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OS/2 Warp Connect vs Windows 95

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           ====================================
           !  OS/2 WARP CONNECT vs WINDOWS 95  !
           ====================================

                           FOR

              OPERATING SYSTEM EVALUATION BY
  IBM MARKETING PERSONNEL, BUSINESS PARTNERS AND CUSTOMERS


                        PREPARED BY
                      IBM CORPORATION
                WORLDWIDE MARKET STRATEGIES
                    FAX (407) 982-8888

                    SEPTEMBER 28, 1995




                  OS/2 Warp Connect vs. Windows 95
               ======================================

Introduction
++++++++++++

OS/2 Warp has generated renewed excitement and heightened
momentum for OS/2 in all areas of the marketplace since its
release .   This has led to over 60 independent software
vendors (ISV) announcing more than 100 new applications for
OS/2 Warp in 1995 alone.  In addition to the IBM PC Company,
OS/2 Warp is a preload option on PCs from over 200 OEMs
worldwide.

Now almost a year and nearly 3 million OS/2 Warp sales later,
the  release of Windows 95 in August 1995 will lead to some
degree of evaluation of computer hardware and software needs
in  homes and businesses, both large and small.  Whether you
are running through a mental checklist or performing a full
pilot evaluation, here are some basic points to consider as
you decide the best way to meet your needs today and in the
future.


Executive Summary
+++++++++++++++++

Microsoft's $200 million+  marketing campaign surrounding the
August 24, 1995 availability of Windows 95 created a media
blitz that reached a fever pitch and blurred the realistic
expectations for the product.  The good news is that Windows
95 is now a product and the reality can be separated from the
hype.

Many media commentators, reviewers, and writers as diverse as
Rush Limbaugh,1  Howard Stern 2 and Garry Trudeau in the
Doonesbury3 comic strip observed that Windows 95 is offering
features and functions that OS/2 and Apple Mac users have
enjoyed for years.   James Fallows, in his National Public
Radio (NPR) commentary,  pointed out that
Windows 95 is " . . . an achievement of commerce and
promotion rather than technology."  What makes OS/2 Warp
important to businesses, where stability and productivity are
crucial, was summed up by Eric Grevstad in the September 1995
Computer Shopper, "A time-tested, bargain-priced,
elegantly-interfaced, Internet-savvy, rock-solid, 32-bit
operating system."

OS/2 Warp Connect is designed for today's networked business
environment.   Its true multitasking, multithreading
capabilities handle mission-critical tasks more quickly and
efficiently.  OS/2's Crash ProtectionTM  keeps problems with
individual applications from crashing your entire system.
Combining OS/2 Warp's architectural and networking strengths
with the investment protection afforded by compatibility with
existing DOS and Windows 3.x applications creates an
environment with advantages that Windows 95 does not provide.

Only OS/2 Warp provides personal computer users with:
  * A full 32-bit operating system with true multitasking and
    multithreading
  * Preemptive multitasking with 16-bit Windows 3.x
    applications as well as native 32-bit applications
  * Memory and data protection
  * Crash Protection
  * Internet access graphical tools
  * Consistent user interface across entire family of
    scaleable products
  * Lotus Notes synergy
  * BonusPak of full-function productivity applications.

Companies that migrate to OS/2 Warp Connect today may recover
their migration cost by the time Microsoft makes a second,
more stable release of Windows 95 available with native
32-bit applications (currently named Nashville and planned
for next year).

OS/2 Warp Advantages
--------------------

OS/2 was designed as a 32-bit multitasking, multithreaded
operating system from the ground up.  OS/2 Warp is the third
major release of 32-bit OS/2 and the seventh release with
preemptive multitasking and multithreading capabilities.  It
is a stable, industrial-strength operating system that has
proven its ability to handle mission-critical applications.

OS/2 has been introducing and evolving leading edge
technology over its 8-year history.  The  results of that
technology have been to exploit the capabilities of today's
hardware fully, while  maximizing usability and protecting
investment in current technology.  OS/2 has won over 70
awards since April 1992.  The recognition OS/2 has received
for its technical excellence along with its widespread usage
in major corporations worldwide has raised the bar, creating
a new level of expectation in operating system function.
Windows 95 is now beginning to introduce many of the features
and functions that OS/2 users have been accustomed to for
some time now.  Many of  OS/2 Warp's functions, listed below,
are now claimed by Microsoft for Windows 95 but are present
to varying degrees, some with additional purchases required.

