|========================================================================= OS/2 2.0 QUESTIONS & ANSWERS March 31, 1992 General Q1: Can I walk into a local software retailer today and purchase OS/2 2.0? A1: Our goal is to make OS/2 2.0 available everywhere DOS is available and will be widely available on dealer shelves toward the end of April. If a customer's remarketer does not yet have the product in stock, it will be available through an 800# where IBM is taking direct orders. Q2: When will Windows 3.1 code be included in OS/2 2.0? Will you issue another release? A2: As you know, we have the intellectual property rights to Windows 3.1 code and are currently running that code in our lab. We will review the final functionality of Windows 3.1 and base any feature updates on what our customers require. Q3: IBM has always said it will not sacrifice product quality to meet a delivery date. Is today's product of the highest possible quality or is it a buggy product that has been released to meet your set delivery date? A3: OS/2 is at a superior quality level. We believe we are delivering a world class product to our customers, one which for the first time exploits the power of 32-bit Intel-based systems. Q4: Now that the 32-bit graphics engine will not be included in the GA version of OS/2 2.0, is the product a true 32-bit operating system? A4: We are shipping a full-function 32-bit operating system with a hybrid graphics engine. It will support both 32-bit and 16-bit graphics applications. As work continues, we will enhance 32-bit graphics support as part of our OS/2 product updates. Q5: When will the full 32-bit GRE be available? A5: We are delivering all the function at GA. Any additional 32-bit graphics technology would be provided as part of our regular product updates. Q6: How many copies of OS/2 2.0 do you expect to sell by year end '92? A6: Currently, we have more than 1 million OS/2 licenses and each of those users will receive a free upgrade to OS/2 2.0. We expect to sell numbers in the millions. Q7: How many free copies of OS/2 2.0 have you been giving away today? A7: Just enough for appropriate merchandising. As with any new software introduction, a portion of not-for-sale (NSF) copies are allocated for use by you, the press, as well as by consultants, analysts and user groups and by our dealers, to name a few. Q8: Will these not-for-sale (freebies) be included in your OS/2-installed base figures? A8: We will report unit shipments, just like the rest of the industry. Q9: How is IBM planning to measure the success of OS/2 2.0 in the short-term? Long term? A9: We use profitability, marketing share and customer satisfaction. Q10: How soon will you have another version or release of OS/2? A10: We do not anticipate that a new version of OS/2 will be required for some time. Rather, we will continue to enhance OS/2 2.0 over time by providing regular product enhancements. Pricing Q11: Will you offer an introductory price for OS/2 2.0? A11: Yes. Through July 31, Windows users can buy OS/2 2.0 for $49.00; any DOS user can upgrade for $99.00 and new purchasers can buy OS/2 2.0 for $139.00. Q12: What about OS/2 1.X users? A12: All existing OS/2 users can upgrade to 2.0 for free until July 31. Q13: What is the process for DOS, Windows and OS/2 upgrades during promotional period? What proof do I need to provide? A13: Actual proof of purchase or the original first page of the operating manual. (More detail to come.) Marketing Q14: IBM must have invested heavily in the development of OS/2 2.0. How much did you spend? A14: Development costs are proprietary. (Note: If responding to WSJ article, $2.5 billion was grossly exaggerated.) Q15: Does IBM expect OS/2 2.0 to be a big revenue producer? A15: We believe OS/2 2.0 will be a success in the marketplace. Q16: Are you looking at different ways of marketing OS/2 2.0 in the channels? For instance, will you be selling it direct? A16: Our goal is to make OS/2 available everywhere DOS is available. We will be selling OS/2 2.0 in ways that reach our target audiences. Our preferred delivery channel is through our business partners (retailers and dealers). However, we will also be selling OS/2 2.0 through catalogs, 800# ordering and IBM direct marketing force. Q17: How much are you spending altogether in advertising/ promotion? A17: Our promotional budget is proprietary. However, let me emphasize that we have established a far-reaching campaign. In fact, it will be one of our largest worldwide ad investments for an IBM product this year. Q18: Will you be doing any TV advertisements? A18: We have a hard-hitting print effort planned, however, we are certainly exploring additional media. Q19: Who is your advertising target audience? A19: We are targeting our traditional customers as well as PC end users. We have an aggressive effort aimed at a comprehensive audience. ISVs/OEMs Q20: How many ISV applications are currently ready to run on OS/2 2.0? A20: We have more than 1,000 ISVs who have committed