High hopes for the new OS/2

Article Abstract:

IBM's OS/2 2.0 operating system is highly impressive and robust but its market acceptance can be stymied by its power requirements. The minimum configuration for operating the new OS/2 includes 4Mbytes of RAM, a 60Mbyte hard disk and an Intel 80386SX-based or higher microprocessor. While IBM had made sure that the new version is easy to install and use, the automatic installation process needs 31Mbytes of hard disk space. With a 40Mbyte hard disk, which is what the average PC has, there is not enough room for data or applications. OS/2 2.0's marketability is also determined by the availability of useful applications, including data bases, spreadsheets, word processors and E-mail. IBM claims that more than 2,500 OS/2 applications are available while about 1,200 are forthcoming. General-purpose OS/2 applications are scarce, however. Despite the operating system's ability to run more than 20,000 MS-DOS and Windows programs, it still has to compete with Windows, which could run the same programs and requires less hardware investments.

Prepackaged software, Operating systems (Software), Operating systems, International Business Machines Corp., IBM, Design and construction, Specifications, Operating System, Applications, Software Design, OS/2 2.0 (Operating system)

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Why Compaq is getting down in the trenches

Article Abstract:

Compaq refocuses on low-cost microcomputers and new distribution channels to remain competitive in the troubled computer industry. Compaq's history is one of rapid expansion and profitability; the workstation manufacturer sold $111 million worth of product in its first year, 1983. Sales for 1990 were $3.6 billion, but the company reports its first loss, $70 million, in the quarter ended Sep 30, 1991. To correct the slide, Compaq is changing its emphasis from high-end corporate computers to lower-level microcomputers. It may sell them through mail order channels, rather than the usual authorized dealerships. It also redirects its attention away from competing with IBM to the challenge of IBM-compatible vendors, such as Dell Computer Corp. Eckhard Pfeiffer replaces one of the company's founders, Joseph (Rod) Canion, as CEO to speed change. New pricing policies, more direct customer support, more efficient manufacturing methods, a new product line and some reorganization are all part of Compaq's repositioning.

Management, Computer industry, Microcomputers, Compaq Computer Corp., CPQ, Business planning, Industry Analysis, Microcomputer, Competition, Low Cost, Distribution Management, Reorganization

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