* Full 32-bit multitasking, multithreaded operating system --
  but Windows 95 has semi-preemptive multitasking
* Crash Protection  --  but Windows 95 has compromised crash
  protection in favor of compatibility
* Internet access with graphical browsers -- but no graphical
  tools, for example Web Browser or Gopher, are included with
  Windows 95
* Graphical utility for accessing a commercial on-line
  provider (CompuServe) -- but Windows 95 only offers the
  Microsoft Network connecting software
* Support for multiple clients and multiple network
  transports out of the box
* Object-oriented technology through IBM's System Object
  Model (SOM) -- but Windows 95 utilizes proprietary
  Object-Linking and Embedding (OLE), which is object-based
  rather than object-oriented.
* Ease-of-use features which include:
  - A full object-oriented desktop -- but Windows 95 is a
    partial object implementation.
  - Folder work areas -- but Windows 95 folders lack OS/2
    Warp's unique work-area capabilities of closing the
    folder and having all objects within the folder close.
    Then when the folder is reopened, all objects reopen just
    as they were before the folder was closed.
  - Shadow duplicate icons -- but Windows 95 lacks the
    ability to dynamically track the linkage and can lose the
    target.
  - Drag-and-drop -- but Windows 95 has inconsistent
    drag-and-drop.
  - Toolbar completely customizable for one-click application
    access -- but the  Windows 95 task bar has minimal
    customization capability.
  - Long file names -- but Windows 95 is only the most recent
    operating system to break the 8.3-character file name
    barrier.
  - Right mouse-button support  for context menu, including
    setting properties -- but Windows 95 is supporting a
    feature OS/2 Warp users have benefited from for years.

Ease of Use
+++++++++++

User Interface
--------------

OS/2 Warp

Staying at the forefront of the technology curve, OS/2 began
exploiting object-oriented technology on the OS/2 2.0 desktop
that was introduced in April 1992.   The  OS/2 desktop has
evolved into the user-friendly desktop currently available in
OS/2 Warp.  The beauty of this clean,  efficient desktop is
much more than skin deep.  Each icon, whether on the desktop,
toolbar, or in a folder, is a graphic representation of the
actual object.  This provides consistent drag-and-drop usage
across all areas of the desktop.   Any action on the icon
applies to the object.  Therefore when an icon is dragged to
the shredder it shreds, to the printer it prints, and to the
fax it faxes.  Shadow icons can easily be created to
represent an original object and its contents.  Because this
is a true object-oriented implementation, any action done to
the original  (for example, a name change) occurs in the
shadow as well.  Object locations are dynamically maintained
so that when the original files are moved within or between
directories, or local/network disk drives the shadows are not
lost.

Windows 95

Microsoft has promised a full object-oriented implementation
in Cairo, a future NT release, but the current partial
object-based implementation of Windows 95 causes inconsistent
results with drag-and-drop operations.  Some areas, among
them the My Computer and Control Panel folders, are
considered special areas, off limits for drag-and-drop
activity.  This inconsistency is very confusing for a new
user.  The lack of a drag-and-drop deletion capability adds
to the confusion, since drag-and-drop on the Recycle Bin
requires an additional step that may not be apparent to
complete the deletion.  Pressing the Start button to get to
the system shutdown is not very intuitive either.

The partial object-oriented implementation is also evident in
the Windows 95 feature for creating shortcuts, which are
alternative names or nicknames that refer to an object and
can be placed at convenient places on the desktop.  Since the
shortcut and its related files are linked by static pathnames
and .ini file entries, moving the target file within the
directory structure can break the connection, causing the
shortcut to be lost.   Windows 95 does search, often
successfully, to find the wayward file, but the search can be
lengthy and can result in targeting the wrong file.

Referring to the inconsistency of the drag-and-drop, the
InfoWorld Test Center Product Review, August 1995, warns,
"Another inconsistency -- which is serious enough to cause
you to accidentally dump a document if you're not careful --
has to do with Win95's capability to help you create
shortcuts.  You create a shortcut to an executable ŞfileÝ by
dragging and dropping it onto the desktop with the left mouse
button.  If you use the same procedure on a document, you get
a different result -- the document gets moved rather than a
shortcut created.  If you don't realize you are not working
with a shortcut, you can easily delete the document file when
moving it to the Recycle Bin."

When an entire window is moved across the desktop, the
contents of that window are temporarily blanked out. The
remedy for that is in Microsoft Plus], a $49.95 add-on to
Windows 95 that raises the minimum system requirement to a
486 processor, 256-color graphics, and 25 to 50MB of
additional hard disk space.

Long File Names
---------------

OS/2 Warp

Breaking free of the cryptic 8.3-character file name
constraints that have frustrated a generation of DOS and
Windows users occurred 8 years ago for OS/2 users.
User-assigned names for folders are examples of where long
file names can be conveniently used.

