Richardson, Texas-based Micrografx Inc says it is playing Microsoft Corp off against IBM Corp in its graphics development work for Windows NT and OS/2 v.2 respectively. Not only is it wary of putting all its eggs in one basket, it is also eager to maintain healthy competition between the two companies. Nevertheless Micrografx president George Grayson, says that IBM’s OS/2 team is falling apart. Tommy Steele, one of the last original members, has left to go to Huntsville, Alabama-based Intergraph Inc and the remaining players are said to be sadly lacking in direction. Additionally, the OS/2 kernal is still 16-bit, which imposes severe performance limitations. Thunking results as 16-bit addresses have to be changed to 32-bit ones and this slows the system down. In fact, the only element said actually to be 32-bit is the memory manager. As yet, no decision has been reached as to a 32-bit kernal. IBM is unsure about which one to use and who will help it develop it. Nonetheless, Mirrors, which enables Windows applications to be converted to OS/2, is complete now, although Micrografx is not allowed to ship it due to bureaucracy within IBM. While Micrografx is becoming increasingly disillusioned with this state of affairs, joint work is forecast to continue as IBM is quoted as paying well. IBM is, on the other hand, still looking for ways to make OS/2 profitable. Grayson feels that by shipping segments of its operating system and then not even managing to get them out on time, IBM is not only squandering a great opportunity, but also alienating its clientele, especially now that OS/2 2.0 is available. On the other hand, Grayson does feel that Windows NT will be Microsoft’s single most strategic product. When it finally does emerge, Microsoft’s marketing muscle is forecast to guarantee its popularity. In addition, the position of Windows as market leader is predicted to provide a ready-made market for NT. The other possible contender in the personal computer operating system market is Unix. However, Grayson feels that Unix will not be in a position to develop as a client operating system due to a lack of trust among developers towards AT&T Co, despite the fig-leaf spin-out of unx System Laboratories Inc. Another company running up against trouble is Taligent Inc, the IBM and Apple Computer Inc joint company that is developing the Pink operating system. It is apparently experiencing a series of internal power struggles and is having serious problems in developing a coherent strategy as it can’t decide which direction to take, Grayson believes.