note the battery life indicator and options menu in the far upper right. Also try playing around with the ‘New Window’ functions — you’ll find that it’s difficult (if not impossible) to navigate between multiple windows. And be wary of the Bookmarks manager. As far as I can tell, there’s no easy way to get out of it — you’ll have to manually create a new bookmark, which will kick you back into the browser mode once you click it. Oh, and good luck finding the ’shut down’ button, because we sure can’t.

You probably won’t need it, but the shared user password for this install (which you’d need for functions like sudo) is ‘chromeos’ according to the torrent’s listing on ThePirateBay.

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Ever since Google started talking about its Google Chrome OS, developers, competitors, and observers have been wondering why Google needs two operating systems: Android and Chrome OS. At today’s chrome OS briefing, Google was asked whether Chrome OS would support Android apps. The answer is no.

Of course, as Michael pointed out during the Q&A, Steve Jobs said the same thing when he launched the iPhone without apps, and then when he was ready, it was all about the apps. But Google had a good response: they want to make web apps work well on Chrome OS and therefore will only be focusing on those. Later on Sergey Brin touched on the same theme when he said, “Call us dumb businessmen, but . . . we believe the Web platform is a much simpler way.”

Here’s the initial exchange from MG’s live notes:

Q: So Android’s marketplace is key – what about Android apps on Chrome?

SP: Currently we’re only working with web apps. The iPhone was a bit different because THEY made their own native apps. We’re not doing that, we’re doing all web apps for Chrome OS. Netbooks are a better size for web apps.

And here is what Sergey said to a different question at the end of the session:

Call us dumb businessmen, but we really focus on user needs rather than think about strategies relative to other companies and whatnot

We believe the web platform is a much simpler way, where the machines are essentially stateless, more cache-like, but can still be performant. And yet much easier and simpler for individuals to use. Since that is a very important need in the market right now, that is what we are trying to fill.

Rather than support Android apps and other sorts of apps, there is only one kind of app Google is interested in: the Web app. Chrome OS is all about making Web apps the only apps you will ever need. Which kind of makes you wonder how long we’ll need Android apps, or iPhone apps for that matter, because you know it is only a matter of time before a phone comes out running on Chrome OS.

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Still not sure why Google is building its own operating system? It created this animated video to try to explain why the Web needs a new OS, and why that OS should be Chrome. Google just showed the video at its Chrome OS press event which MG is liveblogging.

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Sundar Pichai, Google’s VP of Product Management and Matthew Papakipos, Google’s Engineering Director for Google Chrome OS are speaking at the event. And there will be a Q&A session afterwards.

Below find our live notes (paraphrased):

SP: Welcome everyone. We’re here today to talk about Google Chrome OS. We aren’t launching it today and not beta today. But we’ve made progress. As of today the code will be completely open. We’re excited to announce this.

Google Chrome is foundation of everything we’re doing here. Why do Chrome. It’s been a year. We just announced we’re over 30 million users – and now we’re already over 40 million users. We focused on speed, simplicity, and security. It’s 40% faster in JS than IE8. “One is fast and one is slow.” The most common feed back we get is “Chrome is fast.”

In the last year we’ve updated Chrome about 40 times, but most users don’t even notice. And we’re really focused on HTML5. We really want to push the web forward.

Just this year there is tons of new stuff coming:

1) Chrome for Mac will be ready before the end of the year. Very close now.

2) Chrome for Linux is coming along very well. That’s the foundation of Chrome OS.

3) Extensions are coming. We’ve taken our time to do this right. We have more details coming about extensions with certain partners. These update automatically.

HTML5, we want the web to apps as well as they do natively. We’ve been working hard on this. We want web apps to be able to use system resources the same way. Graphics is one example, we need a way to access to the GPU. Audio/video playback is key. And we need apps to work offline. We’re working with the other major browser vendors to make sure HTML5 comes along.

The growth in netbooks is amazing. Growth is exploding despite the recession. Ultra thin, ultra light computers. The trend is clear that we’re moving to web applications – not desktop applications. It’s the most successful platform out there right now. We’re moving from laptops down to netbooks on the regular computer end. On the other side we’re going from phones to tablets – these are all computers. Laptops are becoming more like phones too – always on connectivity.

