Google Chrome OS
I had to do a double check if it's not April 1st. Why Chrome OS? And why not Android?
Firstly, this does not sound like another Linux distro. Yes, it might run on top of a Linux kernel and borrow some UI code, but you can think of this as a web browser that runs on the bare metal. What use is such a thing? (ASUS is already doing something similar by embedding a stripped down Linux in their motherboards. It boots in a couple of seconds and lets you browse the web and check your email.)
Google makes money off people using the Internet. More than that, they especially benefit from stuff that runs on open platforms - HTML and JavaScript as opposed to Flash and Silverlight. Hence the massive investment in technologies such as GWT and Gears that enable full-blown interactive applications inside a browser using widely understood open standards. The more people publishing useful stuff on the web, the more Google stands to benefit. The more users on the web, the more Google stands to benefit.
The Chrome OS could work quite well on a stripped down netbook (even lower spec than what we call a netbook today), touch-screen tablets, or minimalist desktop computers with specs along the lines of netbooks.
Given the recent popularity of netbooks, and Microsoft starting to push Windows 7 to OEMs instead of the ancient XP, maybe Google is hoping that some of them will jump ship and give Linux a second chance. What's going to be different this time? If you don't pretend it's a full-blown computer but rather a web-only "device", it's easier to sell it to people who already have several computers in their household.
The ultra low hardware requirements mean that the machine itself should be cheaper to produce too, so once again adding to the "it's a web appliance, not a computer" selling point. Lastly, this must have been fairly easy to do from a technical standpoint. It's simply repackaging a bunch of existing code into something usable so not a hugely risky project for Google.
If some Taiwanese manufacturer jumps on board and produces anything even remotely successful based on this software, it only further entrenches the Web as an application platform. And that, I think, is exactly what Google is hoping for. It's very much the same thinking as that behind Android, just aimed at a different segment of the hardware market.
UPDATE: Further reading - coverage from around the web:
July 8th, 2009 - 10:49
what about for cellphone use to penetrate the african market and establish a foothold in an untapped area?
July 8th, 2009 - 10:54
I think it’s a distinct possibility – especially with the stated availability of an ARM port (the iPhone and many other smartphones run one version or another of the ARM CPU). But I also think that Android fills that niche better – it has many phone-specific apps already such as SMS, email client, stills/video camera, and supports Java/Dalvik apps.