Linked by Eugenia Loli on Wed 26th Feb 2003 08:05 UTC
SGI and IRIX "A long time ago, in an economy far, far away, computer manufacturer Silicon Graphics Inc. was a powerful force. Hollywood studios courted its executives. They spent hundreds of millions of dollars on the company's colorful and whimsically named machines - "Indigo," "Crimson" and "Onyx," among others. [...] Not anymore. Consumed by its own ambition and wounded by the surging popularity of the free Linux operating system, SGI has lost its star power in Hollywood." Read the article at NewsObserver by P.J. Huffstutter.
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karma & adaptation
by Michael on Wed 26th Feb 2003 13:18 UTC

SGI is just like Sun... making a giant profit on their machines, like 16 tons on the back of their customers. When the customers have alternatives that are so much more affordable, they are simply running away from SGI. Having purchased a SGI machine is like being a trauma victim. You don't ever want to go back there. It's abuse, plain and simple. How many builds of IRIX had tons of nasty bugs? Did a customer ever get a refund or free support or anything? Nope. All they got was more fees. And SGI hardware for many years has offered incredibly poor price/performance. So it is simply karma that SGI is fading away.

What to do to adapt?

1. Massively scale down the company.
2. Outsource their monster high-end machine to China, lock stock and barrel.
3. Reduce the price of the big machine by a factor of 10.
4. Form a partnership with Legend, say Legend Supercomputer, to sell this machine throuhgout China.
5. Take some cash and invest it as Apple has in getting some cool software for the hardware.

With China on a giant upswing for IT spending, it is the place to grow. SGI should be there, become the #1 high-end computer company in China.

And with high-end machines all made in China, SGI could then mount a massive attack on Sun, HP, etc., and kill them on price/performance. SGI could then easily get into Hollywood accounts as the leader. The other big boys, including Intel, wouldn't stand a chance against a totally made in China cheap supercomputer.

--ms