Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Don't laugh, Chromebooks will likely seduce a lot of businesses

By | May 12, 2011, 11:00am PDT

Summary: Don’t underestimate Google’s Chromebook for Business program. It will entice a lot of organizations to consider ditching Windows for Chrome OS. See how it could save big money and win over CIOs.

Most of the IT professionals I know scoff or snicker when I bring up the topic of Google Chrome OS. But, just as IT pros used to roundly dismiss the idea of cloud computing — and many of them are now climbing over each other to tout their cloud and virtualization expertise — it might not be long before IT also warms up to Chrome OS, out of necessity.

On Wednesday at Google I/O 2011, Google unveiled Chromebooks and the Chromebooks for Businessprogram. Google made a hard sell for its cloud-based PC platform and for the new business program that will allow businesses to rent Chromebooks for a low monthly cost per user.

Google claims that by deploying Chromebooks instead of traditional PCs, companies can reduce the total cost of ownership for business computers by 70%. That’s a whopping number and we’re still trying to figure out where Google came up with that amount, but most of it is based on eliminating PC management tasks — security, software patches, anti-malware, and OS and software deployment.

Here’s a video that sums up the pitch Google is making to businesses:

If you’re already familiar with the Chrome OS and Google’s CR-48 pilot program then you know that it is essentially a bootable Web browser that handles all of its apps and storage in the cloud. In IT-speak, it’s a laptop thin client.

On Wednesday, Google also said that it’s also going to make a “Chromebox” desktop for non-mobile users who want to hook up their own keyboard, mouse, and monitor. It even showed off a prototype that appeared to be made by Samsung and looked like a cross between an HP thin client box and a Mac Mini.

However, the first two Chrome OS products will be Chromebook laptops from Samsung and Acer and they will be released in the US (as well as the UK, Netherlands, France, Germany, Spain, and Italy) on June 15. The Acer will cost $349 and the Samsung will be $429. These are both ultra-thin, light laptops in the mode of the MacBook Air — but for less than half the cost.

Here’s a quick peek at the hardware:

While Chromebooks will give consumers the opportunity to buy a slick laptop at a netbook price, Google is offering a different kind of deal to small companies, non-profit organizations, and the corporate world. It will rent these laptops in bulk to businesses for $28/month per user ($20/month per user for schools and educational institutions). That price will include tech support, rapid hardware replacement, automatic background updates, a Web-based management console for IT professionals (for managing users, apps, and policies), and a hardware refresh every three years.

Here are the slides from Google I/O where the company made the pitch for what Chromebooks have to offer and how the Chromebooks for Business program will work:

At I/O 2011, Google also announced some important updates to Chrome OS — including some stuff that will be absolutely necessary in order to make this functional for average users. First and foremost, Google announced a file manager and some limited local storage options (mostly for caching cloud-based files). This will enable users to connect cameras and storage devices and import their files to cloud-based services like photo sharing sites, online office suites, and document repositories. In some cases, the Web apps may need to do a little work to turn their services into Chrome OS apps that can access the hardware via Chrome APIs.

However, the biggest benefit of the new storage updates in Chrome OS is that it helps enable offline apps. In 5-10 years we’re likely to have cheap, ubiquitous Internet access, but the today’s reality is that whenever people are away from home or the office, connections are often spotty and inconsistent. That makes offline access to critical apps essential, and it’s one of the biggest things that professionals worry about when it comes to a cloud-based OS.

“We’ve worked hard to make many, many applications available offline,” said Sundar Pichai, senior vice president of Chrome. He said Gmail, Google Calendar, and Google Docs will be ready for offline availability this summer.

From a business perspective, the one big feature that’s still missing is built-in VPN support. Many VPN solutions have Web-based logins — and I successfully tested CBS Interactive’s SSL VPN client on Google’s CR-48 Chrome notebook — but a standard VPN option will need to integrated to simplify the user experience. Google has promised that VPN will be added, and the feature has already started showing up in the Chrome OS dev channel.

A number of companies have already publicly admitted that their IT departments are running major trials of Chromebooks, including the City of Orlando, Logitech, Jason’s Deli, American Airlines, Ruby Tuesday, National Geographic, and others.

In an official statement, Jason’s Deli said, “The Google Chrome notebooks are almost effortless to manage. Staging, imaging, updating, and repairing software problems are almost non-existent issues at this point. Replacement is as simple as handing out a new device with no IT involvement necessary.”

Based on the early returns, Google said companies can switch 75% of their users to Chromebooks.

“We think this can fundamentally change the way people manage computers in business,” said Pichai.

Google co-founder Sergei Brin added, “The complexity of managing your computers is torturing users out there. All of us. That’s a flawed model fundamentally. Chromebooks are a new model.”

Bottom line

A lot of IT professionals will still laugh at the idea of Google’s Chrome OS, since most of them would never want to use such a limited system and can name plenty of business users who could never be converted to a cloud machine — graphics designers, accountants, architects, etc. However, all of those could safely fit into the 25% of users who Google says aren’t candidates for Chromebooks (versus the 75% who are).