Is there a better model of personal computing? We believe so. That’s Chrome OS.

We focus on three things. Speed. Simplicity. Security.

We want Chrome OS to be blazingly fast, basically instant-on. Chrome (the browser) on Chrome OS is going to be much faster.

In Chrome OS every application is a web application. There are no native applications. That gives us simplicity. It’s just a browser with a few modifications. And all data is Chrome OS is in the cloud. This is key, we want all of personal computing to work this way. If you lose your machine, you just get a new one, and it works. With security, because everything is a web app, we can do different things. No system is ever fully secure. With Chrome OS no user install binaries, so we can see bad things easier. We run completely inside the browser security model.

——–DEMO———

It takes about 7 seconds to to go the log-in screen. And another 3 seconds to log in to your application. And we’re working to make that faster.

Should be no surprise that it looks like Chrome the browser. We are opening up the project a year ahead of release right now. A lot of the UI will change in that time. But many of the core concepts here will carry over into the final product.

It looks like Chrome but it has application tabs. (Just like the pictures we posted.) And there is an App Menu. The UI will change a bit, but we want to give you a way to find your favorite applications. Panels are pesistent lightweight windows that never move. Buddy lists and chat are great for this. Or a notepad. And media pops up in little windows.

Demo of a chess game being played within the browser. And you can allow it to take over the full screen so you don’t realize you’re in the browser.

And we want you to be able to read books in Chrome OS. And YouTube videos look great. And there is an all view mode (and the YouTube video is still playing. You can drag and drop tabs. “It just works.”

What happens if you plug in a camera? It simply opens a window with the camera’s files. I can pull any picture and open it in a new browser window.

Microsoft Office launched a killer-app for Chrome OS (laughs). So if you get an Excel doc, it will open in Office online.

People have many types of files with computers right? They need to get in them. Like PDFs, but these work instantly in the browser too.

———–Time for Matthew Papakipos to go under the hood of Chrome OS—————–

MP: Excited about the tech under the hood. All the code is out in the open now, you can go check it out.

We want this to feel much more like a television than a computer. All Chrome OS devices will be based on solid-state storage.

One of the reasons computers boot so slowly today is that they’re still looking for things like floppy drives. Does anyone use those anymore? No. We cut out a lot of the startup processes. And we open the browser immediately. And we have something called Verified Boot – Chrome OS auto-updates itself with all the security patches. Everytime you boot we double check that you’re running what you should be running. If something fails the cryptographic system check, we reboot to get a clean image. Basically this is system recovery.

Current OSes allow apps to have the same power as you. They can modify files, etc. This means a rogue app can do bad things. In Chrome OS all the apps are web apps, with a different security model. All apps are treated as if they are hostile at a system level. A web app can change files on your hard disk, etc.

And we have security sandboxing – same thing we do in Chrome. Every tab run in Chrome OS is locked down and different from other tabs.

The File System: It’s always auto-updated. There are a few areas of the hard disk. The root partition is read-only. This is locked down, which is unusual in OSes today. User data is always encrypted. This is key for safety of your data. So important if you lose your machine.

All user data is synced with the cloud at all times. If you lose your machine, it’s not really gone.

———Back to Sundar Pichai——-

This is all about offering a choice for users.

We’re not going to go into too much detail about going to market today. We’re working on the software right now, but we are also working with manufacturers on the hardware level. For example, we only support solid-state drives and certain types of WiFi cards.

You cannot download and install Chrome on any machine. You will have to buy a new one.

End of next year. Before the holiday season.

While netbooks are popular, but some have usability issues. We want to make slightly larger netbooks with full sized keyboards and big trackpads.

Again, the code is all open source now. The Linux kernal, Unbuntu, Moblin have all been important to what we’re doing now. We can’t wait to see what people do with our code now.

If you are a developer and have the right type of netbook (and a screwdriver) you can get Chrome OS running today.

————Video Demo Time———–

———-Q&A Time———

Q: So many questions. One is what is the focus group for this type of device? I have an Android device now – can you run Android apps on Chrome OS? And Android devices are becoming so powerful, so why not just use this – is there a Chrome server solution?

SP: There are many possibilities. What we are doing across Android is great because it’s all open-source too. I think we’re going through a shift in computing, it’s exciting. Time will tell.

