IBM PC-DOS was one of three major operating systems that dominated the personal computer market from about 1985 to 1995. The original 1981 arrangement between IBM and Microsoft was that Microsoft would provide the base product and that both firms would work on developing different parts of it into a more powerful and robust system, and then share the resultant code. MS-DOS and PC DOS were to be marketed separately: IBM selling to itself for the IBM PC, and Microsoft selling to the open market. ThinkPad products currently have a copy of the latest version of PC DOS in their Rescue and Recovery partition.
For DOS versions 1 through 5, the differences between MS-DOS and PC DOS remained trivial. After the release of DOS 5.0, however, IBM and Microsoft, until then the closest of allies, had a serious falling out. The primary issue was the future of more advanced operating systems—Microsoft favoring Windows because it was easier to market and they owned one hundred percent of it and IBM favoring the much more ambitious and technically sophisticated joint IBM–Microsoft project OS/2—but the ramifications for the IBM–Microsoft business relationship were broader. From this time on, MS-DOS and PC DOS would diverge, and for the first time, IBM would start actively marketing PC DOS to other computer manufacturers and to the public at large.
IBM PSP (their Personal Software Products arm) aimed to make sure that PC DOS remained one jump ahead of its better-known competitor in the version number race. After MS-DOS 6.0 was released, the then-beta PC DOS 6.0 was released as PC DOS 6.1. Soon after, MS-DOS 6.0 ran into stability problems and had to be upgraded, becoming MS-DOS 6.2. A lawsuit prompted Microsoft to release a version without DoubleSpace, which was 6.21 and then Microsoft developed DriveSpace, which does not use the infriging technology and included it in the final version, 6.22. In response, IBM updated PC DOS to version 6.3, which was to become the best-known and most successful version. A substantial number of smaller PC manufacturers switched to PC DOS at this time, particularly those that grew tired of waiting for the long-promised update to the now-ancient DR-DOS 6.0 from Digital Research/Novell.
The last competition of the DOS wars came with the more-or-less simultaneous release of PC DOS 7.0 and Novell DOS 7.0. The general expectation was that Novell's feature-rich product would prove superior and more successful: the reality was that PC DOS was substantially more reliable and easier to configure than either of its competitors, and usually cheaper too. In the short term, PC DOS looked like a winner.
The final release, PC DOS 2000, found its niche in the embedded software market and elsewhere. This version dealt with the Year 2000 problem. Versions 7 and 2000 supported a diskette format known as XDF, which allowed for more data to be written to a standard floppy disk than usual.
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