OS/2 is a series of computer operating systems, initially created by Microsoft and IBM, then later developed by IBM exclusively. The name stands for "Operating System/2," because it was introduced as part of the same generation change release as IBM's "Personal System/2 (PS/2)" line of second-generation personal computers. The first version was released in December 1987 and many newer versions were released after, until December 2001.
In 1996, Warp 4 added Java and speech recognition software. IBM also released server editions of Warp 3 and Warp 4 which bundled IBM's LAN Server product directly into the operating system installation. A personal version of Lotus Notes was also included, with a number of template databases for contact management, brainstorming, and so forth. The UK-distributed free demo CD-ROM of OS/2 Warp essentially contained the entire OS and was easily, even accidentally, cracked, meaning that even people who liked it did not have to buy it. This was seen as a backdoor tactic to increase the number of OS/2 users, in the belief that this would increase sales and demand for third-party applications, and thus strengthen OS/2's desktop numbers. This suggestion was bolstered by the fact that this demo version had replaced another which was not so easily cracked, but which had been released with trial versions of various applications. In 2000, the July edition of Australian Personal Computer magazine bundled software CD-ROMs, included a full version of Warp 4 that required no activation and was essentially a free release. Special versions of OS/2 2.11 and Warp 4 also included symmetric multiprocessing (SMP) support.
While OS/2 was arguably technically superior to Microsoft Windows 95, OS/2 sales were largely concentrated in networked computing used by corporate professionals. OS/2 failed to develop much penetration in the consumer and stand-alone desktop PC segments; there were reports that it could not be installed properly on IBM's own Aptiva series of home PCs. Microsoft made an offer in 1994 where IBM would receive the same terms as Compaq (the number one PC manufacturer at the time) for a license of Windows 95, if IBM ended development of OS/2 completely. IBM however refused and instead went with an "IBM First" strategy of promoting OS/2 Warp and disparaging Windows, as IBM aimed to drive sales of its own software as well as hardware. By 1995, Windows 95 negotiations between IBM and Microsoft which were already difficult stalled when IBM purchased Lotus SmartSuite which would have directly competed with Microsoft Office. As a result of the dispute, IBM signed the license agreement 15 minutes before Microsoft's Windows 95 launch event, which was later than their competitors and this badly hurt sales of IBM PCs. IBM officials later conceded that OS/2 would not have been a viable operating system to keep them in the PC business.