Development of New Operating System OS/2

In 1985, Microsoft and IBM entered into a joint development agreement to create a new operating system called OS/2, intended as the long term successor to MS-DOS. The agreement formalized collaboration between the two companies, combining IBM’s hardware platform strategy with Microsoft’s software development expertise. The project aimed to deliver a more advanced operating system capable of multitasking, improved memory management, and support for emerging Intel processors, particularly the protected mode features of the Intel 80286. Development of OS/2 began following the agreement, with both companies contributing engineering teams. The operating system was designed to overcome limitations of MS-DOS, including its single tasking environment and restricted memory addressing. Early plans included support for preemptive multitasking, virtual memory concepts, and a future graphical interface. IBM intended OS/2 to complement its Personal System/2 hardware line, while Microsoft viewed the project as the next generation platform for IBM compatible PCs. Although the partnership began in 1985, the operating system itself was introduced later, with OS/2 version 1.0 released in December 1987. During the development period, Microsoft also continued work on Windows, which initially ran on top of MS-DOS. Differences in strategy between the two companies eventually emerged in the early 1990s, leading to the end of the joint effort, with IBM continuing OS/2 independently and Microsoft focusing on Windows and Windows NT.