However, FBR Capital Markets Corp. ) David Hilal said Google could capture some share on the netbook front, but could find it tough to get beyond that.

"I really don’t picture Google going upstream to laptop or PC market," he said in an interview with MarketWatch.com. "They may try, but that is a much tougher row to hoe."

Comparing the Chrome OS to its Chrome web browser, Google said it is "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 move represents a natural progression for Google, which for years has been experimenting in applications beyond its search. Its most successful experiment is undoubtedly Gmail, which earlier this week left its beta phase after five years. Since Gmail’s inception, the company produced Google Apps, which gives users a central location for calendar, word processing and spreadsheet applications-all of which are compatible with Microsoft Office applications.

Google Apps, a prime example of cloud computing, allows for a more consistent collaboration between users: Instead of emailing attachments, the document will be on a central server where anyone with permission can access edit it within the web browser from any computer.

Chrome OS will utilize the same "cloud" that Google Apps is using. For app developers, "the web is the platform," Google said. This will give Chrome OS a competitive advantage over the top three operating systems on the market right now (Windows, MacOS and Linux) because any app that runs in the Chrome OS will also run on the others.

"We hear a lot from our users and their message is clear-computers need to get better," Google said. Whether Google can make an impact on the quality of computers is an entirely different issue.