Windows 95

Windows 95 has garnered significant press over the support of
long file names. While this function is nothing new to users
of other personal computer operating systems, it is another
example of where Windows 95 users can encounter problems
unless all of the applications on their system and any system
with which they plan to exchange data files are upgraded to
Windows 95 versions.  Here's a frightening example.  You
create an expense report, titled 'Expenses for Aug',  with a
new Windows 95 spreadsheet program in your office.  Next
month you create 'Expenses for Sept' and decide to take it
home and complete it over the weekend.  Windows 95 has
assigned 'Expens˝1' and 'Expens˝2' as short aliases for your
two files, but when you copy the September report onto a new
floppy diskette to take it home, it is titled 'Expens˝1' on
the diskette.  Monday morning you return to the office and
copy the September report that you completed on your Windows
3.x spreadsheet at home back onto your office system.  Since
the August report had previously been assigned the 'Expens˝1'
alias, the September report will overwrite it.  The August
report is gone, replaced by the September file.  This type of
confusion can only be avoided by using short (8.3) file names
solely,  and therefore any perceived advantage is lost.


Architecture
++++++++++++

Crash Protection and Multitasking
---------------------------------

We are constantly multitasking in every aspect of our lives,
with much of the activity so natural that we don't even think
about it.  From the simplest walk-and-chew-gum-joke to the
evenings spent cooking dinner while the laundry runs and the
kids are reporting on their day, this natural flow of
activity maximizes productivity in our lives.

Our work lives should be no less efficient.  Being able to
open multiple Web Browsers allows the Internet user to
maximize the on-line time for which he is billed.
Downloading a file while reading e-mail has the same cost
savings.  Continuing to edit a file while a previous version
is faxed to a co-worker increases productivity.

OS/2 Warp

Doing these tasks concurrently is the true preemptive
multitasking that OS/2 was designed from the ground up to
provide.  The strength of OS/2 Warp's multitasking, coupled
with its superb Crash Protection, has led to its widespread
adoption in major worldwide corporations where productivity
and stability are paramount.   Even though earlier versions
of OS/2 did contain 16-bit elements, IBM was able to
trademark OS/2 Crash Protection because no 16-bit parts were
ever shared with Windows applications.

Windows 95

An article titled "A Grab Bag of Gotchas and Goodies for
Programming in Windows 95"  in the May 1995 issue of the
Microsoft System Journal stated: "Windows 95 is based on
Windows for Workgroups 3.11 code.  Yes, the code has been
significantly modified to provide process and thread
management . . . but there are still some occasional 16-bit
issues to deal with."   The ramifications of newer 32-bit
code having to call 16-bit operating system parts compromise
both the stability of the system and the multitasking
capabilities.

  * Two important portions of legacy code are GDI, the
    Graphics Device Interface, and  USER.EXE,  which controls
    the user interface.  Being 16-bit code, it is
    non-reentrant and can only be accessed by one application
    at a time.  That one application makes a call and locks
    that portion of code until it is finished with it. The
    danger lies in the potential for USER.EXE to be grabbed
    and locked by a crashed application.  When that happens
    the Windows 95 user interface remains inaccessible and
    needs a  <Ctrl><Alt><Del> action to free it, which also
    terminates any real-time applications running in the
    background, such as a file transfer or FAX.
  *  All Windows 3.x applications are executed in one shared
    address space. There is no option as in OS/2 Warp to
    execute Windows 3.x applications in separate protected
    address spaces where the inter-application protection
    isolates each Windows 3.x application from the
    idiosyncrasies of the others.
  * The introduction of even one 16-bit Windows 3.x
    application causes the entire environment to revert to a
    cooperative multitasking model where the application,
    rather than the operating system, is in control of
    critical system resources such as the CPU.
  * Only 32-bit applications are memory protected. Unless
    additional money is spent to acquire all new Windows 95
    32-bit applications, General Protection Faults (GPFs) are
    not history.

Multithreading adds efficiency by allowing concurrent
operation of more than one path of execution within a task.
Addressing a developers conference  recently, Jeff Richter, a
Microsoft software engineer, discussed various aspects of
Windows 95 architecture and cautioned the developers,  "In
Windows 95, the threads are a nightmare."   He warned the
developers that threads could be used for background tasks,
but could never be used to simultaneously print and edit a
document because Windows 95 would not know which version of
the file to print.   He also alerted the developers that
high-priority threads, which should be reserved for system
functions, could inadvertently be created by application
developers, potentially crashing the system.

Connecting
++++++++++

Connectivity was once thought of as strictly a corporate
need, but that paradigm has changed.  Modems have become
standard equipment in consumer systems, simplifying
connecting to commercial on-line services and the Internet.
The teamwork approach of workgroup or collaborative computing
is growing as the productivity gains are realized.  The
client/server model of computing is becoming more prevalent
in corporations.  The importance of connected computers in
our lives will keep growing exponentially.  Our need to be
connected, everywhere from the office to the plane to the
lounge chair in the backyard, is becoming a way of life.

