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In the announcement, Google stresses that this operating system is a completely new project and not affiliated with Google's Android OS, which, according to Google, was always meant to run on a variety of devices, including netbooks. Google acknowledges that the two operating systems might overlap in some areas, but the company believes that, ultimately, "choice will drive innovation for the benefit of everyone, including Google."

Here is how Google describes the OS:

Speed, simplicity and security are the key aspects of Google Chrome OS. We're designing the OS to be fast and lightweight, to start up and get you onto the web in a few seconds. The user interface is minimal to stay out of your way, and most of the user experience takes place on the web. And as we did for the Google Chrome browser, we are going back to the basics and completely redesigning the underlying security architecture of the OS so that users don't have to deal with viruses, malware and security updates. It should just work.

The Google Chrome OS will run on top of a Linux kernel, though the exact details about the actual implementation are still vague.

Purists complained that a browser isn’t actually an operating system, and brought up mundane issues about hardware drivers, memory and processor management, and other red herrings. Sure, they were right - the Chrome browser isn’t an operating system. It is, you could say, sans the bag of drivers needed to meet the definition. Still, the writing was on the wall - Google quite clearly saw Chrome as an operating system that competes with Windows.

Fast forward to today. The Chrome browser now has 30 million active users, says Google, and tracking services say it has 6% or so market share. Not bad for a browser that’s less than a year old.

And now, WOW. Google just bolted a big ol’ bag of drivers (also known as the Linux kernel) to Chrome and are calling it the Google Chrome Operating System. It’s going to be hard for people to continue to deny its operating systemness now.

But let’s be clear on what this really is. This is Google dropping the mother of bombs on its chief rival, Microsoft. It even says as much in the first paragraph of its post, “However, the operating systems that browsers run on were designed in an era where there was no web.” Yeah, who do you think they mean by that?

And it’s a genius play. So many people are buying netbooks right now, but are running WIndows XP on them. Windows XP is 8 years old. It was built to run on Pentium IIIs and Pentium 4s. Google Chrome OS is built to run on both x86 architecture chips and ARM chips, like the ones increasingly found in netbooks. It is also working with multiple OEMs to get the new OS up and running next year.

Obviously, this Chrome OS will be lightweight and fast just like the browser itself. But also just like the browser, it will be open-sourced. Think Microsoft will be open-sourcing Windows anytime soon?

• Google sees a browser-like experience being key to netbooks and believes that rather than just surf the web, consumers want to play and use the apps.
• Microsoft, which has not ported its Windows 7 to ARM-based chips that will be designed into the future version of netbooks, and which has priced Windows 7 for Intel-based netbooks fairly high, will be scrambling if Chrome OS succeeds.