The new OS will be known as Chrome, and will be a freshly designed Operating System targetting machines such as netbooks with a heavy bias towards web usage.

The announcement was made yesterday at the official Google blog.

The Google Chrome OS will be an Open Source project, essentially this means that the community will be able to contribute to its development and that it will be available free of charge.

This announcement is not that surprising, it is a logical path for Google to follow, but it will raise serious concerns at Microsoft who rely heavily upon revenue generated from the operating systems that all of our PCs use today.

Furthermore it could also disrupt the businesses of anti-virus software vendors as Google will strive to build in the required defences.

It could even disrupt the longstanding Intel/AMD fastest processor chip race.

It is a further step towards greater reliance on web-based solutions e.g. Software as a Service (SaaS), or cloud-based computing.

We will all need less programs on our computers, and be increasingly reliant upon internet connectivity. Therefore, the announcement provides a boost to major ISP players such as BT and Virgin.

Coupled with Google’s recent announcement of their all-encompassing Google Wave communication tool (email, chat, etc all in one), this news trumpets major step change developments in the year ahead:

• Faster performance from our machines
• Less bloat on our machines
• Less machine software maintenance
• Faster connections
• Enhanced productivity; getting more done quicker
• More reliance on SaaS and online storage

Checkout this article at the BBC website.