Linked by Thom Holwerda on Wed 1st Apr 2009 13:15 UTC
SGI and IRIX Silicon Graphics Inc., the perma-struggling workstation-turned-server-maker, filed for bankruptcy protection today, and was immediately bought by Rackable Systems. Rackable has signed to take on all of SGI's liabilities. The deal is expected to complete in 60 days. The combined company will target the hyper-competitive market for x86 boxes for cluster and high performance computing, internet and cloud services. "This combination gives us the potential for significant operational synergies, a strong balance sheet, and positions the combined company for long-term growth and profitability," said Rackable CEO Mark Barrenechea.
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Comment by kaiwai
by kaiwai on Wed 1st Apr 2009 22:37 UTC
kaiwai
Member since:
2005-07-06

SGI reminds me of Corel in that it tried a litany of stupid things and as a result it drained so much money that when a good idea did come along but required significant money to cover the transition period (from the old to the new model) they lacked what they needed.

A prime example was their foray into Windows workstations, their purchasing of Cray and probably the worse of all - selling off the MIPS unit when had it remained focused would have bought it much needed revenue by selling its products to network device manufacturers etc. It was the lack of focus on who they are, what they are, and a greater vision for the company to work towards.

Yes, there was a transition to cheaper workstations that were good enough, but this didn't happen over night, SGI could have gradually lowered the price, increased volume, and they would have been in a situation where although they would be slightly more expensive - it would still be an option for someone to purchase. Servers the same thing, gradually bring down the price, improve IRIX (making it easier to use) and get it to the point where it would be an possible option rather than a pipe dream.

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