IBM’s OS/2 was released in 1987 and was designed to be a more advanced operating system than Windows. However, it lost to Windows in the early 1990s because Microsoft was able to market its operating system better. ..

OS/2 Was Intended to Replace DOS

OS/2 (Operating System/2) debuted in 1987 with the IBM PS/2 line. This line was designed to take IBM’s PC series to new heights with new standards, like VGA, the PS/2 mouse and keyboard interface, and the Micro Channel architecture (MCA) bus. It made sense to have a new operating system, as well, and OS/2 fit the bill.

(Ironically, the best-selling lower-end models of the PS/2 line didn’t have the cutting-edge hardware features and ran PC-DOS with Windows, instead.)

Development of OS/2 started in 1985 as a joint project between IBM and Microsoft, which developed the PC-DOS operating system that shipped with IBM machines. The partners intended to replace DOS with an advanced 32-bit protected mode operating system that would provide the software framework for advanced future applications.

For a time, Microsoft primarily developed OS/2, and even released its own private label version called, unsurprisingly, “Microsoft OS/2.” However, after the massive success of Windows 3.0 in 1990, the partnership between IBM and Microsoft ended. IBM developed future versions of OS/2 on its own, and the product line diverged significantly from Windows.

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Still, OS/2 remained notable during the early-to-mid ’90s for being a 32-bit protected mode operating system (starting with version 2.0) for IBM PC compatibles. This allowed preemptive multitasking of multiple OS/2, DOS, or Windows apps simultaneously in a rock-solid way.

It also did this at a time when Microsoft’s MS-DOS and Windows ecosystem was, generally, less stable and less full-featured. Those capabilities won OS/2 many fans, but it still never had the same market impact as Windows.

Notable Versions of OS/2

From 1987-96, IBM released the following major versions of OS/2 (some with notable revisions) and continued to update it with bug fixes until 2001:

OS/2 1. x (1987-90): Similar to MS-DOS, the first version (1. 0) was command-line only. But version 1. 1 (1988) included a graphical window interface, similar to Windows 3. 0, which came along later. OS/2 2. x (1991-94): The first 32-bit version developed without Microsoft (although legacy code was used). It was also the first version to include the Workspace Shell GUI. OS/2 Warp 3. x (1994-95): Warp was an attempt at a cool marketing angle for IBM. This version streamlined OS performance by reducing memory usage. It also included internet connectivity components for the first time. OS/2 Warp 4 (1996-01): This release further integrated internet support, updated the Workspace Shell appearance, and included support for technologies such as Java and OpenGL. The basic framework of Warp 4 still receives updates and software support from third-party vendors.

OS/2 vs. Windows: A Fierce Battle

So, why did Microsoft win? Opinions on this are varied and controversial. According to IBM veterans (like Dave Whittle in this detailed answer), Windows undermined OS/2 through a combination of intense marketing, dirty tricks, and relentless support of lower-cost, low-end machines.

To be fair, though, IBM’s marketing blunders probably didn’t help.

A deciding factor in the battle came with the near-simultaneous releases of OS/2 2.0 ($195) and Windows 3.1 ($150) in 1992. Consumers perceived OS/2 as a product specifically for IBM machines (which were generally more expensive than clones). Windows 3.1, however, could run on cheaper, mass-market machines.

Also, OS/2 had a chicken-and-egg problem. Its best selling point was its compatibility with MS-DOS and Windows applications. However, this meant few developers took the time to write OS/2-native apps. So, why run OS/2 at all?

Microsoft also developed best-selling productivity apps, like Word and Excel, that (suspiciously) seemed to run better on Windows than OS/2.

Still, IBM didn’t give up. In ’94, when OS/2 Warp was released, the public battle between the two firms became quite heated. Veterans of that era might recall how bitter OS/2 advocates were when Microsoft’s supposedly “inferior” products won the day.

This opinion is still common among those who used OS/2.

OS/2 Lives on!

The success of Windows didn’t immediately spell the end for OS/2. IBM continued to support it until 2001. It was heavily used in ATMs and other embedded applications due to its stability.

Even today, OS/2 is used widely enough that it lives on via OS/2-based operating systems sold and supported by vendors like eComStation and Arca Noae. The New York Metropolitan Transportation Authority (MTA) still uses OS/2 to power elements of New York City’s famous subway system. A project called Warpzilla also maintains ports of semi-modern web browsers for OS/2.

If you consider OS/2’s stability and longevity, IBM must have done something right, even if it was overshadowed by Microsoft’s marketing muscle. Rather than considering it just an “also-ran,” perhaps it’s time OS/2 got a little respect.