IBM briefings outline OS/2 strategies and directions

Business Wire

April 15, 1991

NEW YORK -- In a series of briefings being conducted here this week, IBM is outlining comprehensive hardware and software strategies for the desktop, with particular focus on the future direction of its enhanced operating system, OS/2.

IBM President Jack Kuehler, addressing a gathering of IBM dealers in San Diego today, said, ``The need for OS/2 in the marketplace remains stronger than ever. Quite simply, our customers need an operating system that will enable them to invest confidently in their future applications. OS/2 continues to be IBM's long-term strategy.''

At the week-long New York meetings, James A. Cannavino, IBM vice president and general manager, Personal Systems, said, ``IBM is fully committed to the ongoing development of OS/2, including Presentation Manager, and this week-long forum provides an excellent opportunity for the company to articulate its OS/2 plans to our customers and the industry. As part of these plans, IBM intends to deliver OS/2 2.0, a powerful integrating platform that will provide a better DOS than DOS and a better Windows than Windows.''

Senior IBM executives will meet with customers, independent software vendors, consultants, financial analysts and the press to address a wide range of hardware and software topics. These topics will be highlighted by demonstrations of IBM OS/2 2.0, the powerful, 32-bit advanced operating system that will be generally available later this year. In conjunction with these briefings, PC manufacturers and independent software vendors will emphasize their commitment to OS/2 and highlight current and future projects underway for OS/2. In addition, IBM today announced a development agreement with Micrografx, Inc. Micrografx, located in Richardson, Texas, is a leading developer of OS/2 and Windows- based graphics applications. Repositioning OS/2 for pervasive acceptance, IBM also announced pricing and promotional offerings for OS/2.

A summary of key points to be discussed throughout the week follows.

OS/2 2.0 o OS/2 2.0 is IBM's 32-bit, advanced function operating system positioned by IBM as the platform of choice for the industry; o The ability to run DOS, Windows and 16-bit and 32-bit OS/2 applications concurrently from a single operating system makes OS/2 the ``integrating platform'' for the enterprise; o By exploiting current and future technologies such as networking, multimedia and object-oriented programming environments, as well as exploiting 386SX and higher hardware platforms, OS/2 2.0 protects customer investments while moving them into the future; o OS/2 2.0 will be more extensively tested than any other IBM Personal Systems software product and, before its general availability, will have been tested by more than 1,000 beta test and Early Experience Program participants.

IBM/Micrografx Agreement o Micrografx will develop migration tools and performance enhancements for OS/2. o These enhancements and tools will include:

- Faster application execution in OS/2 2.0;

- The ability to run Windows applications as high-performance OS/2 2.0 Presentation Manager (PM) applications;

- Toolkits to port Windows device drivers to OS/2 PM;

- Additional device drivers in OS/2 for use by PM applications;

- And a data-driven business graphics application as a desktop accessory.

OS/2 Pricing and Promotional Offerings o As OS/2 becomes a pervasive operating system, IBM has adjusted its price accordingly to reflect the product's broad acceptance; o Effective April 17, OS/2 1.3 Standard Edition will be $150; OS/2 1.3 Extended Edition will be $690; o Effective April 17, IBM DOS users can receive OS/2 1.3 SE for $99, and OS/2 1.3 EE for $635; o In addition, promotional offerings are available for customers to move to OS/2 1.3 and 2.0 to reap the benefits of a high-performance, advanced operating system.

IBM OS/2 Extended Edition and OS/2 LAN Server Solutions o OS/2 Extended Edition, which consists of Communications Manager, Database Manager and LAN Requester components will be repackaged as two separate offerings.

- One offering will be an extended services package that includes the Communications Manager and Database Manager;

- The LAN Requester component of Extended Edition will be included as part of the OS/2 LAN Server product. o These OS/2 products will be enabled to run on both IBM and IBM-compatible PC platforms which offer OS/2 versions 1.3 and 2.0 as operating system choices. o IBM is currently working with a large number of PC manufacturers for testing of initial versions of the repackaged products. The IBM Austin site began shipment last week of a test kit supplying the code to PC manufacturers.

IBM's Commitment to OS/2 o IBM has listened to its customers and responded with a strategy designed to reflect their requirements. This strategy is embodied in OS/2; o IBM responded to customer requirements for improved product function, size and performance in OS/2 by releasing OS/2 1.3 with substantially improved quality over previous releases; o As customers migrate to 386SX-based systems and higher, they need a robust 32-bit operating system to exploit the hardware capability; OS/2 2.0 will provide this capability; o IBM has modified its software development process -- instead of using large horizontal groups, OS/2 is being developed by small, focused vertical teams, allowing more flexibility and efficiency; o And IBM currently provides software vendors with a range of support programs, from a Developers Assistance Program to an OS/2 Migration Center, and is committed to continually enhance the quality and expand the scope of these programs.

ISV Acceptance of OS/2 o More than 2,500 shrink-wrapped applications are announced or available for OS/2 16-bit and more than 300 applications are announced or available for 16-bit PM; o Currently more than 1,200 ISVs in the U.S. are developing applications for OS/2; o And in addition to IBM's own tools, there are more than 100 development tools available for OS/2 today.

Customer Support of OS/2 o Today there are approximately 600,000 OS/2 copies installed worldwide and IBM believes that by the end of 1991 there will be more than one million OS/2 copies installed worldwide. o OS/2 customers include Fortune 500 companies as well as small, medium and large-sized businesses where both mission-critical and personal productivity shrink-wrapped applications and connectivity are of utmost importance; o Many OS/2 customers are moving from test, or pilot, OS/2 projects today to actual implementation of these projects throughout their businesses. As a result, OS/2 volumes should increase significantly over the next several years. (a) OS/2 and Presentation Manager are trademarks or registered trademarks of International Business Machines Corporation.

386SX is a trademark of Intel Corporation.

CONTACT: IBM Corp., White Plains, N.Y. Tracy A. O'Neill, 914/642-5412 10:09 ET

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