Google announced updates to its Chrome OS and partnered with Samsung and Acer to release a bunch of Chromebooks at its I/O conference. What's baffling to me is that the $429 (Wi-Fi only) and $499 (Wi-Fi and 3G) Samsung Series 5 and $349 Acer Chromebooks are as expensive, if not more so, than Windows-based netbooks.
The updates to Chrome OS, meanwhile, consist of a better-looking file manager, support for cameras, and offline support for Google Docs. That's not compelling enough and begs the question: Who would spend this kind of money on netbook hardware that runs on an unproven platform? Well, the answer may lie in Google's other announcement.
In addition to the Samsung and Acer Chromebooks, Google also announced that it will launch a leasing program for educational institutions, government agencies, and businesses. Rather than plop down a few hundred dollars for each Chromebook, Google and its partners will offer systems for rent: $20 per user per month for schools and government entities; $28 for businesses. This doesn't include apps, which runs an additional $50 annually, or $5 per user per month. Remember, monthly subscriptions to the hardware is subject to change based on bulk purchases and how prices are negotiated. This is how it works with Windows-based netbooks sold to educational or government institutions.
This hardware rental doesn't come with just a basic parts and labor warranty; Google is also providing services and software solutions that would presumably get these Chromebooks up and running in an IT infrastructure. Let's face it: More businesses, especially the smaller ones, are evaluating Google Docs and Gmail against offerings from Microsoft. This is purely for cost-savings, as the price of a Microsoft Exchange and Office license can buy an entire fleet of laptops. A reasonably priced monthly (or annual) subscription for hardware and a reliable set of applications would make a compelling case for moving to the cloud, specifically to Google as the cloud provider. And the prospect of not having to deal with virus protection, constant software patching, and losing data to computer crashes has to raise a few brows.
IT managers will obviously have concerns about mixing Chromebooks with Windows-based laptops, and there will be the usual arguments of them being rejected in a domain, but the potential cost-savings is simply too serious to laugh off. And for many students and employees, a Web browser and access to a few office applications are all they need in a typical day. I'm pretty sure Microsoft has nothing to worry about, but hardware companies like HP, Dell, and Lenovo, which have a vested interest in education and small business, will be working especially hard now at finding their own cloud contender and evaluating a similar leasing program.