Internet Access
---------------

OS/2 Warp

The Internet Access Kit provided in the OS/2 Warp BonusPak
includes a Web Browser, News Reader, Gopher, Telnet and FTP
client, all with the same graphical look and feel as OS/2
Warp.  With OS/2 Warp's one-button registration,  it is
unnecessary for users to understand or even see the
underlying SLIP protocol.   The October 10, 1995 PC Magazine
feature article, "The Internet: Make It Work For You" gives a
comparison of Internet access tools and states,  " . . . only
OS/2 Warp Connect can boast a fully developed TCP/IP anatomy.
Its multifaceted stack, voluminous suite of tools, and
integrated installation process provide Internet options that
will appease both the on-line novice and the demanding power
user."

Windows 95

The OS/2 Warp Internet Access Kit, available since October
1994, has received much acclaim and has been a compelling
sales factor. Shortly after its release,  Microsoft announced
changes in their planned Internet access tools for Windows
95.  Windows 95's main focus is the Microsoft Network  (MSN)
where Microsoft controls the content and collects the
revenue.  So that Internet access can be claimed,  Windows 95
provides the Internet Protocol stack along with Telnet and
FTP as command-line entries only.  To use the Internet, the
user must first subscribe to the MSN or another commercial
on-line service where a Web Browser and a Gopher can be
downloaded. The Microsoft Plus] add-on to Windows 95 also
provides a Web Browser and Gopher along with the Internet
mail client.

Peer Networks
-------------

OS/2 Warp

Cost containment is a major factor in businesses today.  The
need to minimize the expenditures for expensive peripherals
(for example, laser printers) coupled with the need for
multiple employees to access the same files led to the growth
of peer-to-peer networking.  By not requiring a dedicated
server, peer networking achieves savings but should not
compromise security.  Not everyone attached to the peer
network should be able to read, much less write, to certain
files such as the payroll record.  OS/2 Warp Connect's peer
networking capabilities provide user-level access rights. For
simplicity, initial access rights of read, read/write, and
none are presented.  For completeness, the options for read,
read/write, execute, create, delete, attributes, permissions
and none are presented (when you click on the Customize
button) and can be assigned for individual users or groups of
users.

An OS/2 Warp peer network can connect PCs seamlessly and
share resources among co-workers using OS/2 Warp Connect,
Windows for Workgroups, Windows 95, Windows NT and LANTastic.

OS/2 Warp Connect's ability to have a peer connection and
attach to a server simultaneously over the same network card
is a breakthrough for companies who will no longer have to
choose between peer and server connections that each require
unique connectivity mechanisms.

Windows 95

By contrast, Windows 95 uses the old share-level security
carried over from Windows for Workgroups.  In this scheme a
password is assigned to the sharable resource.  Once a user
logs on to the peer network, if he knows the password
associated with the resource, he can control the resource.
Windows 95 share-level security can only be implemented in a
network that consists entirely of Windows 95 PCs or in a
network that includes other Microsoft networks.  The only way
to provide additional levels of access rights is to use the
Windows 95 peer server in conjunction with an NT Server or
Novell NetWare server with the peer services linked directly
to the domain-based user accounts.

Client / Server
---------------

IBM's "Networking the World" vision means that whenever
anyone connects electronically to anyone else, anywhere, it
is IBM's networking software that enables it, manages it and
makes it safe.  OS/2 Warp Connect is the cornerstone of IBM's
software strategy.

Lotus Notes
-----------

The Information Technology industry is  becoming increasingly
network centric.  Personal computer users have moved from a
standalone personal productivity environment to a LAN
network-based environment.  Momentum is building toward a
collaborative, shared work environment.  This is the
groupware environment. Groupware provides an integration of
the total work environment that encompasses all aspects of
personal productivity, collaborations,  and line-of-business
applications.  All of this is simplified by having the same
solution at work, on the road, and at home.

Lotus Notes is the market leader in integrated messaging and
workgroup computing.  Notes along with cc:Mail,  have over 10
million users in 6 thousand companies.  Currently
10 thousand business partners are writing applications for
Lotus Notes across a broad range of platforms.  Lotus Notes
Express is already integrated into OS/2 Warp Connect
providing an easy entry into the Lotus Notes environment.
The synergy between OS/2 Warp and Lotus Notes will contribute
to increased productivity, which is a direct contributor to
the bottom line in any business.

Value
+++++

Productivity and Investment Protection
--------------------------------------

OS/2 Warp

The BonusPak of applications included with OS/2 Warp allows a
user to be productive immediately out of the box.  The need
to purchase additional applications prior to doing anything
meaningful is eliminated.  The object-oriented technology
used in the BonusPak applications allows them to integrate
fully into the OS/2 Warp desktop.  This further extends the
drag-and-drop functions seamlessly between the operating
system and the productivity applications.  An example of the
ease of use achieved is when a  document object is dragged to
the printer or fax object without your having to open the
word processor that created the document.

