Episode 16 tells the story of OS/2 — an operating system that was meant to be the joint creation of IBM and Microsoft, but ultimately became a symbol of betrayal and IBM’s counterattack. OS/2 Warp defined stability, security, and multitasking on the PC throughout the 1990s, becoming a legend among professionals and enthusiasts.
1. The IBM–Microsoft alliance and the birth of OS/2 (1987)
In the mid‑1980s, IBM and Microsoft worked together on a successor to DOS. While Microsoft was quietly investing in Windows, IBM committed to OS/2 — a true 32‑bit system with multitasking and memory protection.
OS/2 1.0 (April 1987):
- Required Intel 80286
- Preemptive multitasking
- Full DOS compatibility
- Presentation Manager (PM) GUI
- Price: 995 USD — extremely expensive at the time

The original Presentation Manager running on OS/2 1.1, Fair use
2. The split — Microsoft walks away
OS/2 1.21 (1989) was a solid, professional system — but Microsoft abandoned the partnership and focused entirely on Windows 3.0. IBM was left with a technically superior OS, but without Microsoft’s ecosystem and developer support.
OS/2 2.0 (May 1992) — a masterpiece:
- Full 32-bit support for 386/486/Pentium
- Preemptive multitasking and virtual memory
- Workplace Shell — a revolutionary object‑oriented desktop
- Full compatibility with Windows 3.x apps
- HPFS — a modern high‑performance file system
Although OS/2 2.0 sold over 2 million copies, Windows 3.1 dominated the mass market.
3. OS/2 Warp 3 and 4 — the golden age (1994–1996)
Warp 3 (1994):
- Built‑in TCP/IP, Java support, voice navigation
- Famous for stability (“OS/2 never crashes”)
- Bonus Pack: Doom, networking tools, admin utilities
Warp 4 (1996):
- Updated 3D‑style GUI
- Java 1.1 integration
- USB support
- Workplace Shell 2.0 with multimedia features
- Server edition for enterprise networks

OS/2 Warp 4, Author: Martini
4. OS/2 for PowerPC — the dream that failed
IBM invested heavily in PowerPC (like Apple), but OS/2 for PowerPC (1995) was too expensive and had no real audience. It became IBM’s last major attempt at a desktop platform.
Unfinished or failed projects included:
- Project Lancaster — OS/2 for x86‑64
- Workplace OS — a multi‑platform microkernel successor
5. Comparison: OS/2 vs Windows vs others
| Feature | OS/2 Warp | Windows 95 | AmigaOS | NeXTSTEP |
|---|---|---|---|---|
| Stability | ⭐⭐⭐⭐⭐ | ⭐⭐⭐ | ⭐⭐⭐⭐ | ⭐⭐⭐⭐⭐ |
| Multitasking | Preemptive | Cooperative | Preemptive | Preemptive |
| DOS compatibility | Full | Full | None | None |
| Win16 compatibility | Full | Native | None | None |
| GUI | Workplace Shell | Explorer | Workbench | Dock |
| Price | High | Low | Medium | Very high |
6. Legacy and the professional niche
OS/2 maintained a strong foothold in:
- Banking and finance
- Aviation systems
- Retail systems (POS terminals, checkout systems)
- ATMs
- Embedded servers and controllers
IBM discontinued official support in 2006, but its successor eComStation (and later ArcaOS) is still used today.
OS/2 Warp remains proof that technology alone doesn’t win — ecosystem, licensing, and marketing decide the victor.