Chromebooks may still be a little bit ahead of themselves until offline access and VPN support are ready in the coming months, but I think the lure of Chromebooks will prove to be very attractive to a lot of businesses and organizations starting in the second half of this year.

Two years ago when Google first announced Chrome OS, I wrote 3 reasons it matters, and 4 reasons it’s irrelevant. However, that was before IT embraced cloud computing and virtualization on such a broad scale, which has drastically reduced the need for powerful desktop computers for many corporate users (and the trend is expected to accelerate in the years ahead). That, coupled with the fact that most internal applications are now delivered via a Web browser, means that the best thing Google may have going for it with Chromebooks is timing.

The time is right for a thin client solution to replace the overcomplicated mess that is corporate PC deployment and management. Google is right about that, and there’s a growing legion of CIOs — still of a vocal minority of about 30% — that are clamoring to reduce IT spending by moving to thin clients or desktop virtualization. Google’s solution could give many of them exactly what they need.

Over a three-year rental period, a business would pay $1008 for a Chromebook plus another $150 for Google Apps. That’s roughly about the same cost most businesses would pay Microsoft for a seat of Windows, Microsoft Office, and a CAL for Microsoft servers (as part of an Enterprise Agreement with Microsoft). However, with the Google deal, the company also gets desktop hardware and it can eliminate or at least greatly reduce most of expensive server hardware and backend Microsoft software. For many businesses, that kind of equation would be very lucrative, and way too tempting to ignore.

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This was originally published on TechRepublic.

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Jason Hiner is the Editor in Chief of TechRepublic. He writes about the products, people, and ideas that are revolutionizing business with technology.

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Jason Hiner

Jason Hiner has nothing to disclose. He doesn't hold investments in the technology companies he covers.

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Jason Hiner

Jason Hiner is the Editor in Chief of TechRepublic, an online trade publication and peer-to-peer community for IT leaders. He is an award-winning journalist who examines the latest trends and asks the big questions about the technology industry. He previously worked as an IT manager in the health care industry.

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I guess you haven't discovered the internet
GoPower 23rd May 2011
because with just a browser you can do a tremendous number of things. In fact there are whole groups of people who don't need anything else.

@tonymcs@...
Ha ha ha ha haha ha! lol ! chromebooks! lol!
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@browser.

Yep still laughing.

I'm sure I've got an old CP/M machine with Wordstar that has more functionality than a Chromebook.

But trust an advertising company, they'll never see you wrong

You also seem to be trolling alone Donnie. What happened? The other Google fanbois actually tried one?
@tonymcs@...
"You also seem to be trolling alone Donnie. What happened? The other Google fanbois actually tried one?"

That or the other Google fanbois aren't fanboys and actually evaluate products before praising them instead of blindly bashing/supporting certain companies. I like Google, but I wouldn't buy this unless it costs $150 or less, which I think is possible if they went with ARM chips instead.
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because with just a browser you can do a tremendous number of things. In fact there are whole groups of people who don't need anything else.

@tonymcs@...
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You're probably right, Jason.
Userama Updated - 12th May 2011
And "seduce" is a good way to put what Google is trying to do. But, hey--who cares if it won't do what you need to do? Just as long as it's cheap. CIOs (and CFOs, CEOs, etc., etc.) LOVE cheap.
P.S. How much you wanna bet that governmental agencies will be among the earliest adopters?
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Microsofts to lose, not Google's to win
guihombre 12th May 2011
Microsoft essentially own the desktop, I think for Google to win that market, Microsoft have to lose it. No CFO will stick their neck out unless they have no choice.

It's if MS misteps.
browser for years to give Firefox, Safari, and Chrome a huge opening. Responding very late to secure Windows, and it is STILL insecure, way too many attack vectors. Late to challenge Google in search, and now in online office suites. They let Apple and Google take over the mobile phone market while they slept. They let Apple take over the tablet market and have no response.
and how's that working out?
Not even close to what the stories stated.

Ironic, isn't it?
They laughed at Android. How is this all working out for Microsoft?
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@DonnieBoy
Boy, one win in a whole string of loses, and that's all you can bring up?

We're talking Laptops alternatives to Windows.

If you want I can go back and link the multitude of replys from you and bloggers as to how much MS was in trouble now, how MS just could not compete with Linux netbooks.

I think the words "Windows Killer" was floated by you quite a few times, some of the die hard FOSS bloggers, too.

Still working out?
@DonnieBoy

and I'm afraid we are still laughing at Android. Which version do you champion Donnie, just so we can laugh at that one as well?
@Will Pharaoh

Ouch!
Ha Ha Haaaaa Heeeee Haaaa... anybody with a sound mind is not going to buy a chrome laptop.
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You said that.
Will Pharaoh 12th May 2011
@DonnieBoy
wasn't it something like "Google will do it cheaper and better, Apple just can't compete against a company like Google"?