Replacing and upgrading applications can be a very expensive under-
taking for both consumers and business users. OS/2 Warp's downward
compatibility is designed to protect your current investment
in DOS and Windows applications.  With OS/2 Warp, Windows 3.x
applications can run in separate protected memory address
spaces, providing robust inter-application protection.  The
OS/2 Warp advantages of Crash Protection in a multitasked,
multithreaded environment make OS/2 Warp a more stable
environment for your current Windows 3.x applications.

Windows 95

To benefit from the advancements of Windows 95, all of your
applications must be upgraded to Windows 95 versions.   When
recently retired Mike Maples was senior vice president of
applications at Microsoft, he gave the industry a glimpse of
the magnitude of Microsoft's unique position as both supplier
and competitor when he reported, "My job is to get a fair
share of the software applications market, and that is 100%."
Since 61% of Microsoft's revenue in their last fiscal year
was from the sale of applications, how much interest do you
believe they have in protecting your current investment in
those applications?  Every major upgrade in the Windows
environment has required corresponding upgrades in
applications -- Windows 3.0 to Windows 3.1, Windows 3.1 to
Windows NT, and now Windows 3.1 to Windows 95.  The future
release known as Cairo has a stated goal of being
object-oriented, which would require another round of
application upgrades.

The IBM paradigm is downward compatibility combined with
bundling OS/2 exploitative applications at no extra charge
vs. the Microsoft paradigm of planned obsolescence.

The minimal instruction manual that ships with Windows 95
suggests that users acquire the Windows 95 Resource Kit, a
CDROM with more comprehensive documentation.  This is an
additional $49.95 cost for everyone who purchased a preloaded
system or the diskette version of the shrink-wrapped product.


Compatibility
+++++++++++++

Software Compatibility
----------------------

The August 8, 1995 PC Week reported that "as many as one
third of the 2500 DOS and Windows applications that Microsoft
Corporation tested for compatibility with Windows 95
displayed some problem which either reduced functionality,
required workarounds or prevented it from running."
Microsoft officials stated that 200 applications, among the
2500,  do not  run under Windows 95 but these have not been
broken out into a separate list.
This list is available on Microsoft's home page at:
        http://www.microsoft.com/windows/thirdparty.htm

Problems were encountered in most existing DOS and Windows
utilities, including virus protectors, backups that don't
support long file names, and those that access the disk
directly.  Microsoft directs users back to the manufacturers.
Retrofitting existing versions of their software into the
Windows 95 environment will not generate the revenue that
many of these companies are counting on receiving from the
Windows 95 versions they are releasing.

Many Windows 3.x screen savers are compatible with Windows 95
but anyone considering using a Windows 3.1 screen saver on
their Windows 95 system should be warned that the password
protection is lost.  Pressing <Ctrl><Alt><Del> brings up the
close program dialog box which allows the screen saver task
to end and the system to be accessible.

Hardware Compatibility
----------------------

Windows 95 warns users of DOS device drivers that there will
be performance penalties unless new 32-bit device drivers are
obtained.  Peripheral manufacturers are among those expecting
a financial boon from the sale of new hardware generated by
Windows 95 hardware requirements.  As hardware peripheral
manufacturers struggle to keep up with the latest technology,
how many will be willing to go back and write new drivers for
old hardware?

Application Development
+++++++++++++++++++++++

Today,  hardware costs are declining as the cost of software
development and testing continues to rise.  The
ever-escalating cost of software development can only be
contained if the major dependencies of the software
developers are provided.  These dependencies are

  * A predictable set of APIs
  * Support for industry standards
  * Reliable service and support

Application Programming Interface (API)
---------------------------------------

OS/2 Warp

IBM understands the dynamics of business economics today. We
understand that businesses must leverage their investment,
frequently many person years, in mission-critical
applications and cannot cost-justify re-engineering.  The
single 32-bit OS/2 API set across the entire OS/2 Warp family
simplifies development of applications that are scaleable
from the laptop to the  mission-critical corporate LAN
server.  All OS/2 and LAN Server releases have been upwardly
compatible. In fact IBM's PCLP 1.0, which shipped in 1985,
can run on LAN Server 4.0 today, 10 years later.  This
consistency is like a life insurance policy for your
mission-critical applications.

As part of an ongoing campaign to reduce software developers'
costs and give them an opportunity to capitalize on the
rapidly growing OS/2 market, the Developers Application
Extensions are being added to the tools available to
application developers.   The Developer Application
Extensions enable developers to create a common code base for
OS/2 Warp, Windows NT, and Windows 95 by including over 700
new APIs and 300 messages that are consistent with Windows
APIs.  These extensions allow application developers to write
portions of their code to be common among the operating
systems, then to add the portions that exploit OS/2 Warp's
API set and advanced functions.   Windows applications that
use the APIs defined in the Developer Application Extensions
can be recompiled to produce a functionally equivalent OS/2
Warp application.  A major Independent Software Vendor (ISV)
has estimated an 80% reduction in the porting cost of Windows
applications to OS/2 can be achieved.


