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[2]: Comment by kaiwai
by kaiwai on Thu 2nd Apr 2009 00:36 UTC in reply to "RE: Comment by kaiwai"
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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.

True, and hey, even if their high end failed - they could turn into a fabless chip design company, fold the existing engineers into MIPS, change the name, and focus on low cost, low power CPU's and chipsets for the embedded market. They would have a plan B if their plan A failed.

Imagine today had they still owned it - they could be jumping on the Netbook bandwagon pitching low powered alternative to Atom, even if they only got 10% of the netbook market (35million) it would still be 3.5million units selling with MIPS based processors - imagine the money they could have made!

Btw, you talked about MIPS based machines; they actually owned the MIPS organisation itself; the organisation that designed the chips. A gold mine had they used enough commonsense to see their MIPS as the saving grace if their workstation and high end side needed to be put out to pasture.

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