to deliver 32-bit applications by the end of the year. A substantial number of these applications are slated for 2Q and 3Q. Q21: Have you funded any of the ISVs development efforts? A21: We have a handful of joint development agreements -- all sound business decisions -- which we feel will result in a satisfactory return to IBM. We are not "bankrolling" anyone. Q22: How does your OEM arrangement work? A22: As part of IBM's intention to support OEM 386 or 486 PC platforms, the company will work with all users who may experience compatibility issues in their first three months of use and, if a resolution is not possible, the user will be reimbursed for the cost of OS/2 2.0. IBM also intends to offer IBM OS/2 2.0, Extended Services for OS/2, LAN Server 2.0 and Toolkits to OEMs that want to deliver the new software with their personal computers. Q23: Do you think you'll be successful in getting OEMs to pre-load OS/2 2.0 on their systems? A23: Yes. IBM's intent is to support all 386 and above machines that are PC compatible. As such, we are testing hundreds of OEM machines to insure that OS/2 2.0 will work. IBM maintains a list of supported OEM machine models which will be periodically updated as more machines are tested for OS/2 compatibility. At present, OS/2 has been tested successfully on most of the major PC brands, including: Compaq, Tandy, Dell, AST, Zenith, Packard Bell, Epson, Toshiba and over 30 others. Q24: Of your beta customers how many have committed to purchasing 2.0? A24: Response from beta users has been overwhelmingly positive. Many are OS/2 1.3 customers already and therefore will receive a free upgrade to 2.0. Our Limited Availability (LA) customers have made significant purchase commitments to OS/2 2.0. Networking Q25: When will LAN Server 2.0 be generally available? A25: OS/2 LAN Server 2.0 will be available on April 10. Q26: What is IBM's LAN strategy for OS/2 -- in terms of LAN Server, database and communications server capabilities? A26: OS/2 is an industrial strength platform designed to provide PC users with the broadest choices in the industry today for networking in small, intermediate and large businesses. IBM's networking strategy for OS/2 begins with the base operating system itself -- with its LAN-aware shell and multitasking capabilities so suitable for taking advantage of rich network resources. LAN Server 2.0 combines industry-leading function for OS/2, DOS and Windows clients in terms of administering LAN resources, such as applications, files and print. Extended Services offers a powerful LAN client/server database option (DDCS) that allows DOS, OS/2 and Windows clients to tap into much larger network databases through a single server on a LAN. Q27: LAN Server has been viewed as a poor performer. What are the number of LAN Servers running on OS/2 2.0? A27: We have run additional testing to show that the performance of LAN Server 2.0 is 2.5 times faster than LAN Server 1.3, depending on workload characteristics. It is extremely competitive in OS/2 environments. Q28: How does IBM expect to exert leadership with OS/2 as a networking platform without TCP/IP support? A28: OS/2 2.0 has very strong TCP/IP internetworking capabilities through TCP/IP Version 1.2 for OS/2 2.0 clients. (TCP/IP Version 2.0 supports DOS and Windows users.) TCP/IP Version 1.2 provides OS/2 PCs with both client and server access to AIX and UNIX workstations, as well as to X.25 packet switching wide area networks and to X-windows engineering graphics. Q29: How many clients can be maintained at one time with LAN Server 2.0? A29: There is no limit to clients on a single server, however, a reasonable maximum would be the Token-Ring standard of 260 clients per server on a ring. Q30: How does OS/2 work with NetView? A30: OS/2 sends alerts to NetView through its communications manager capability, now a part of Extended Services. These alerts will be enhanced over time but focus today on problems arising in network communication and in resource sharing. LAN Management Utilities/2 provides NetView with information on LAN utilization and configuration and helps NetView perform functions such as server recovery. Q31: I've heard from early customers that installing Extended Services is a mammoth undertaking. Is this true? Will you fix it? A31: While IBM views Extended Services installability as acceptable today, never the less it will continue to hone the install procedure making it easier for end users for the future. Q32: How does your recent networking announcement on APPN affect OS/2 2.0? A32: OS/2 2.0 provides high performance in APPN support through Extended Services. Advanced-Peer-to-Peer Networking, or APPN, is an industry-leading networking infrastructure for client/server distributed application -- providing great flexibility for network reconfigurations as well as robustness for the high bandwidth transmissions. Taligent/PINK Q33: With the formation of Taligent, is IBM still committed to OS/2 2.0? A33: Yes. We plan