Microsoft is the top dog of the OS market. It is the undisputed champion of this very mature market that is still worth billions every single year. Well, if present trends regarding hardware continue, Microsoft’s dominance in the OS field might go the way of the dinosaur. One red flag that should ring alarm bells at Redmond Washington-based Microsoft? Why the prominence of Chromebooks at CES. Chromebooks were all over the place. Toshiba was showing off their Chromebooks, Intel was showing off their Chromebooks. In fact, Intels Chromebook offering was the centerpiece of its booth. Dell also had its Chromebook on display. The increasing popularity of the Chromebook should make Microsoft very worried. Why? The Chromebooks’ operating system is free. Moreover, the Chromebook focuses less on the local software and is powered by the internet. As long as you have an internet connection you could use a Chromebook. Since, wireless networks have become all pervasive, Chromebooks have become more practical.
Another reason why Microsoft should get concerned is that Chromebooks tend to run cheap. How cheap? We’re talking about 199 dollars to 249 dollars. Once these big brands get the Chromebook concept safely into the popular imagination, expect the price of Chromebooks to drop even further as cheaper hardware manufacturers enter the market. This is not paired with the revelation that traditional PC and notebook sales have been declining. For the past seven quarters, Microsoft executives definitely should start loosing sleep.