Not exact words, but the feelings there.
@DonnieBoy Doubt you did, but you keep trying to convince yourself.
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My favorite statement
LiquidLearner 12th May 2011
While Chromebooks will give consumers the opportunity to buy a slick laptop at a netbook price

You mean it gives consumers the opportunity to buy a netbook at a higher than netbook price?
also be much more secure and reliable than the typical netbooks being sold today.
@DonnieBoy As long as you are connected.
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Nice catch. It's not a laptop, you're right
Will Pharaoh 12th May 2011
@LiquidLearner
LOL!
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I think it matters!
kikl 12th May 2011
Google has the brand recognition and expertise to push this product. Sure, there may be users who need to render videos or do animation. They won't want a simple laptop anyway. However most users - business and private - use E-Mail, Office and a Browser. That's it! If you need to do some heavy lifting, use a safe and centralised Linux server that runs the app (virtualized in windows) and let the chromebook access the app via the web-interface.
might need a Windows desktop for today. But, right now, on say 75% of the desktops, governments and enterprises can save a small fortune, and at the same time greatly improve security.
@kikl

Expertise in what, selling ads? Is that how Google is going to sell this product?

If your job is to read mail and surf the web then you are making $8 an hour as a receptionist so then why would I drop $400 for a canibalized netbook without a full OS when I can get one with Win7 for the same price and have my receptionish atctually be more prodcutive like using an office suite, creating presentation materials, etc..
Maybe to replace Thin Clients but not real desktops and even then I'm skeptical.
@DonnieBoy

Yep, and it is called Windows 7, not a browser trying to be an OS...
pretend that security does not matter. It is rather obvious that they make lots of money keeping it held together with duct tape and bailing wire, running on a wing and a prayer. They do not like the idea that they would not be needed.
@DonnieBoy - interesting you seem to fall in that category, but for Google. How does that mirror work anyway?
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but it doesn't change the fact with no effective way to manage, provide usage policies, monitor usage, direct user authentication with servers and in house applications they will be a no go on any large scale. Most organizations, schools, and businesses cannot be locked into this type of technology.

You can blame the IT guys if you want but most times we are right when it comes down whether or not something will work or not. Instead we get told by CEOs, Presidents, and Directors to "Make it Work" or "Find a use for it"
You have a point; this could definitely happen. It all depends on the available applications. I could get about 60% of my work done on a chromebook. But how are they going to enable me to do the other 40%?
@Imrhien - Citrix access to apps running on centralized Windows servers.

It's basically a leased thin-client with no need to host desktop OS boot servers. For key apps that absolutely require Windows, you'd have to use remote app execution methods like Citrix.
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Slick Laptop at a Netbook Price?
vel0city 12th May 2011
"While Chromebooks will give consumers the opportunity to buy a slick laptop at a netbook price"

How is an Atom processor with a 16GB hard drive and 2GB of RAM a slick laptop, not a netbook? And since when was $1008 ($28/mo x 3 years) a decent price for a low end netbook?
There is no reason to laugh at. I think this is the future. These chromebooks can be extremely portable, energy efficient yet powerful, not to mention cost effective. After all, this could be a serious force to replace tablets and laptops altogether in few years.
None of the people saying "ridiculous" are wrong ... they're just failing to understand that it's just ridiculous for them , and that even though they haven't encountered them, there are a LOT of SMBs and others who will find this attractive.

Btw, I believe they said gov't agencies are $20/unit as well. There are a LOT of village/city/county agencies struggling to afford desktop costs.

This could peter out, it might be ahead of its time ... but we could also see a few early-adopter pebbles succeed, and it build toward an avalanche.
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A couple of points I haven't heard discussed
daboochmeister 12th May 2011
Haven't heard mention of the strategic aspect of this tying into Google Apps for Business accounts - reading between the lines, I'm surmising that to enter into one of these contracts, you would establish your business on Google Apps, that that would be a requirement. So basically, another view of the ChromeBook is that it's another way to license Google Apps for Business - with hardware included.

And I haven't heard anyone ask "why Acer and Samsung, and not Dell and HP?" I'm guessing Google would have loved to have a Dell or HP in the stable on this, but that those companies weren't biting on not being able to co-market/bundle software onto the machine.

And I haven't heard anyone talk about Sundar's assertion that, though their partners won't like it, every single ChromeBook will absolutely support rooting, as part of the license. That may also be part of why no Dell/HP. I'm wondering what dynamics and use cases this will lead to.
Me? No. It's too insecure. If I am investigated, the feds need a warrant for my hard drive. Not so if my data is in "the cloud." I'll Pass.

Poll: Will you buy a Chromebook?

Link: http://www.wepolls.com/r/366550/After-Google-I/O,-are-you-interested-in-a-Chrome-notebook
Organisations can use their owns servers and store their docs there....and citirx with virtual desktop and cloud virtualsiation can give you all the software you need.

but by saying that it would take time and chrome is in a developing process.. initially the sales wont be high but with time ot would pick up... generally the google way is slow and steady except in search business...
I am more excited about the chrome box though..nice thing that can be
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Interesting...
jessiethe3rd 15th May 2011
Still the cost to value ratio is terrible.
Ha, Ha, Ha, Ha.
No way, no how. It is more expensive, it does not integrate well with existing systems. Maybe it gets 1%, but I doubt it.

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