Q: Do you know what this Chrome OS netbooks will cost?

SP: You will hear that from our partners. They will be in the price range that people are used to for netbooks today. But it’s hard to predict a year from now. Also remember, they will be bigger.

Q: Price target you want to hit?

SP: No we don’t have one.

Q: What netbook are you running this on right now (for the demo)?

SP: That’s an Eee PC.

Q: With the APIs support W3C working group standards? What about docs for partners?

SP: There’s a lot of documentation on our website. And we’ve been reaching out to partners for a while.

MP: For standards, yes we’re working closely with all the standards group like W3C to standardize as much as we can. But web standards take a while to be finalized. But it’d be nice to see all this on different OSes.

Q: Will there be an app store? What about driver certification? What about editing apps – like editing photos?

SP: We will have more details about the idea of an app store down the line. We care about web apps – on the web there are hundreds of millons of applications.

MP: We’re working closely with hardware makers for the drivers.

SP: Back to apps that you can’t use on the web, like powerful editing. This will be a secondary device, it may be a primary device in terms of time spent on it, but we expect people to have other computers too.

Q: Codec support and native client support?

MP: Yes, everything that works in Chrome will work in Chrome OS.

SP: And we’re investing in new tech to make web apps run just like desktop apps. Chrome OS will also influence Chrome (the browser).

Q: Will you support Silverlight?

SP: Certain select plug-ins we’re trying to work on. But I don’t have a comment on working with Microsoft (laughs).

Q: Other browsers?

SP: Chrome OS is all about Chrome, so another browser can’t really work here. That said, it’s open source, so other browser makers can make their own OSes if they want.

Q: Will the system be exclusive to netbooks or other devices too? Any hardware partners you can make?

SP: Hardware details will come in the middle of next year. We are intially fully focused on netbook-like computers (clam shell). In the future it will be able to work on anything though.

Q: How big is the whole OS?

SP: Since it’s open source, there’s a lot in there right now. But we’re working hard to make it simple.

Q: Offline access with Gears? What about being on a plane?

SP: WiFi is the use case we have in mind. But having said that, there will be ways to plug in and play media (listen to music and read books, etc) And with HTML5 there is offline support.

Q: What WiFi will you use?

MP: We’re focused on 802.11n.

Q: Virtualization, can you run it now?

MP: Sure, you could build it and run it in a virtual machine. That’s a great way to compile and debug.

Q: What about partners like Adobe? So Android’s marketplace is key – what about Android apps on Chrome?

SP: Independent of Chrome OS we’re all about moving web apps forward – including things like Photoshop on the web. Android apps currently will not run on Chrome OS.

Q (from Mike): Steve Jobs said the same thing when he launched the iPhone (about web apps). There will be pressure to get Android like apps right?

SP: Currently we’re only working with web apps. The iPhone was a bit different because THEY made their own native apps. We’re not doing that, we’re doing all web apps for Chrome OS. Netbooks are a better size for web apps.

Q: What processors will this run on?

SP: x86 and ARM eventually.

Q: So different code?

MP: Not ready to answer that, but basically yes.

Q: What about other machine timeline? What about business model?

SP: We’re just focused on netbooks in 2010. For business model, Chrome OS is free, using the web more benefits us for a company.

Q: Any new ads in Chome OS?

SP: No plans for that. These are all just web apps.

Q: What does Chrome OS do that other browsers on other OSes can’t do?

SP: Most of what we show here you can do in other browser. But there are new user concepts we’re exposing, app tabs, panels, and there will be more.

MP: We can do more stuff with the file system and faster boot times.

Q: How do you get people past the cloud reliability? And what about storing this on Google’s servers.

SP: If your cloud is down, it affects every computer now, so this isn’t really much different. Compare the cloud reliability with what you have to do – the cloud compares favorably. In terms of trust, it’s important that users have choice. And things are open so developers can tell users what is going on.

Q: Is the Signature process – is Google in charge of that?

MP: Yes, we’ll open source that as well.

———Google co-founder Sergey Brin Enters———

Q: Chrome runs JavaScript really well – what about supporting Java?

SP: Technically there is nothing limiting what you’re talking about. But we’re focused on web apps.

Q: Dell has a full laptop but also a small netbook that runs ARM and is instant-on. Any plans to be a second OS on a laptop?

