No Fragments Archive 10: Diskmags/nf_archive_10.iso/MAGS/INFO/IINFO53.MSA/TEXT_IBAPACT.TXT

Text File | 1991-07-11 | 8KB | 130 lines

 > MAC REPORT   (from ST Report)
   ==========

 by Robert Allbritton


          --==<< IBM and Apple Computer Announce Agreement >>==--

     Apple Computer Inc and International Business Machines Corp. announced
 on Wednesday  their intentions  to jointly create and develop new software
 products. The letter of intent, signed by the  two computer manufacturers,
 covers four basic areas:

  -  A new joint venture company will be formed. Its management will be in-
     dependent of Apple and IBM, but it will be given charge for developing
     a next generation operating system.

  -   The integration of Apple's Macintosh environment and operating system
     into IBM's long term strategy.

  -  Apple will use the RS/6000 RISC processor in a new line of workstation
     products. The chip will be manufactured under license by Motorola Inc.
     In addition Motorola and IBM will design and manufacture a  new family
     of microprocessors.

  -  The two companies will bring forth common platforms and encourage wide
     spread industry support for these new technologies.

     This agreement has been one of the worst kept secrets  in the computer
 industry for many months now, but it is surprising in two respects: First,
 that it occurred at all, and second, that  it was  more comprehensive than
 expected. The  two manufactures  have been rivals for quite some time, but
 politics, and business, make odd bedfellows.

     There are several theories floating around  as  to  why  and  how this
 shotgun marriage  came to  pass.  One popular line of thinking claims that
 the two companies basically forced  themselves  into  one  another's arms.
 IBM and  Apple were being surrounded by the Advanced Computing Environment
 group (ACE) led by Microsoft, Digital, and Compaq.  The intent of  the ACE
 group is to lead the way in the development of the next generation of per-
 sonal computers  and workstations,  and until  Wednesday they  had no real
 competition.   Some have  gone as  far as  to say  that Microsoft, and its
 chairman Bill Gates, had formed ACE as a  unified front  so that Microsoft
 would be  guaranteed development  of any  next generation operating system
 while other ACE companies would be left to  design the  hardware (Digital,
 Compaq, et al.)

     The IBM  / Apple pact forms a similar team that represents between one
 third and one half of all of the small computers sold in America.  The IBM
 /  Apple   joint  venture  is  being  seen  as  a  threat  to  MS-DOS  for
 microcomputers and, to a  lesser extent,  UNIX on  workstations.   The two
 companies bring a considerable amount of already developed technology into
 the new venture as well.  IBM has  been working  with its  version of UNIX
 (AIX) for quite some time, and Apple brings the new technology it had been
 working on for its next generation operating system  called "pink."   What
 this next joint venture will attempt to bring forth is a product that will
 be compatible  with many  different families  of microprocessors including
 IBM's  RS/6000  RISC  chip,  Motorola's  680x0  family,  and Intel's 80x86
 family.  Apple will lend its expertise in user interfaces,  while IBM will
 lend its  experience with compatibility and connectivity.  Much of the new
 operating system will rely  on "object  oriented" programming  that allows
 the operating  system to  do much  more of the work than current operating
 systems allow, thus it makes it much easier to port programs from computer
 to computer.  In short, it could well be "UNIX for the rest of us."

     Yet it  is important  to note  that an undertaking of this nature will
 take years to  fully  develop.    No-one  is  expecting  to  see  this new
 operating system  before the middle of the decade.  However; what make the
 letter of intent so interesting is that it is even more comprehensive than
 this  extensive  joint  venture.    In  the  short  run,  not only has IBM
 legitimized the entire Macintosh  line to  corporate America,  but IBM may
 actually wind  up marketing  Macintosh.  In a similar move, Apple may wind
 up marketing IBM's RISC workstations.   This should  not be  confused with
 the new  joint venture,  and it  is mainly meant as a short term situation
 until the new machines are on-line.

     There are several other key issues involved here as well.  The Apple /
 IBM pact will also begin immediately sharing technology on multimedia sys-
 tems. Most of this technology flow will go from Apple to IBM (IBM has been
 very interested  in Apple's  new QuickTime extensions that allow real time
 compression, decompression, record and playback  of  video  in  a window).
 And Apple and IBM will join forces in development of their own versions of
 UNIX (IBM's AIX and Apple's A/UX).  But most ironic was the  blow dealt to
 Intel.

 IBM  and  Motorola  will  also  join  forces  to  develop  a new family of
 microprocessors based on IBM's POWER RISC 6000 technology, and share these
 new microprocessors with Apple.  This completes a triad of Motorola, Apple
 and IBM with a firm agenda for the future against the ACE  group of Intel,
 Compaq, Digital  and Microsoft  with a  more lose  agenda.  It also leaves
 workstation manufactures like Sun Microsystems in a bind.   Sun's software
 base gives  it strength,  but its  weak architecture leaves it vulnerable.
 Sun may well be faced with a choice of join the ACE  group or  suffer los-
 ses.

     Several legal  eagles have  pointed to the recent FTC investigation of
 Microsoft for potentially unfair business practice and say  that the Apple
 / IBM  pact may be headed for similar trouble, but so far Apple has denied
 it, emphasizing that the  two companies  will continue  to market machines
 separately.    While  the  Justice  Department here in Washington is still
 reviewing the proposed pact, several experts  have expressed  their doubts
 that it  will be challenged.  Additionally it should be noted that the ink
 is only drying on the letter of intent,  and no  formal contract  has been
 signed (which  should occur  later this year,) but these two companies are
 an absolute clash as far as corporate identity goes.  IBM has always main-
 tained  the  image  of  professionalism:  buttoned  down white shirt, dark
 suit, dark tie.  Apple's definition of formal means that  socks are requi-
 red.  This can cause problems when hammering out a major alliance, but ap-
 parently the two companies really feel the need to work together.  The two
 companies went  so far  as to  take IBM  corporate jets to unusual meeting
 places such as Austin,  Texas to  avoid detection.   Yet  in spite  of the
 precautions, this  deal has  been one of the worst kept secrets in the in-
 dustry.  It is also growing apparent that  the deal  is the  brainchild of
 the number  two men at IBM and Apple: Michael Spindler, President of Apple
 USA, and IBM's president for personal computers.

     This announcement is only two days old, and  in spite  of it occurring
 right at  the Fourth  of July  holiday, it  has still  managed to cause an
 uproar in the computer industry.   Some have  compared it  to a  merger of
 Ford and  General Motors,  other have  said it  is like England and France
 joining to attack Germany.  Whatever the case, more fallout  will occur in
 the next week and we will have a follow up report at that time.


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