Windows 95

The Windows API set has continued to change with each Windows
release -- Windows, Windows for Workgroups, NT, and now
Windows 95 -- supporting a different combination of 16- and
32-bit APIs.

With Windows 95, Microsoft introduced their fourth set of
Windows APIs.
  1)  Win16   -  The original 16-bit Windows 3.x APIs.
  2)  Win32   -  The 32-bit API set introduced with Windows NT.
  3)  Win32s  -  The expansion of Win16,  the lowest common
      denominator for applications, to run on both NT and
      Windows for Workgroups.
  4)  Win32c  - Introduced with Windows 95. This is an
      irregular subset of Win32.

For an application to be logoed as "Windows 95 Ready,"  it must also
run on Windows NT.  This sounds innocuous enough until you look at
the trade-offs of function that is in each one.  Functions unique to
each product include:

      Windows NT                    Windows 95
      ----------                    ----------

      Security                      New User Interface
      Unicode                       TAPI, MAPI
      Event Logging                 Plug and Play
      NTFS                          VxD
      OpenGL                        Independent Color Matching
                                    Microsoft FAX, Unimodem
                                    Microsoft Network Connection

Since each API set has unique features, an application that
must run on both operating systems must be written to the
lowest common denominator,  which is a compromise optimizing
neither environment.

Microsoft has a history of churn in their API definitions as
evident in the following examples:

  * Win16 / Win32S / Win32 /Win32c for operating systems.
  * VBX to OCX for application development.
  * OLE 1.0 to OLE 2.0, which caused a virtual rewrite of OLE
    1.0 applications.
  * ODBC 1 to ODBC 2  to OLE-DB for database access APIs. The
    future migration to OLE-DB will be at least one more
    major rewrite.

Can any business afford the development cost created by
chasing a moving API set?

Industry Standards
++++++++++++++++++

IBM is committed to open industry standards as a founding and
active member of various industry alliances. Widely accepted
industry standards are integrated into OS/2 Warp.
  * Common Object Broker Architecture (CORBA), on which IBM's
    System Object Model (SOM) is based, is a consortium of
    over 500 of the industry's leading developers.  This
    provides the rich object-oriented foundation for OS/2
    Warp products.
  * Desktop Management Taskforce (DMTF) has defined a Desktop
    Management Interface (DMI) for consistent asset
    management across hardware and software platforms.
  * OpenDoc, a cross-platform compound-document architecture.
  * Lotus Notes is a de facto industry standard for which
    over 12 thousand developers are writing applications.
    Notes is cross platform, not a Windows-only solution.

In today's heterogeneous computer world,  the acceptance of
open industry standards is the best insurance against being
locked into an implementation or architecture owned and
controlled by one vendor.


Support
+++++++

With OS/2 Warp comes IBM's world-class, award-winning,
worldwide support through a single point of contact.
Contrast this with Microsoft's complex, multi-tiered program
of (900) numbers, (800) numbers, and associated fees.

Microsoft support policy for networking products, including
the MSN, fax, and e-mail components of Windows 95, was
changed July 1, 1995, eliminating the 30-day free support
period.  Priority desktop support for personal operating
systems is $1.95 per minute. The per-incident cap was raised
from $25 to $35.   Microsoft expects Windows 95 to generate
record numbers of calls to the support centers.

OS/2 Warp Corrective Service Diskettes (CSDs) are made
available for electronic downloading, or the diskettes may be
ordered for the cost of manufacturing, shipping, and
handling.

The September 1995 issue of Windows Magazine relates that
Windows 95 tune-up packs may be sold either quarterly or on
an annual subscription basis.  Many users resent paying
Microsoft for bug fixes, particularly with Windows 95 being
version 1.0 of a new operating system.  In larger
organizations the additional cost of purchasing these
quarterly updates will be compounded by the administrative
challenges involved with distribution, control, and end-user
education.

Windows 95 Past, Present, and Future
++++++++++++++++++++++++++++++++++++

The Road to Chicago  (The Past])
--------------------------------

After Windows NT was released in August 1992, Microsoft told
customers who found the hardware requirements of NT
unpalatable that the next year would bring Windows 4.0,
described as providing preemptive multitasking,
multithreading, crash protection,  and all able to perform as
fast as Windows 3.x in a system with only 4MB RAM.  The only
action 1993 saw was the code name "Chicago" publicly replace
Windows 4.0 references.  Then 1994 came and went with only a
very limited beta test program made available late in the
year. This was followed by Bill Gates announcing that the
product, initially promised for 1993 then 1994,  would be 5
months late, pushing availability out to April 1994. The name
was then officially announced as Windows 95.  A larger public
beta in the first half of 1995 uncovered sufficient problems
to delay the release once more,  from early 1995 into August
1995.  The scope of problems encountered in the preview
program led to function shifting out of the base product in
order to maintain the date.  Microsoft Plus] became one of
the catchers for functions falling out of the main product,
including MPEG and the Internet mail driver.

