I.B.M. Consolidates OS/2 Development in Texas

Strategic Insights -

In a move aimed at strengthening its OS/2 operating system software, I.B.M. will relocate 1,100 software developers and other personnel from its Boca Raton, Florida, center to Austin, Texas. This shift is intended to consolidate OS/2 development in a single location, addressing concerns from analysts that the company's efforts were previously divided between Florida and Texas. The move comes as Microsoft's rival Windows 95 has gained popularity, with some predicting that I.B.M. will eventually back away from OS/2.

Key Takeaways:

  • I.B.M. will relocate 1,100 software developers and personnel from Boca Raton, Florida, to Austin, Texas, to consolidate OS/2 development.
  • Virtually all OS/2 competitors, including Microsoft, develop their products in one place, whereas I.B.M.'s efforts were previously divided.
  • I.B.M. was a joint effort with Microsoft on OS/2, but the partnership ended in the early 1990s, with I.B.M. taking sole ownership.
  • John W. Thompson, the I.B.M. executive in charge of OS/2, emphasizes a focus on speed of execution rather than cost savings.
  • I.B.M. will offer severance packages to employees who decline to relocate, while a small number of clerical and support personnel may be laid off.
  • The relocation is expected to be completed by April 1995.

Statistics:

  • 1,100 software developers and personnel will be relocated from Boca Raton, Florida, to Austin, Texas.
  • 2,000 employees currently work at the 600-acre Boca Raton center.
  • The center has been in operation since 1967 and has a peak employment of about 15,000 workers.
  • 1,000 workers from other I.B.M. divisions will remain at the Boca Raton center.
  • A version of OS/2 that runs on the PowerPC microprocessor will not be available until the end of the year at the earliest.

Sources:

  • "I.B.M. to Relocate OS/2 Software Developers." *Source: Original article text, no specific publication referenced.*