By the end of the year, a merged Xenix+Unix System V.3 product is promised which will be binary compatible with Xenix/286, Xenix/386 and Unix V.3 applications, and also run PC-DOS software. The product will be a result of the agreement under which Interactive Systems has joined Microsoft and Santa Cruz Operation to sell develop Xenix on the Intel 80386 and other processors. The first version of Xenix/386 to exploit the 80386 architecture will not be System V.3-compatible; it will be available from Santa Cruz Operation and Microsoft in March. This version will have hooks into the VP/ix product that allows PC-DOS to run under Unix and was jointly developed by Interactive Systems and Phoenix Technologies; Santa Cruz has taken a licence to VP/ix and will be packaging the combined product for OEM customers. Meanwhile the version of Unix System V.3 for the 80386 developed by Interactive, commissioned by Intel for AT&T, is out on beta test sites and is currently being certified by AT&T for System V Interface Definition compatibility.