MP: No we’re focused on being the core OS on a machine.

Q: What about running printers or flip cams?

SP: We plan for all standard keyboards, mice, and storage devices. For printing – we’ll have more to share next year. Yes Chrome OS will print. We’re working on it.

Q: Is this about moving the community/ecosystem forward again?

MP: Yes definitely, that’s why we’re open sourcing it. Hopefully this will help other products out there. This makes it easier to work with hardware vendors too.

Q (from Steve): Realtime notifications on every page?

SB: I think we definitely need support for that in the browser. And especially in Chrome OS. Hopefully we can solve the problem of chatting when you’re not signed in to Google.

MP: There is a new notification API standard that is being worked on now.

Q: What about Wave.

SB: Wave will work with that.

Q: What is Chrome’s strategic position for Google?

SB: We really focus on user needs rather than strategies based on other companies. Netbooks are now $300 or $400 you can buy a bunch, but there’s no good way to manage a bunch of them — that’s where the web comes in, and Chrome OS comes in.

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In a couple of hours, Google is going to share more details about its upcoming operating system Chrome OS at an event in Mountain View that will most likely be covered from start to finish by TechCrunch writers (and then some) as well as a slew of other media outlets. Jolicloud, that other OS for netbooks that is completely built for people who live and work on the Web from the ground up, has in the meantime been running fine on my own netbook for the past couple of months.

So in light of the upcoming GOOG buzz, Jolicloud founder Tariq Krim got in touch with me to share some of the things he and his team have been working on. Since the subject lies rather close to the premise of John Gruber’s great The OS Opportunity blog post, it’s worth reading that before continuation.

Done? ok.

Krim realizes full well that he’s going to have to tell a pretty compelling story to get people to pay attention to what Jolicloud is building, considering the appeal Google has in terms of branding and its history of putting stuff out there that are impressive on a technological level. Even if Google’s OS proves to be ‘good enough’, it’ll be tough for Jolicloud to compete with. But it certainly helps a lot to have a great product that’s unique in its own regards, and the Jolicloud OS is definitely worth a look if you agree that the Web is “the most important software platform in the world today”, as Gruber puts it.

Jolicloud is currently a bit of a drag to install because it involves putting the installer on a USB stick and try to get it up and running that way for every type of netbook out there. The release of Jolicloud Express, however, is going to change all that: you’ll be able to simply download the system from the startup’s website, install and run it alongside whatever else you have as OS on your netbook (usually Windows XP or 7). It will keep the Windows partition and data safe, so you can always switch back to Windows, but if you’re anything like me chances are you won’t. Jolicloud Express will be introduced at the Le Web conference in December.

Jolicloud’s Pre-Beta release, which is currently going out to testers and will be the new upgrade for all users next week, will support native resolution for Intel Atom z500-series netbooks (including the Dell Mini 10, Mini 12, the Acer Aspire One 751, Asus EeePC 1101 and many more) with the GMA500 chipset. I’d explain why that’s a rather big deal, but Jolicloud’s Adam McDaniel blogged about the how and why much more eloquently and in much more detail than I ever could. (McDaniel, by the way, is the guy who cooked up EeePC support for Ubuntu and built the Array Linux kernel.)

Biggest plus of Poulsbo (GMA 500 codename) support: compatibility with 720p HD video.

Jolicloud will be debuting something else at Le Web next month: their new HTML5 launcher that was built in collaboration with several key Mozilla developers. The main goal is to give people a way to synchronize as many netbooks as they want with their Jolicloud account, including preferences, installed apps, and so on.

The team is also constantly finetuning the user interface to give users the best possible user experience on a relatively small screen, something as a user I can only acknowledge and applaud. Among other things, Jolicloud is working on implementation of the Activity Streams standard, which essentially means social networking activity will become an integral part of the operating system rather than something bolted on top.

Also in the labs: the idea of providing a Jolicloud-powered netbook with a custom Twitter account, enabling users to converse and interact with their streams even if they’re not actually in front of their computers.

Evidently, Google Chrome OS is going to get all the buzz today, and however well-deserved it’s worth noting that there are startups already working on the next generation of operating systems that can already be installed and tested on netbooks today. Even if Jolicloud never achieves the success the Paris-based team – which is now 12 people strong – and its high-profile investors are hoping for, I think that’s admirable and worth highlighting.

