Giant missteps: how an IBM attempt to regain PC lead has slid into trouble; saga of OS/2 software shows firm's bureaucratic ills, hints problems ahead; the tension with Microsoft

Article Abstract:

IBM's recent announcement of plans to decentralize and restructure itself were preceded by an ongoing attempt to re-establish itself as the leader in the microcomputer market. This attempt is not going well. IBM is now engaged in a struggle with Microsoft Corp over operating-system software. Industry observers believe the company that controls operating systems will control applications software as a consequence. IBM is backing its new OS/2 program, but Microsoft is betting on its own Windows graphical user interface, which works with MS-DOS, the operating system already being used on most IBM-compatible microcomputers. Windows is a huge success, with more than seven million copies already sold. OS/2's history, on the other hand, illustrates problems IBM is encountering because of management mistakes in a context of an unwieldy, bureaucratic structure.

Electronic computers, Office machines, not elsewhere classified, Computer integrated systems design, Computer industry, Microcomputers, Product information, Microsoft Corp., Operating systems (Software), Marketing, Operating systems, Software engineering, International Business Machines Corp., IBM, Bureaucracy, MSFT, Company Profile, Operating System, Management Style, Microcomputer, Organization Structure, OS/2, OS/2 (Operating system)

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Software firm issues warning about results

Article Abstract:

Computer Associates International Inc (CAI) is issuing warnings about its 2nd qtr earnings results, for the qtr ending Sept 30, 1989. The software company, which has been growing rapidly, is postponing its acquisition of Cullinet Software Inc. CAI's data base management sales are lower, due to customers waiting for the takeover to be completed. The company hopes to complete the acquisition by Sept 1989, but pending sales will not be completed by the 2nd qtr. CAI is unsure how this qtr will compare with 1988's 2nd qtr, when CAI earned $28.9 million (36 cents a share) on a $223.7 million revenue. Investors are wondering whether CAI's growth can continue.

Mergers, acquisitions and divestments, Finance, DBMS software, CA Inc., CA, Growth (Physiology), DBMS, Growth, Acquisition, Second Quarter, Cullinet Software Inc., CUL

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Painful birth; creating new software was agonizing task for Mitch Kapor firm; despite expert's experience, job repeatedly overran time and cost forecasts; a line: "%3.0f %6.1f/n" ...

Article Abstract:

The computer software development process for the utility program On Location at ON Technology Corp illustrates how painstaking and exasperating developing new software can be in the $8 billion-a-year computer software industry. On Location went through 30 versions before going to manufacturing, exceeded its cost and time forecasts and caused personal conflicts between co-founders Mitchell Kapor and Peter Miller that eventually caused Miller to resign. The difficulties in developing a finished product from a bug-ridden code was the most expensive and time-consuming element of the project.

Computer software industry, Business planning, Object oriented programming, Miller, Peter, Kapor, Mitchell, ON Technology Corp., Object-Oriented Programming, On Location (Text search and retievel software)

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