"'I don't know if they can't make up their mind or what the problem is over there, but the last time I checked, you don't need two client operating systems,' said Ballmer. 'It's good to have one.'"

While Ballmer loves to trash-talk the competition, there's little doubt that Microsoft isn't scoffing at Chrome OS-vaporware or not. Android's initial success has proven to the tech industry that Google is serious about being a player in the mobile and desktop operating system markets. Meanwhile, Microsoft, with its (sort of) new Bing site, is doing all it can to steal market share and advertising dollars from Google's search engine and cash cow.

With its exceptionally deep pockets, Google is the strongest competitor to challenge Microsoft's Windows empire in a very long time. And all joking aside, it wouldn't be surprising if the Chrome OS is causing Ballmer & Co. to have more than a few sleepless nights.