The Rise and Fall of OS/2: IBM’s Forgotten Operating System

The article begins by recalling the dominant desktop operating systems—Windows, macOS, Linux—and introduces the largely forgotten OS/2, a 32‑bit OS that ran on x86 PCs and was once seen as a competitor to Windows.

It recounts the 1980 meeting between a young Bill Gates and IBM, the contract that gave IBM a permanent license to MS‑DOS and BASIC, and the strategic choice that allowed Microsoft to retain the right to sell DOS to other manufacturers, setting the stage for the PC clone market.

IBM’s attempt to create a new PC line (the PS/2) and a new operating system (OS/2) is described, including the technical challenges of the 80286 and 80386 CPUs, memory management, and the early lack of a graphical user interface.

The narrative follows OS/2’s development hurdles—bureaucracy, memory constraints, the costly MCA bus, and the “SIQ” bug that could freeze the GUI—while Microsoft pushed Windows 3.0/3.1 and later Windows 95, gaining market dominance.

Later sections detail IBM’s partnership attempts with Apple and Motorola, the PowerPC era, and the abandoned Workplace OS project, illustrating how IBM’s strategic indecision and focus on legacy mainframe markets undermined OS/2.

The piece concludes with lessons for modern hardware and software companies: avoid over‑compatibility with competitors, recognize disruptive threats early, and balance large‑scale corporate inertia against agile innovation.