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As the TechCrunch Network’s resident mobile guy, I was given the task of writing up a list of apps for each smartphone platform that you ought to buy as little e-stocking stuffers for your loved ones. It was to be my primary contribution to CrunchGear’s ultra-amazing Holiday Gift Guide; my festively themed magnum opus.

But there’s a problem with this idea: it can’t be done. It’s not because I’m lazy (which may be true), nor because I don’t have any apps to recommend (which most certainly is not). I can’t recommend apps for you to buy for others, because you can’t buy apps for others.

Read the rest of this post at Mobile Crunch >>

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A new feature in Gmail Labs allows you to change your contacts’ circular chat status icons in Android logo status icons. But the key is that these icons only change for users who are currently online on their Android phones.

Google’s official stance on this is as follows:

These icons can help you decide whether to tailor your conversation to the type of device that your chat buddy is using. For example, when you know the guy on the other end is using his Android phone, you may decide to send shorter, more concise chat messages.

Of course, they don’t tailor these icons for any other type of phone, just Android. It seems if Google really wants to help with mobile chat experiences, they could also have BlackBerry icons, Pre icons, etc. I would bring up iPhone icons, but Apple would probably sue Google if they tried to use that — I wish I were kidding.

This is a fun little feature for Android users, and as I said, totally innocuous. But I do wonder what else Google has up its sleeve for cross promotion as they continue to move into new businesses. Remember, the Droid was already advertised on Google’s homepage, something they rarely do. And remember too what got Microsoft in trouble in the 90s: Bundling products with its dominant operating system.

Again, before everyone gets their panties in a bunch, this example clearly isn’t a big deal. But think forward a bit as the web becomes more and more of the dominant platform rather than the operating system. And Google controls that domain. And product creep is happening.

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Lots of people are saying there’s no way Google will enter the phone market directly and compete with all these handset manufacturers who have bet on Android. Daring Fireball, PC World and IntoMobile are among the doubters. And a lot of people are pointing to a Tom Krazit/CNET article last month that quoted Google’s Andy Rubin: “We’re not making hardware…We’re enabling other people to build hardware,” and “Rubin, vice president of engineering for Android at Google, scoffed at the notion that the company would “compete with its customers” by releasing its own phone.”

Normally I’d just point to the fact that many companies deny the existence of products until the day they announce them. Apple scoffed at the notion that they’d ever build a phone until they announced the iPhone, for example. The last thing Google wants is a lot of confusion among handset manufacturers just when those manufacturers are putting the finishing touches on their own Android phones.

But there may be another way Google will argue that they aren’t “competing with customers” by launching their own device – technically, it may not be a phone.

The Google Phone may be a data only, VoIP driven device. And Google may be lining up at least AT&T to provide those data services for the Google Phone, says one person we spoke with today.

Users could still make calls just like a normal phone, of course. The calls would just be over the data service instead. In fact, this is the exact vision Google proposed back in 2007 when they were bidding on the FCC auctions for the 700MHz spectrum.

Google can even issue phone numbers to users via Google Voice. In fact, I’ve already ported my mobile number to Google Voice, and Google has plans to roll out that feature more broadly. Google Voice can also handle the VoIP function for the phone.

Are AT&T and the other carriers interested? Our source says AT&T is already bidding for the business, and may be willing to sell data to Google, with certain conditions, for $20/month. The carriers won’t love this, at all. But they’d be dumb to let their competitors take the business instead. Our guess is at least the U.S. GSM carriers, TMobile and AT&T, would support the phone.

Our sources at AT&T have confirmed that they’ll sell data-only plans to customers who bring in BlackBerry and Windows devices, and strip out the voice plan. They won’t do this with all devices – you can’t get a data only plan on the iPhone, for example. But AT&T is open to data-only customer relationships.

Will the Google Phone be data/VoIP only? Right now we only have one thin source for this. But we’re continuing to dig.

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At least two of the search suggestions still indicate newspapers are important and ‘not dying’.

Update: I’m definitely following Autocomplete Me from this point forward.

