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Microsoft Corp.

IBM's OS/2 Operating System Gains Advantage with Microsoft Settlement

Strategic Insights

— 1 min read

The recent consent decree announced by the United States Department of Justice requiring Microsoft to end its licensing fee system for computer makers has been a significant boost for IBM's OS/2 operating system. According to Leland R. (Lee) Reiswig Jr., president of IBM's Personal Software Products Company, the settlement has energized the company to focus on getting its software preloaded on systems from various vendors. The decision not to charge licensing fees on each machine sold has lifted the burden of retribution from Microsoft, allowing IBM to aggressively market its OS/2 operating system.

Key Takeaways:

  • The consent decree requires Microsoft to end its practice of charging licensing fees on each machine sold, whether or not it contains MS-DOS or Windows.
  • Competitors claim that this licensing system inhibited competition, and the decree is seen as a significant step towards promoting fair competition.
  • IBM's OS/2 operating system is expected to benefit from the settlement, with the company planning to make a significant effort to get its software preloaded on systems from various vendors.
  • Leland R. Reiswig Jr. believes the decree addresses the major issue for operating systems companies but leaves room for further action by the Justice Department if necessary.
  • IBM's partnership with Microsoft on OS/2 as the long-term operating system for PCs was abandoned by Microsoft, leaving IBM shocked and caught off guard.
  • IBM's chances of catching up in the market are improving due to the rapid shift to 32-bit technology, with the company claiming a six-month lead on Microsoft's Chicago operating system.

Statistics:

  • IBM's OS/2 operating system will benefit from the settlement, with the company planning to make a significant effort to get its software preloaded on systems from various vendors within the next six months.
  • Microsoft's Chicago operating system is expected to be a competitor to IBM's OS/2, with IBM claiming a six-month lead.

Sources:

  • "IBM's OS/2 Operating System Gains Advantage with Microsoft Settlement" (no source specified in the original text)
  • Leland R. Reiswig Jr. (born November 15, 1945; Modesto, Calif., Education: Bachelor's degree in business and industrial management, San Jose State University)

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