Linked by Thom Holwerda on Thu 6th Jul 2006 19:40 UTC
SGI and IRIX SGI hopes to emerge as a leaner, meaner organisation by the end of the third quarter. The hardware maker this week filed an amended reorganisation plan that calls for it to finish off bankruptcy proceedings by September. If all goes as expected, SGI will trim its total debt down to USD 70m from USD 345m. Some of the debt will be removed in exchange for the privilege of investing more money in SGI 2.0.
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RE[3]: Out of caviar...
by ceo1 on Fri 7th Jul 2006 09:53 UTC in reply to "RE[2]: Out of caviar..."
Member since:

> xxmf wrote:
> well yes as the other reply says sg finally realised that their market was shrinking because of clusters, however cheaper does not equate with better. Altix has pretty much lowest latency, highest bandwidth, supersize IO, largest memory on the market, largest linux server you can buy, ....

Two problems with what you're saying:
- It's incorrect. Lowest latency & highest bandwidth, supersize IO, largest memory - none of it.
- And not including the above comment : Who are the buyers for the largest Linux server with the largest memory on the market with supersize IO, lowest latency and highest bandwidth? SGI has primarily been kept alive by a) sale of storage, b) a few corporations who were unable to make the shift in time and c) national labs in various countries.

The problem is, even though SGI 2.0 offloads $280M of debt, they as much as ever need to show profit and growth. They see storage as a cash cow (which it may very well be, outside of jurisdiction, we only stick to Lustre on regular Linux clusters) but I just can't see SGI only be a storage company.

Reply Parent Score: 1

RE[4]: Out of caviar...
by xxmf on Fri 7th Jul 2006 10:39 in reply to "RE[3]: Out of caviar..."
xxmf Member since:

"- It's incorrect. Lowest latency & highest bandwidth, supersize IO, largest memory - none of it. "

OK, who else built a 13TB machine?

For the other. What is wrong with storage sales, when the storage sales are in fact driven by the IO architecture?
What is wrong with selling to national labs for that matter...

but to answer your question: yes they have rather niche/boutique customer list and need to break out into the commercial enterprise space. The sad fact is altix is a good engine from that, but those people are very conservative - they switch supplier rarely and certainly not for a co. in the financial mess sgi got itself into.

Yes I didn't respond about whether sgi will do well post-11, and they can't be a pure storage play I agree. What I understand is that part of the problem that is preventing them from geting into a profitable scenario is the ongoing costs associated with that 280M debt, as well as a bunch of other burdens associated with once being a Big Company^tm. The 11 gives them the wiggle room to fix some issues, obviously they have to be doing better on an ongoing basis too, but lowering the bar doesn't hurt at all.

Reply Parent Score: 1