OS/2 Crush Plan

Date: June 1994

Snippet
Microsoft Confidential June 16, 1994

To Brad Silverberg, Brad Chase

From: Adamt Cc: Psgmktg Re: OS/2 "Crush" Plan - Draft

OVERVIEW

IBM has successfully increased worldwide momentum for 0S/2 through a combination of FUD, a new release (0S/2 for Windows) and hard work. Despite their apparent gains, Windows momentum continues with increasing sales for WFW 3.11. However, OS/2 is not going away, and the intensity at which IBMers, OS/2 diehards and the press continue pushing the product is a clear warning sign to Microsoft. Therefore, OS/2 "Crush" will focus, in the next 6 months, on OS/2=3Fs three major weaknesses: compatibility & support, performance running Windows applications, and a deadend future. Armed with the best test data available to date (including missing drivers, broken apps, bugs discussed on Compuserve, bugs fixed by IBM=3Fs latest service pak, and hard hitting performance results), we will proactively meet with the weeklies, distribute OS/2 response docs integrally to our field and externally on CS, and kick off a 30-city user group tour to stop IBM from further successful promotion of OS/2.

SITUATION

IBM has successfully re-ignited OS/2 momentum, including:


 * major coverage in PC weekIies and the Wall Street Journal


 * achieving a general perception that OS/2 is now ready for "prime time"


 * massive FUD against Windows 3.I and Windows NT


 * successfully comparison against slow selling NT

KEY ISSUES To contain and snuff OS/2 momentum, we must address:


 * constant press hype of OS/2 as a "real" alternative


 * OS/2=3Fs claimed sales momentum, including OFW


 * 16 vs. 32-bit code issue between OS/2, Chicago, WFW and NT


 * the key weaknesses in 0S/2 (.peN, drivers, bugs, compatibility)

OBJECTIVES

In the next six montlm, we will:


 * turn the tide on OS/2 momentum by meeting with all PC weeklies and generating 3 - 5 positive articles


 * equip our domestic sales force and the subs to fight off IBM in their accounts by disputing a document that exposes OS/2=3Fs terrible performance running Windows apps, identifies OS/2=3Fs poor driver support & broken apps and articulates OS/2=3Fs bleak future


 * fight fire with fire in electronic forums by distributing on Compuserve multiple documents that spotlight OS/2=3Fs weaknesses and successfully plant the seed of doom on OS/2=3Fs future as a mainstream OS


 * evangelize the Windows family to 24k IEUs in a 30-city user group tour by clearly positioning Win 3.x, WFW 3.x and Win NT in a newly developed superdemo which will include a "sneak preview" of Chicago


 * hit IBM where it hurts the most: hire David Barnes for 2HCY94 Chicago user group tour, kick off legal initiatives on false advertising and usage of Windows code in OFW, prepare backpocket ad campaign on Windows compatibility and perf running Win apps

PLAN

Kick Off

Jan 1 to Feb I ,

0S/2 Testing Finish internal testing; kickoff external testing Start Date: 1/1 Complete Date: 2/1

16/32 Code Analysis Finish 16/32 code analysis, including background Start Date: 1/1 article on where and why 32-bit is important Complete Date: 2/1 Comparison Complete internal OS/2 response doc; ship to field Start Date: 1/1

Documents

Complete fixst (of series) OS/2 resp doc for public bbs Complete Date: 2/1 User Group Tour Complete plan for 30-city tour to run Feb-May Start Date: 1/1 Complete Date: 2/1

PSG Training Do competitive overview & demo of OS/2 to PSG Start Date: 1/1 mktg, development and execs Complete Date: 2/1 Press Complete press plan for hitting PC weeklies Feb-June Start Date: I/1 Complete Date: 2/1

Winter Activities

Feb 1 to May 1 Press Visit PC weeklies Start Date: 2/I Complete Date: 5/1

Legal Initiatives Drive for resolution on IBM usage of Win code Start Date: 2/I Leak to press possible legal infringement on use of code, raising questions on royalty obligations to MS Complete Date: 5/I

Comparison Continue posting documents in public bbs Start Date: 2/1 Documents								Complete Date: ~/I

User Group Tour Kick off 30-city user group tour Start Date: 2/1 Complete Date: 5/1

Winter Sustain Plan Dates May 1 to July I

Advertising (oniy if nec) Run hard hitting perf/comp ads Start Dare: 5/1 Complete Date: 71

BUDGET

OS/2 Crush Budget

Item	Amount	comments

External Testing	$150,0ug User Group Tour	$300,000 will split 50/50 with NT Advertsing $500,000 estimate only; need meeting with O&M

total: $950,00 Misc

* Catmc (PSS tech) returns to PSS as of Jan 1.

Full Exhibit
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