Microsoft Claims (The Present])
-------------------------------

Attempting to position Windows 95 head-to-head with OS/2
Warp, Microsoft has claimed that Windows 95 is a completely
new 32-bit operating system, free of the constraints of DOS
and Windows 3.x, along with many other claims and promises
made over the course of the 3-year development cycle
regarding what to expect in the final product.  Now that all
of the smoke has blown away, and the vaporware claims with
it, the assertions can be mapped against the actual final
product.  There are significant differences, and the hype
doesn't match the reality.  The most dramatic of these claims
are the ones which will impact the day-to-day operations of
users, who need to fully understand the actual product and
not base their expectations on media coverage.  Perhaps Brad
Silverberg, Microsoft senior vice president of Personal
Systems, summed it up best in May 1995 when he said,  "It is
clear that the hype has gotten out of hand . . .We take our
share of responsibility for creating unreasonable
expectations."

Architecturally, Windows 95 was promised to be a completely
new, full 32-bit, totally integrated operating system.  Now
we know:
  * Critical pieces are carried over (not new) from Windows
    for Workgroups and DOS, creating a 16/32-bit hybrid
    operating system.
  * As explained in the "Architecture" section of this paper,
    fundamental portions of Windows 95 are legacy 16-bit
    code, including the Windows manager.
  * The absence of a 32-bit graphics subsystem is significant
    evidence of Microsoft's inability to achieve 32-bit
    technology due to compatibility issues. We recognize the
    difficulty of this challenge as it was not until OS/2's
    second major 32-bit release, OS/2 2.1,  that we
    achieved integration of a full 32-bit graphics subsystem
    with superior compatibility. Windows developers
    who were expecting the memory management relief from a
    32-bit graphics engine were surprised when they were
    informed at the December 1994 Microsoft Developers
    Conference that they would still have to deal with
    graphics in 64KB chunks in Windows 95 rather than the
    flat 32-bit memory model of OS/2 and NT.
  * While Windows 95 has added many features beyond Windows
    3.x, in  Unauthorized Windows 95,  page 2,  Andrew
    Schulman points out, "But there isn't much genuine
    integration at a technical level."

Windows 95 was touted to provide preemptive multitasking in a
crash-protected environment.
  * Windows 95 cannot preemptively multitask 16-bit Windows
    applications.
  * The presence of a single 16-bit Windows application
    causes Windows 95 to revert to cooperative multitasking.
    Windows 95 sales literature warns, "To get the full
    benefits of preemptive multitasking requires exclusive
    use of 32-bit Windows-based programs such as those
    bearing the Designed for Windows 95 logo."
  * 16-bit Windows 3.x applications all run in a single
    address space, exposing the stability of the entire
    system.
  * Key legacy, 16-bit portions of the Windows 95 operating
    system can only be accessed serially, creating a
    semi-preemptive multitasking environment.
  * Since the Windows 95 operating system code is not
    protected, errant memory operations in a Windows 95
    32-bit application can overwrite critical areas, exposing
    the system to the possibility of a crash.

As a follow-on to Windows 3.11, Windows 95 was promised to
run with the same hardware with the same performance.
  * The reality is explained by PC Computing, April 1995,
    describing 386SX systems as not fully operational and
    saying 486 25MHz systems "run out of gas too quickly."

  * The same article reported 200MB of hard disk storage.
  * Microsoft recommends 8MB RAM minimally.
  * Only relatively new systems with Plug-and-Play (PnP) BIOS
    will be able to utilize PnP.  Replacing adapters with PnP
    versions will be another major expense for those hoping
    to exploit the advantages of PnP.


Where Does Microsoft See Windows 95 Fitting In?
-----------------------------------------------

According to a Microsoft spec sheet, Windows 95 is "for
computer users everywhere."  However according to Bill Gates,
Steve Ballmer and other Microsoft executives, Windows NT is a
more appropriate operating system for corporate desktops.  In
the August 1995 Byte magazine, Jim Allchin, senior vice
president of Microsoft Business Systems, is quoted as saying,
"If you're in a corporate environment and you are thinking
long-term, and hardware isn't a limitation, you should be
looking at Windows NT."  In fact, whenever Microsoft is
challenged on the stability or robustness of Windows 95, they
revert back to Windows NT being the best choice for "serious
business applications."   Do you or your customers run
non-serious business applications?

