Google confirmed Google Chrome, a new open source web browser which is going to hit us today (beta version of Google Chrome on September 2^nd 2008 in more than 100 countries). Though rumors have been around, we got a confirmation when a 38 page comic book, drawn by Scott McCloud, which detailed Google’s Chrome web browser was reported and could be accessed.

I am going to be one of the early adopters and even if it fulfills 60-70% of its objectives, then it is going to be quickly grabbing the browser market share. Where does this leave Firefox/Mozilla?

Google accounts for most of the revenue for Mozilla. Google pays to be the default search engine in the Firefox search box on the top of the browser. They also have Amazon in the search box, and other services, which provides affiliates fee as well but few do. As a result, Google accounts for 85 percent of Mozilla’s 2006 revenue of $66.8 million. Lot of people search for results using the Firefox search box as it is easily accessible and saves click/typing of the URL. This business model was very attractive and it’s no surprise that there were attempts to cash on this model – Flock.com has been trying to build user base by creating a “social browser”, basically a wrapper with value-added services (like bookmarking tools) on top of Firefox. They have not been able to create enough value to push mass adoption and hence have never threatened Firefox market share (also they share revenue with Firefox as well).

Hence, it is very crucial for Firefox to keep its market share to ensure continuity of revenue from Google. So, the success of Chrome Browser could be the first real threat to Firefox.