logo.jpgAs operating systems based in the Internet “cloud” are set to shake up the OS market, Xcerion is pushing forward with its cloud-based system — which, as of today, has been officially dubbed icloud.

Incoming VentureBeat writer Dean Takahashi wrote about Xcerion, which went into a developer testing mode in September 2007, in the San Jose Mercury News earlier this month. Dean notes that the company’s technology is particularly relevant now, because as Google and Microsoft face off over the latter’s $44.6 billion Yahoo takeover bid, there are other battles on the horizon, including a big one on the OS front. Google is reportedly thinking about developing an operating system where computation is done not on your desktop but, via the web, on the company’s servers. While it’s hard to imagine anyone really threatening the dominance of Microsoft Windows, Google would probably have the best shot.

Meanwhile, Xcerion has some great ideas of its own, and if icloud doesn’t take off, it may be blazing the path that Google follows. There are probably plenty of users who’d like to install an OS that uses virtually no space on their hard drive, and which they can access remotely. While Ars Technica is skeptical, Dean seems reasonably impressed.

The company developed its technology for six years before unveiling it. Here’s how it works: You install icloud on a Windows, Mac or Linux machine. Once installed, it will create a desktop that sits within your existing OS, but is accessible from any Internet browser or web-enabled cell phone. The OS only occupies about 1.5 megabytes of your hard-disk space — everything is stored online, according to Dean.

The Scandinavia-based company says applications like instant messaging, money managing and a media player are already available, and icloud plans to add a new application every month. All the application source code is available to other developers, too.

The company has raised around $12 million.