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Is the Game Finally up for SGI? 182

Rob writes to mention a Computer Business Review article looking at the bankruptcy of SGI, and whether the company is planning on a comeback. CEO Dennis McKenna is emphatic that the company isn't just looking for an exit strategy, but it's hard to see where they could go from here. From the article: "SGI has more challenges ahead, and I still find it hard to believe that after all of the chances it has had to run a profitable server and visualization business in the past it can miraculously do so now, selling lower-end boxes on even slimmer margins. But I'm hoping that the Chapter 11 has provided the necessary wake-up call for the company to get really lean really fast, because only from a more stable financial footing does it have any hope of fighting its way back onto new technology buyers' wish-lists."
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Is the Game Finally up for SGI?

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  • by acomj ( 20611 ) on Tuesday July 18, 2006 @01:06PM (#15737762) Homepage
    When SGI started selling intel based workstations, it was pretty much over.
    The expensive add on video card did little to add value compared to the hp/dells of the world.

      We have some SGI (Irix) based software here we ported fairly easily to solaris.

  • not really (Score:3, Insightful)

    by halfelven ( 207781 ) on Tuesday July 18, 2006 @01:07PM (#15737774)
    The company is going through a major re-org. They will probably do things very differently after emerging from Ch 11. You could say that the "old ways" at SGI are indeed dying. But the company as a business entity is not.
    Chapter 11 does not equal a death sentence, it's often just a way of flipping the bird to the creditors - that's what most people don't realize.
  • Re:SGI Video cards (Score:5, Insightful)

    by nuzak ( 959558 ) on Tuesday July 18, 2006 @01:08PM (#15737779) Journal
    > How much more prestiege there is to be gained, especially for nVidia who weren't picked, I don't know.

    nVidia poached most of SGI's engineers when they went big, which I guess soured their previous relationship. I suspect the decision to switch to ATI was based on politics, the sort that drive SGI into the ground into the first place. Good riddance

    Oh, pardon, that's sgi, not SGI. Ooh, lowercase, how trendy. That's the sort of thing they focus on over in Mountain View these days.

    I'll miss SGI about as much as I'll miss HP if they ever go under. The real company died a long time ago, we just haven't whacked their shambling zombie corpse with a shovel enough times yet.
  • by gnu-sucks ( 561404 ) on Tuesday July 18, 2006 @01:09PM (#15737788) Journal
    ...is that SGI's least-expesive system costs a nice $9,800. That's for one computer, running windows or linux. Basically a nice PC. Granted, it comes with 2GB ram, and some nice features. But still... ...and people thought Apple was expensive...
  • by h4ck7h3p14n37 ( 926070 ) on Tuesday July 18, 2006 @01:10PM (#15737792) Homepage

    When SGI announced their x86 based line of servers I can remember thinking the same thing, "why would I buy this $3,500 dollar PC from SGI for $6,000?" It seemed to me as if they had the same problem that Sun currently has, not being able to decide what business they're in.

  • VAMPIRES! (Score:1, Insightful)

    by Anonymous Coward on Tuesday July 18, 2006 @01:15PM (#15737837)
    VAMPIRES [imdb.com] are awesome man...

  • Re::-( cryx0r (Score:4, Insightful)

    by cyngus ( 753668 ) on Tuesday July 18, 2006 @01:22PM (#15737887)
    Don't you mean, "That's the way the NUMA flexes"?
  • by Kadin2048 ( 468275 ) <slashdot.kadin@xox y . net> on Tuesday July 18, 2006 @01:25PM (#15737902) Homepage Journal
    The problem with SGI is that they don't really have any compelling products anymore. They have some Linux-based HPC stuff, but I think they've lost the early lead they might have had (as a result of their clustering experience for graphics stuff) in that market to IBM. Then they have some Itanium workstations, which are hideously overpriced, and aside from being Itanium seem to pretty much be a run-of-the-mill workstation in a neat case. (About the only feature they have that you can't get on something from Sun/HP/IBM is a binary compatibility layer for running IRIX applications side-by-side with Linux ones.) And then of course they have some IRIX workstations, for the few people who still have a business reason for staying with IRIX.

    But most of the people still running IRIX are doing so because they have legacy applications that they need to use, which assumedly already runs on their existing hardware ... meaning they're not going to be purchasing a lot of new gear.