(Via TwitPic and a hat tip to @Wallie – you were right)

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Though they’d never admit to such a thing, the reasoning should be obvious: The longer you’re at your computer, the more time you’re spending on their sites. The more time your spending on their sites, the more ads you’re being served. The more ads being served, the more money they are earning. No matter why these sites originally started, or what features they add, that is, quite literally, the bottom line. They’d have us strapped to a chair with our eyes taped open like Alex in A Clockwork Orange, if they could. The only difference is that we’d have a contraption on our arms to allow us to click on the ads being shown every so often.

Thankfully, we don’t quite live in that world yet. And there are a couple factors pushing us the opposite way from that. Mobile devices are the biggest one. But even that is still just a screen. You may not be chained to a desk using it, but as plenty of people with an iPhone will tell you, you may end staring at this screen even more than you do a desktop or laptop monitor throughout a day. But there’s another up and coming factor working against our screen slavery: Location.

Social networking has been perhaps the most popular trend on the Internet over the past several years. At first the term was ironic. “Social networking” was anything but social in the traditional sense. But over time, we’ve grown accustomed to the idea that you can do social activities such as play games, collaborate on work, and talk, online. And in fact, many times it’s even more convenient than doing it in person. It’s social, but it’s a different kind of social.

Ever since the term was born, countless people have debated the implications of taking social interactions virtual. At one point or another I’m sure that it has been said that it would be both the downfall of mankind, and the thing that would bring the planet together. The truth is that social networking, while great in many respects, does not fulfill a fundamental human desire: To be in the actual presence of other people.

If you’ll allow me to be embarrassingly obvious for a second: Sitting in a chat room all day, even if all of your friends are in it as well, is not the same as being in the same physical room with them. Even if you all are having great discussions in the chat room, and not saying a word when you’re hanging out with one another, there is just something that’s different. Something that social networking will never be able to replace.

That’s where location comes in. It has the power to be the bridge between social networking and actual social interaction. We’re already seeing the very early signs of this with services like Foursquare, Gowalla, Loopt, Brightkite, and Google Latitude, to varying degrees.

To the masses, most of these services still either don’t make sense, or are way too creepy. Social networks used to be thought of in the same way. This will change.

The people who do use these services likely have at least one story about a situation where a friend saw where they were, or where they planned to be, and showed up to meet up. Some have many of these stories. And for some of us in cities where these services are popular, this happens just about everyday. And it’s really quite amazing.

Is it annoying if a friend shows up if you want to be alone or don’t want to see them? Of course. But that’s why it’s important that you’re in control of what location information you are sending out. Is it creepy if a stranger shows up to meet you somewhere? Of course, but that’s why privacy settings are so important.

Make no mistake, there are hurdles to location-based services gaining widespread acceptance. But the upside of it far outweighs the downside. And with that the case, these types of services are ripe to take off.

At the core level, using a social network to facilitate actual social interaction just seems to make sense. Though I poked fun at them in the intro of this post, don’t think that Facebook doesn’t recognize this. In some ways they already do this through their popular events offering. But anything they do with location — which it should be no surprise, they are working on — will go far beyond this. When you have a social graph with over 300 million users and you add a realtime location component into the mix, it’s going to change things.

I remember the first time I used sites like Facebook, MySpace, and Friendster (back in the day) to find people that I went to high school with who I hadn’t talked to in years. It was a little weird, but also in some ways exciting. Imagine that transfered into the real world. Maybe you’re in a city with a person you went to high school with, but hadn’t talked to in years. It’s unlikely that the two of you were ever run into each other randomly, but maybe you can get pinged by Facebook location when they’re nearby. Maybe neither of you want to meet, and that’s fine. But maybe you do.

The word we keep hearing over and over again for such situations is “serendipity,” but really it’s not. None of this needs to be left up to chance. It’s simply an extension of social networking into the real world.

Another social network, Twitter, is already in hot pursuit of such functionality. Any day now, the service will turn on its geolocation service which will both allow you to send tweets with your location tacked on, and allow you to pass in location information from other services, like Foursquare. As a service with tens of millions of users, Twitter will be the first massive test of location as an extension of social networking.

It may be a while before users start truly taking advantage of it since it is an opt-in feature. But eventually, I believe we’ll see more and more users opt-in to be able to use third-party clients like Birdfeed which let them choose which tweets to attach their location to and let people know where they are.

