The Guardian

As Google prepares to blow out the 10 candles on top of its birthday cake this Sunday, founders Larry Page and Sergey Brin can be forgiven for cracking a wry smile as they reflect upon the fire they have just lit under Microsoft.

The conflagration that has the creator of Windows running for the fire extinguisher was caused by Google's launch of its own internet browser. The arrival of Chrome, announced in typically idiosyncratic style through the medium of an online comic strip this week, represents more than just a challenge to Microsoft's market-leading Internet Explorer. It represents a fundamental fight over the future of the computer.

Microsoft, as so many potential rivals have found over the years, has a stranglehold over the market for the software that runs computers thanks to its hugely successful Windows operating system. So Google has taken heed of the old adage that if you cannot win, change the game.

The rise of broadband internet access has finally created an environment where applications such as word processors or spreadsheet programs do not need to reside on a computer. Instead they can be run on the internet and the documents created can be stored on web servers so they can be accessed from anywhere a person can get online. In a world where such web-based applications abound, it does not matter what operating system a computer runs because all it needs to have is an internet browser and an internet connection. In that world, a user could even opt for a free operating system.

It's a change that Bill Gates himself foresaw when 13 years ago he wrote an internal memo in which he assigned the 'highest level of importance' to the internet and warned his colleagues that it was a potential 'tidal wave' that could fundamentally alter the rules.

That memo mentioned then market-leading browser Netscape as having the potential to 'commoditize the underlying operating system'. That infamous memo was one of the catalysts of the browser wars of the late 1990s, which ultimately saw Internet Explorer crush Netscape Navigator, and it also included a line about ensuring that makers of computers ship their machines with a Microsoft browser pre-installed. That practice landed Microsoft in court and led to the effective split of the company. But by then the damage was done and Netscape ended up in the hands of AOL before disappearing all but completely.

When Gates testified as part of the anti-trust case brought against the company 10 years ago he was asked what that line about 'commoditizing the operating system' had meant. He replied: 'They were creating a product that would either reduce the value or eliminate demand for the Windows operating system if they continued to improve it and we didn't keep improving our product.'