Google last week announced that it would launch its long-anticipated operating system, based on the open-source Linux kernel and built around its , sometime in the second half of 2010. The new Web-centric operating system will be dubbed .

Though analysts agreed that the Windows hegemony is safe in the short term, Google has the financial muscle, engineering might and industry clout to survive a long-term battle with an industry powerhouse like Microsoft.

"Google doesn't need an operating system to support its revenue stream," said Dan Olds, an analyst at Gabriel Consulting Group Inc. "They have lots and lots of revenue from their advertising bread and butter. That means they have [the] staying power that's critically important in this market."

Michael Silver, an analyst at Gartner Inc., said that Microsoft is unlikely to ignore the threat to Windows. "Microsoft, after all, is one of the more paranoid companies around," he said.

He added that Microsoft is unlikely to be adversely affected by Chrome OS in the short term.