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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RE: Comment by kaiwai
by segedunum on Wed 1st Apr 2009 23:55 UTC in reply to "Comment by kaiwai"
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...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.

Yer, selling off MIPS was very stupid, and like many companies that make knee-jerk reactions when the writing is on the wall, they throw the baby out with the bathwater. Moving from MIPS to Itanium was even more idiotic, and not only was it the wrong loss-making platform but it also destroyed their credibility quite a bit.

Moving into a high-performance computing niche was obviously the way to go because that's how they ended up surviving this long, but they sold the very thing that would have kept them in business.

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