Microsoft Rift With IBM Reportedly Could End Alliance
A software development alliance between International Business Machines and Microsoft Corp., two of the largest and most important players in the $60-billion personal computer industry, may be close to dissolving, a leading computer publication is reporting.
In its edition scheduled for release Monday, InfoWorld said the companies are seriously divided over the future development of OS/2, a new set of operating instructions for IBM personal computers and compatible “clone” models from other manufacturers. The weekly magazine said a meeting between the companies was planned this weekend and that an announcement detailing the results could come as early as next week.
A Microsoft spokeswoman late Friday denied any rift with IBM, saying the alliance is “stronger than ever.” IBM officials could not be reached for comment.
InfoWorld, citing unidentified sources, reported that because IBM and Microsoft are no longer equally committed to developing OS/2, they are exploring ways to part with the minimum disruption.
Nevertheless, the effect of a serious rift between IBM and Microsoft would be felt throughout the personal computer industry. Sales of IBM personal computers and compatible models, all of which rely on an operating system written by Microsoft, account for more than 65% of PC sales worldwide, analysts say.
Although current PC owners would not be affected immediately, analysts said new buyers would face increased confusion and possibly delays in development of new software applications for PCs and compatible models.
At issue are differing views of the future of personal computer usage and sales.
Insiders say Microsoft, the giant Redmond, Wash., software publisher that wrote the DOS operating system for the original IBM PC, is no longer interested in OS/2. That’s because sales of its competing software products--notably Windows 3.0, released to rave reviews in May--have taken off.
IBM, on the other hand, is said to be interested is developing a proprietary version of the new operating system to take back PC sales siphoned off by clone makers that bought DOS from Microsoft. Windows can be used with DOS to make PCs easier to operate.
“IBM wants to have a closed, proprietary system, just like they have for their other machines,” said Jim Ashbrook, senior vice president for marketing at AST Research, an Irvine-based clone maker. “They want to regain control of the market.”
Microsoft has been jointly developing the OS/2 operating system with IBM under an agreement signed five years ago. However, in the past 18 months, the companies have been at odds over how the project should proceed. Initial sales of the first versions of OS/2 have been far lower than originally anticipated, and Microsoft has apparently found a more-than-adequate replacement for OS/2 in its newly released version of Windows.
Critics have charged that the internal conflict with its other products led Microsoft to drag its feet on the project.
