Please ensure Javascript is enabled for purposes of website accessibility

Revealed: Google's Strategy for Killing Windows

By Tim Beyers – Feb 19, 2014 at 9:00PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

A deal to bring Windows apps to Chromebooks could prove to be problematic for Mr. Softy.

Google (GOOGL -1.02%) strategy is to kill Microsoft's (MSFT -0.04%) Windows, Fool contributor Tim Beyers says in the following video.

How will it happen? A recent deal with VMware (VMW -0.07%) that brings the company's Horizon desktop-as-a-service software to Chromebooks might speed things along by allowing those who use the devices to access Windows apps directly in the browser.

Tim says it's a potentially disruptive move that could take some time to manifest. Yet that isn't stopping Google from hyping the deal. In a press release, Amit Singh, president of Google Enterprise, said companies could save "$5,000 per computer" using Chromebooks in place of traditional PCs.  Whether or not that's fair math is an open question. What's clear is that this is a long-term threat to Mr. Softy's business, especially when you factor in the slowing pace of PC sales.

Investors should also note that Microsoft's Windows Division is third-largest by revenue and second-largest by operating profit. Tim says new CEO Satya Nadella must not let anything impede his company's ability to sell new Windows licenses, yet that's exactly what Google is trying to do.

Now it's your turn to weigh in. Would you switch to Chromebook if you could be assured of safely using Windows apps? Or is Google's strategy wishful thinking? Please watch the video to get Tim's full take and then leave a comment to let us know what you think and whether you would buy, sell, or short Google or Microsoft stock at current prices.

Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Google at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends and owns shares of Google and VMware. It also owns shares of Microsoft. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet (A shares) Stock Quote
Alphabet (A shares)
GOOGL
$97.46 (-1.02%) $-1.00
Microsoft Stock Quote
Microsoft
MSFT
$247.49 (-0.04%) $0.09
VMware Stock Quote
VMware
VMW
$119.26 (-0.07%) $0.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
356%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/27/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.