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Microsoft's Windows NT and the Future of Operating Systems

Strategic Insights

— 2 min read

Bill Gates' keynote speech at Comdex has again sparked much interest in Microsoft's new operating system, Windows NT (New Technology). Despite being initially oversold, Windows NT has started to make an impact on the workstation market and local area network (LAN) servers, and Microsoft is working to improve it with a new version, Daytona. However, Windows NT is unlikely to be a success on desktop PCs due to its high memory requirements. Microsoft is addressing this issue with the new operating system, Chicago, designed for use on PCs with only four or eight megabytes of RAM. Chicago could be the most important launch in Microsoft's history, with at least 10 million of Windows' 65 million users likely to be interested in upgrading.

Key Takeaways:

  • Windows NT has started to make an impact on the workstation market and local area network (LAN) servers, but is unlikely to be a success on desktop PCs due to its high memory requirements.
  • Microsoft is working to improve Windows NT with a new version, Daytona, which will require less memory and have improved performance.
  • Chicago, the new operating system designed for PCs with four or eight megabytes of RAM, could be the most important launch in Microsoft's history and address the heap space problem in Windows.
  • Microsoft has announced the ACE consortium, a partnership to support two operating systems, Unix and Microsoft's OS/2 version 3.0, which is later to become Windows New Technology (NT).
  • Windows NT has been successful on servers, with Microsoft selling NT Advanced Server with a licence to connect an unlimited number of users, and the software savings could be enough to buy an extra megabyte of RAM for each user.
  • Microsoft has also been working on two important new programs, code-named Hermes and Touchdown, to improve server management and add universal electronic mail and information services to its operating system.

Sources:

  • [IBM and Microsoft announce OS/2 operating system at Comdex, April 1987]
  • [Microsoft launches Windows 3.0, May 1990]
  • [Microsoft's annual revenues hit Dollars 1.18 billion, July 1990]
  • [ACE consortium formed to back two operating systems, Unix and Microsoft's OS/2 version 3.0, April 1991]
  • [Microsoft launches Windows 3.1, April 1992]
  • [Windows 4, code-named Chicago, demonstrates at Comdex, May 1994]

Statistics:

  • Windows NT has been successful on servers, with a remarkable market share.
  • Microsoft has sold NT Advanced Server with a licence to connect an unlimited number of users.
  • Software savings on Windows NT could be enough to buy an extra megabyte of RAM for each user.
  • IBM has shipped 5 million copies of OS/2 2.0.
  • Microsoft has 25 million licensed users of Windows 3.
  • Microsoft's annual revenues reach Dollars 3.75 billion, including Dollars 1.04 billion in the last quarter, July 1993.
  • Windows NT ships in August 1993.
  • IBM has shipped 5 million copies of OS/2.
  • Microsoft has sold 3 million copies of Windows 3.1, November 1992.

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