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TIME's test drive last week revealed a fast, easy-to-use operating system that hints at what may be Gerstner's real ambition: an operating system designed and optimized for the Internet. IBM's thinking seems to be that the Net could be its best weapon yet in the war against Microsoft. Herewith, an exclusive look inside the Net-friendly program...
When Louis Gerstner arrived as CEO of IBM nearly three years ago, industry insiders saw the company's also-ran computer-operating system, called OS/2 Warp, as a likely target for the corporate ax. With just 13 million users, far behind Microsoft Windows' 120 million, OS/2 seemed doomed. But instead of killing the project, Gerstner beatified it, assigning the company's top engineers to it and giving V.P. Wally Casey a blank check for development. The results of the effort, code-named Merlin, will begin shipping to beta testers in the next month...
...majors might find the battle a little silly--both companies are spending millions of dollars developing products they largely give away. But it shows the importance of dominating an industry: almost every IBM-compatible computer comes with DOS and Windows, and many have application programs, like Word and Excel...
...blame on the cereal makers. After all, they're out to make money for their shareholders, and by that measure, they've been quite successful. Kellogg has generated a 19% annual return to shareholders between 1985 and 1995, making it a far better investment than, say, Exxon or IBM. And despite the staggering price rises, only recently have consumers started to change their behavior and buy something else. As he pondered Post's move, one rival industry executive put it this way, "People are predisposed to buy the cereals they prefer. Why should we do anything...
...understand how techies can become fans of a Luddite, one needs to look at the generational difference in attitudes toward technology. The Unabomber suspect went into isolation around the time computers still represented Big Brother. He never saw the comeuppance of IBM and the liberation of the Arpanet, the computer network built for the military-industrial complex. Arpanet mutated into the people's network, the Internet, something so decentralized and anarchic it appears to be torn from the very pages of the manifesto. "It's too bad that Ted Kaczynski, assuming he's the One, was not into...