And beyond individual user data, this location data will be very interesting as an aggregate. Undoubtedly people will use things like Twitter’s geolocation APIs to make services that can show where people are flocking to in realtime. This is the next step for what services like SocialGreat are doing with location data, showing hot spots in towns. And we already know that Twitter is planning to use the data to tailor its trending topics to show the hot things being tweeted about in specific places.

Social networking up until this point has been great. But it’s also really a bit odd. The core concept is still to gather your friends in a virtual construct, while the companies behind these constructs convince you to hang out in them as much as possible. Instead, they should be using the interesting social data they have to help you connect in other places as well. That’s what makes Facebook Connect is so powerful. But that doesn’t extend to the real world yet. But with location, it could. And that’s exciting.

We’ll be discussing this and other topics at our Realtime CrunchUp this Friday in San Francisco.

[images: MGM and Warner Brothers]

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Sundar Pichai, Google’s VP of Product Management and Matthew Papakipos, Google Engineering Director for Google Chrome OS will be speaking at the event. And there will be a Q&A session afterwards.

As we reported a few days ago, Google had been planning to release at least part of Chrome OS this week. That still may be the case at this event, but it looks for now that the more complete launch will in fact take place next year. And if they are holding this event now with a “complete overview,” progress is clearly being made, so you can probably expect that launch to be early next year.

Google first announced Chrome OS in July, but gave very few details about it. It seemed the idea there was more to drop a nuclear bomb on Microsoft, which was just about to announce its online free version of Office. In the subsequent months, interest has remained high for Chrome OS, but about all we’ve seen is what the OS’s browser may look like.

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The details are of the fight are subtle, but all the hubub centers around what’s broadly called orphan works – where it’s hard to figure out the author/rights holder of a given work. Depending on how broadly you define orphan works, they make up between 2 million and 8 million of the 15 million or so books that have been published in the U.S. And while this is the apparent battleground, the real fight is over the whole Google Books scheme.

Google says they’re saving humanity, or something close. Which is probably a stretch. Their opponents, fueled by donations from Google competitors (among others), says Google wants to “establish a monopoly over digital content access and distribution; usurp Congress’s role in setting copyright policy; lock writers into their unsought registry, stripping them of their individual contract rights; put library budgets and patron privacy at risk; and establish a dangerous precedent by abusing the class action process.”

As usual, Paul Carr sorts it all out for us. And while the details of a legal settlement on how the rights around digitized copies of old printed books aren’t exactly riveting, the players involved sure do make it a lot of fun to watch.

…Because the Open Book Alliance isn’t led by just anyone. No, one of the guys in charge over there is Gary Reback (pictured above). The man who many credit with taking down Microsoft. I interviewed Reback a few months ago, and Google Books was one of the topics we discussed.

Reback was set to go on NewsHour to debate Google Books with the engineer that does most of the talking for Google – Dan Clancy. Both are quite able to defend their positions intelligently. Or at least, they would have. Clancy never showed up, leaving Reback at the studio, alone.

Why did Google back out? According to Reback, Google told the show that they didn’t want to put an engineer against a lawyer on TV: “They said I was a lawyer but Clancy was not, so the debate would be unfair.” Reback says that’s ridiculous. “Clancy goes around peddling his story and appearing on panels with lawyers all the time,” he said (which is true). Reback also notes that “Google has hundreds of lawyers, dozens of whom have worked on this. Surely, they could find a lawyer to debate if they were afraid to put Clancy up” (which is also true).

For their part, Google says they aren’t interested in debating the legal niceties of Google Books on broadcast television. Gabriel Stricker, head of search communications at Google, says that they were told Harvard profession Robert Darnton would be their opponent on the debate (his thoughts on Google Books are here, and wow he desperately needs an editor), and that Reback was added at the last minute. When they found out about the change, Stricker says, it was too late to find an appropriate Google attorney as a replacement.

Stricker says Google wants to have a “philosophical and ideological conversation about Google Books” in front of a mainstream TV audience, not a legal debate. And he adds “the fact that Gary finds it necessary to try to create conflict surrounding the existence of the conversation is exactly why we would prefer not to have a conversation with him.”

And I don’t blame him. Reback is the last person I’d want to debate anything with on TV.

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