I.B.M. Ships New Version Of OS/2 Operating Software

I.B.M. Ships New Version Of OS/2 Operating Software

By Lawrence M. Fisher
The New York Times

San Francisco -- November 10, 1993 -- I.B.M. said today that it was shipping a version of its OS/2 operating system software aimed at customers who already own a copy of the Windows program made by the Microsoft Corporation.

Unlike previous editions of OS/2, the new product, OS/2 for Windows, does not include Windows itself, and I.B.M. said it would not pay Microsoft a royalty.

The new product concedes the dominance of Windows, which has about 30 million users and is being shipped at a rate of 1.5 million units a month, but it also demonstrates I.B.M.'s continued commitment to OS/2. In recent trade publication reports, the International Business Machines Corporation had indicated that OS/2 sales had accelerated and that it might postpone the introduction of a new operating system known as Workplace.

Microsoft and Motorola Inc. also confirmed today that a version of the Microsoft Windows NT operating system was being developed for the PowerPC microprocessor, in cooperation with the newly formed IBM Power Personal Systems division. PowerPC is the new chip jointly developed by Apple Computer Inc., I.B.M. and Motorola. Windows NT is an advanced operating system shipped by Microsoft earlier this year.

Promotional Price

OS/2 for Windows, which will be available through Feb. 9 at a promotional price of $49, will have a suggested retail price of $149. This compares with $249 for the standard OS/2 package, which includes a version of Windows and for which I.B.M. pays a royalty to Microsoft. An OS/2 2.1 upgrade kit is also available, for current users of I.B.M.'s older OS/2 versions or Microsoft's MS-DOS, for $199.

I.B.M. and Microsoft co-developed the original OS/2 as a replacement for the aging MS-DOS operating system in the mid-1980's, but later had a falling out. Microsoft went on to develop Windows as an add-on to MS-DOS, which made that operating system easier to use. I.B.M. continued development of OS/2, aimed at providing more power and flexibility than MS-DOS, but it also relies on Windows. OS/2 competes head-on with Windows NT.

"OS/2 for Windows allows users to rise above the limitations of a DOS and Windows environment, unleashing a higher level of power and performance," Lee Reiswig, president of the IBM Personal Software division, said in a statement. "OS/2 for Windows is an affordable, risk-free solution that allows users to tap the computing potential of OS/2 2.1 and their PC."