    SGI is rapidly running of of stuff to sell. What they do make looks really neat (gotta love purple), and I'd love to have one under my desk, but it's tough to come up with a business case for the premium it seems like they have to charge in order to stay afloat.

    As much as I hate to say it, being someone who's drooled over SGI gear for years, I think they need to exit the hardware business. Or perhaps license the SGI hardware brand out to someone else, to use as their high-end workstation brand. Then pare the company back and concentrate on software for the very high-end visualization markets, and perhaps offer consulting services for people converting from IRIX to Linux.

    It seems like they tried to play IRIX for far too long after the writing was on the wall, and the gamble with Itanium didn't help either. Running a single-vendor OS on what's rapidly becoming a single-vendor hardware platform isn't something that many people are going to be interested in.
  • Not Siggraph. (Score:4, Insightful)

    by ayeco ( 301053 ) on Tuesday July 18, 2006 @01:25PM (#15737906)
    As far as I can tell, SGI will not have a booth at Siggraph.org [siggraph.org]. That says something.
  • by Anonymous Coward on Tuesday July 18, 2006 @01:45PM (#15738104)
    That company had the most excellent name, and was perfectly in step to move into the 21st century, and they blew it. It may really have been as simple, and as petty, as changing the name, that started their boulder down the hill.

    But as far as I was concerned they missed the boat in '95 or so. My company wanted to buy SGI systems for graphics work, but for any reasonable amount of money at the time, the systems were entirely underpowered compared even to cheap consumer PC's running Photoshop. We had a huge budget, and the machines SGI tried to sell us were absolutely horrible, by anybody's standards. So their high end was probably better, but we didn't get the hook in our mouth so we never would have known.
  • by Cutting_Crew ( 708624 ) on Tuesday July 18, 2006 @01:47PM (#15738116)
    So who would the best buyer be if there was really a price on the table for OpenGL? I have always thought that they should just make GPU's and forget the rest, except maybe for that NASA supercomputer, the beast that it is.

    i would think any one of the companies currently on the ARB should be the ones that get to bid. any one of those would be favorable. Nvidia would be a great steal. ATI is in bed with DirectX and MS so i dunno about them. can IBM handle it? Apple would also be a good steal. what do you think?
  • Re:Apple (Score:3, Insightful)

    by sootman ( 158191 ) on Tuesday July 18, 2006 @01:58PM (#15738206) Homepage Journal
    I agree--they've done a lot of cool stuff, they've still got some good tech and people, and just like wanting a puppy to find a good home, I think Apple could do a lot of good stuff with SGI's assets.

    And on a related note, here's something I wrote last year when they were delisted, which struck me as funny then, and still does:*

    A few days after SGI was delisted [google.com], I stumbled across an old (1994) article about SGI [wired.com] while I was poking around in one of my favorite places, the Wired archive [wired.com]. The article has this quote from SGI founder Jim Clark:

    Clark is not afraid to publicly dis a company like Apple, much as Steve Jobs once mocked IBM.

    "Apple," Jim Clark will sigh, as if he were talking about a horse on its way to the glue factory. "They're not doing anything... Apple blew it."

    Then, with a dismissive wave of his hand, and just the hint of a grin: "I think they're in serious trouble."


    Funny how things can change in 12 years. :-)

    * in a sad way, of course--I used to drive past all the cool companies along 101 on my way to work when I lived in the Bay Area in the late 90s, and I have fond memories of those days, back when SGI was the coolest thing around.
  • Re:SGI Video cards (Score:2, Insightful)

    by necrodeep ( 96704 ) * on Tuesday July 18, 2006 @02:07PM (#15738274)
    I don't think so. I think had the name 'Silicon Graphics' been kept rather than the move to 'SGI' - then you would have a much higher presence for many of the things in the industry. Unfortnately, they lost almost all of their name recgonition when they made the name change - many people don't even know who SGI is these days. Now, they could bring back 'Silicon Graphics' as a brand name - and that might work out for them.

    Also, another thing that people always liked about their systems was the design astetics (flowing curves of their systems). They need to bring that back. Also, bring back the bleeding edge performance - or make the systems they are selling more affordable... otherwise they are doomed to fail yet again.

The key elements in human thinking are not numbers but labels of fuzzy sets. -- L. Zadeh

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