Ballmer just laughs off the operating system being developed by Google (and now the open source community), but you can't deny that Google's lined up to hit a home run.
The new operating system is designed for netbooks -- those mini computers that you can buy for as low as $150. In a demonstration today, Google showed how fast the new operating system is -- booting in somewhere between 5 and 6 seconds -- and explained their vision to the world.
Google isn't looking to replace all computers or operating systems -- they are looking to make something that will work very well for most people. They are targeting those who want fast, hassle free, zero worry, web capable computing.
In a 3 minute YouTube video, Google explains how their operating system is different from traditional computers -- and they do it very well. The concept explained in the video is easy enough for anyone to understand and "buy", and that's part of the reason why I think Microsoft should be worried.
Netbooks are typically "companion" devices -- they are typically purchased to supplement existing computers. Google Chrome OS is all these computers should need.
It's going to be a really long time before Microsoft can ever create a version of Windows that cold boots in 5 seconds, gives users 100% security, is free, and has the entire open source community behind them.