Around the Bend toward Cairo  (The Future])
-------------------------------------------

Microsoft only wants to support one operating system across
all segments, from consumer to large enterprise, but that is
not feasible today due to the high hardware requirements on
NT.  So,  in order to stave off market share gains by OS/2
Warp, Microsoft is attempting to position Windows 95 as a
full 32-bit operating system and the follow-on to Windows
3.x.  In a recent interview, Bill Gates predicted a short
lifespan for Windows 95, telling users to expect, "One more
major round of Windows"  to be built on Windows 95 prior to
Microsoft refocusing "just on NT."  In Computer Reseller
News, 6/12/95, Bill Gates was quoted as saying,  "We will
focus on NT as our mainstream platform 2 to 4 years from now
when 16MB Şof RAMÝ  on the desktop is common."   Eric
Grevstad summed it up well in the April 28, 1995 Computer
Shopper,  "Face it; Microsoft's answer to its own ad slogan,
'Where do you want to go today?' is usually 'Great, we'll
take you there next year.' "

OS/2 has over 9 million licenses and an 8-year history in
thousands of major corporations worldwide.  How can questions
concerning OS/2 Warp's longevity continue to get major press
coverage when Windows 95 has been declared obsolete by its
originator even before release?

Microsoft appears to be incorporating a bait-and-switch
strategy in the business segment as they continue to hype
Windows 95 but in the background openly admit that Windows NT
is the better choice.  Their hope is that many customers will
succumb to the multimillion dollar media blitz and purchase
Windows 95, not realizing that Microsoft plans on replacing
the product within a few years.  For those who are savvy
enough to realize that they want a full 32-bit operating
system or that the specter of pain and expense generated by
an interim migration is too severe, Microsoft recommends
Windows NT  today.

PC Week's Jim Louderback summed it up well in his article
titled, "Windows 95 or NT Decision Clear as Mud."  He wrote,
"Suddenly Windows 95 looks more like Bob 2.0 than a corporate
solution.  And, with that new holy-grail operating system
going to beta very soon, could Windows 95 simply be a an NT
Trojan Horse?"  Personal Software magazine,  September 1995,
printed an article titled "OS/2 Warp Connect versus Windows
Family"  that details why OS/2 Warp Connect is a superior
solution to Windows NT.

Summary
+++++++

Don't be bullied by marketing blitz.  An operating system
choice is not a fashion statement.  Getting your work done as
quickly as possible means that all of the applications you
are dependent on run in the most productive and least
intrusive manner.  Do you want to trust your productivity to
version 1.0 of an operating system that requires version 1.0
applications to exploit it?

With OS/2 Warp, you receive the benefits of a full 32-bit,
robust, preemptive multitasking operating system which has
been trusted to run most of the banking industry's automatic
cash machines, to control the cash registers in fast food
chains and department stores, and to make reservations on the
busiest airline systems.  OS/2 runs major sporting events
like the Olympics and Indianapolis 500. Judicial systems,
police departments, and prisons all rely heavily on OS/2.
As part of the world's business fabric, these are situations
where downtime cannot be tolerated.   Doesn't your own time
and work warrant the same consideration?

OS/2 Warp received InfoWorld's Readers Choice award; this was
followed by PC Magazine's special edition of their annual
readers survey in July 1995.  The results, based on responses
from users, showed, "Just as in last year's survey, OS/2 was
the only operating system that scored for overall
satisfaction significantly better than average."   This is an
assessment from the user community,  many of whom depend on
their personal computers to provide their livelihood.  It is
not the results of a $200 million advertising campaign.

References
++++++++++

01 August 9, 1995 show,  Regular Windows with a better
interface, "a Model T with a Corvette cover"
02 August 9, 1995 show,  "It is still DOS."  "If you want to
multitask, get OS/2"
03 Syndicated Doonesbury comic strip August 21 through August
25, 1995

Disclaimer
++++++++++

The information contained in this document represents the
current view of IBM Corporation on the issues discussed at
the date of publication.  Because IBM must respond to
changing market conditions, it should not be interpreted to
be a commitment on the part of IBM.  All information, claims,
references and comparisons related to Windows 95 in this
document are based upon non-confidential information
currently available as of the date of publication. This
document is for informational purposes only.  IBM makes NO
WARRANTIES, EXPRESSED OR IMPLIED, IN THIS DOCUMENT.

Copyrights 1995 IBM Corporation, All Rights Reserved.

OS/2 is a registered trademark and OS/2 Crash Protection is a
trademark of International Business Machines Corporation.

Lotus and Lotus Notes are registered trademarks of Lotus
Development Corporation

Microsoft is a registered trademark and Windows is a
trademark of Microsoft, Inc.

Other company, product, and service names may be trademarks
or service marks of others.