to protect our customers' investment in OS/2 by providing OS/2 application support in the new object oriented environment should our customers desire to move to that environment. Q34: Should I just wait for Taligent and continue writing Windows applications? A34: Absolutely not. You're missing a great opportunity if you don't exploit the capabilities of OS/2 2.0 now. The application benefits you can achieve today with OS/2 2.0 far surpass what can be gained by other existing 32-bit Intel-based operating systems. Q35: What stages will take place in a transition from OS/2 to Taligent? What guidance would you give developers today? A35: OS/2 will continue to be enhanced in the '90s. Extensions to support multimedia, pen and tablet based applications distributed computing (e.g., DCE) will be added. Portability to non-Intel platforms is also planned as is the ability to run OS/2 applications within the Taligent environment. Microsoft/Windows 3.1 Q36: Bill Gates was quoted recently as saying that concerning OS/2 2.0, IBM "may have promised more than it can deliver." Is he correct and can you deliver a better Windows than Windows? A36: We are fully confident that we will be delivering everything that was promised for OS/2 2.0. First of all, this system contains much more functionality than was outlined in April 1991. In fact the performance we detailed at that time was met in our LA code last December. Secondly, IBM is delivering what its customers and ISVs have asked for -- a more crash-protected environment under 2.0. Q37: Do you view Microsoft as a direct competitor in the OS arena? A37: Absolutely. We are direct competitors in operating systems for the desktop. On the applications side, our strategy is inclusive. We want to embrace users of DOS and Windows programs and have them run these applications in a more stable environment -- OS/2. Q38: Will you incorporate NT technology into OS/2? A38: NT is not a currently available product. We have the rights to NT technology. However, most of the function that NT will have is in OS/2 2.0. We bring that function to OS/2 2.0 users today whereas NT is due sometime in 1993. Enterprise Q39: What is the role of OS/2 2.0 in an enterprise environment? A39: OS/2 2.0 provides an industrial strength operating system platform that provides the user with single workstation access to personal productivity applications, LAN based workgroup applications, and host-based enterprise applications. In essence, OS/2 2.0 provides the user with an entree into the total enterprise. OS/2 2.0 also provides a high performance platform for LAN server applications. Q40: How does OS/2 2.0 support SAA applications? A40: OS/2 2.0 is the most advanced open workstation environment. The OS/2 2.0 workplace shell conforms to the '91 object-oriented user interface. OS/2 2.0 also enables customer or vendor developed CUA '91 applications. With the addition of OS/2 Extended Services, OS/2 2.0 provides an SAA conforming relational database manager and extensive SAA CCS local area network and wide area communications connectivity. SAA CPI programming languages and services are supported on OS/2 2.0 with selected compilers offering 32-bit support. OS/2 2.0 also provides the workstation base for SAA cooperative applications. Q41: How does OS/2 2.0 participate in an open systems environment? A41: OS/2 2.0 with OS/2 Extended Services and/or OS/2 LAN Server offers a wide variety of industry and international standards for both client/server and wide area network environments. This allows customers to incorporate OS/2 based workstations and servers in a broad range of multi-vendor system environments. Q42: OS/2 Extended Edition had been designated as the SAA workstation environment? What is the impact of the repackaging of OS/2? A42: OS/2 2.0 with OS/2 Extended Services 1.0 (ES) is the successor to OS/2 EE except it doesn't include OS/2 LAN Requester. The combination of both programs provides the full complement of SAA function. Distributed Data Connection Services/2 (DDCS/2) is required on a workstation client or LAN server to access remote SAA host-based relational database managers. Q43: The OS/2 Workplace Shell differs in some respects with the CUA guidelines? Do you plan to correct these differences? A43: While there are some minor differences, the OS/2 2.0 Workplace Shell is CUA compliant. CUA is a set of guidelines for both environments and applications alike. The Workplace Shell, an implementation of the CUA architecture, provides a platform which allows users to run existing applications, while providing significant potential for future object oriented applications. The OS/2 Workplace Shell and CUA will both evolve over time. Customer experience will be a key factor. IBM will continue to ensure the highest degree of consistency possible, while providing the most usable solution for our customers.| ----- Regards, C. M. Vaughan ** All opinions expressed are mine and do not necessarily represent ** ** that of my employer. **