Linked by Thom Holwerda on Wed 2nd Nov 2005 17:39 UTC
SGI and IRIX Silicon Graphics Inc. today issued a melancholy press release confirming that it has been kicked off the New York Stock Exchange, and will now trade as a 'penny stock'. SGI was the high-bandwidth, visualization-rich, media-savvy computer systems company that flourished in a decade when media pundits clamored for a winner in what they called 'the convergence space'. SGI obliged, and spared nothing - for a while its budgets were flush for R&D and fancy architecture. "Oh, SGI, we loved you and you screwed up. Bigtime."
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They failed...
by Marcellus on Wed 2nd Nov 2005 20:07 UTC
Marcellus
Member since:
2005-08-26

They failed because they went Linux...
They failed because they thought that Linux was the way to go...
They failed because they thought Linux was stable enough for them to use...
They failed because they thought people and investors would fall for the Linux and F/OSS buzzwords...
They are just one of the companies that have learned the lesson that Linux is not the solution to their problems, with many more companies to follow.

Reply Score: 1

RE: They failed...
by on Wed 2nd Nov 2005 20:13 in reply to "They failed..."
Member since:

You mean... IBM is the next?! OMGWTFBBQ

P.S.: you'd better check the history of SGI. The linux transition came too late, and after being backstabbed by MS on an agreement to share technology and release SGI Windows NT workstations.

Reply Parent Score: 1

RE[2]: They failed...
by on Wed 2nd Nov 2005 20:23 in reply to "RE: They failed..."
Member since:

MS stabbing someone in the back?! That never happens. I hope they find the leadership they need to pull themselves out of this immense hole their in.

For some reason I feel gutted about this. They were always the shiznit in graphics...

Reply Parent Score: 0

RE[2]: They failed...
by Marcellus on Wed 2nd Nov 2005 21:01 in reply to "RE: They failed..."
Marcellus Member since:
2005-08-26

Linux transition came too late?
More like it came way too early for it to be a viable path to go at all.
Blame other companies all you want, but SGI's demise is their own doing.

Reply Parent Score: 1

RE[2]: They failed...
by kaiwai on Thu 3rd Nov 2005 03:13 in reply to "RE: They failed..."
kaiwai Member since:
2005-07-06

Please, learn to read darling; he pointed out that converting to Linux to solve financial problems isn't the solution, the panacea that will deliver rocketing profits overnight; if you're crap without Linux, you'll still be crap after adopting and basing the whole business model around it.

The fact remains, SGI went for the wrong team; they went Itanium but had no well known, high profile operating system to bolt ontop of it - Linux STILL has things lacking that are available in commercial UNIX's.

SGI would have been better off, for example, working with SUN to port Solaris to Itanium or POWER and concerntrating on their bread and butter - but personally, I think the biggest mistake was the move to Itanium; POWER would have been a better choice, coupld that with NUMAFlex and Solaris, and you would have all the ingredients for a great machine.

They also failed to see the writing on the wall, NO ONE, I repeat, NO ONE is going to pay $14,000 for a workstation that performs worse than a run of the mill x86 workstation and worse, lacks software that is supported by the vendor to a decent level.

Add that the fact that SGI had no big players on their ISV books - hell, its been atlest 2 decades since Adobe released something for Irix, little wonder the niche has been getting smaller; there are only a small amount of niche markets before they're flooded - sorry, its either that they join the mainstream, with a dabble in the niche markets; no company can survive simply going for small fry; SUN has learned that, and are FINALLY getting out there and realising that EVERYONE is their customer, not just a handful of loyal clients.

Reply Parent Score: 1

RE: They failed...
by CharAznable on Wed 2nd Nov 2005 20:38 in reply to "They failed..."
CharAznable Member since:
2005-07-06

s/Linux/Itanium/

Reply Parent Score: 1

RE: They failed...
by chemical_scum on Wed 2nd Nov 2005 20:42 in reply to "They failed..."
chemical_scum Member since:
2005-11-02

They failed because they went Linux...

Wrong little MS astroturfing buddy. They failed because they went with Windows NT in the mid 90's after apppointing a MS backed saboteur as CEO, who had just left HP after nearly destroying UNIX there on behalf of his masters in Redmond. He went on to become a V.P. at MS but he was of little use to them there so they dispensed with him like a pair old dirty socks.

Linux was SGI's only hope after that mess

Reply Parent Score: 5

RE[2]: They failed...
by japail on Wed 2nd Nov 2005 22:08 in reply to "RE: They failed..."
japail Member since:
2005-06-30

Linux could neither help nor harm SGI, since its problems had nothing to do with using Irix, NT, or Linux. SGI like the other major UNIX workstation and server vendors, saw an artificial demand during the bubble and a subsequent rapid erosion as the bubble waned. When purchases were made the costs associated with the niche hardware were unpopular with the new-found frugality of technology companies, and "good-enough" x86 systems emerged on the workstation market with superior compute-performance and significantly cheaper nVidia video cards with firmware optimized less for gaming and more for CAD, and in the server market with price/performance savings. It doesn't matter if large margins are obtained from hardware strategies with technical advantages if those advantages are only necessary for a niche whose volume is insufficient for meeting the overhead associated with operating a company that has scaled its operations under the assumption that the dot com era would never end. SGI, like most other UNIX vendors did this, and suffered tremendously as a result. Attempts to recover have met with less than stunning success.

Reply Parent Score: 1

RE: They failed...
by on Wed 2nd Nov 2005 21:13 in reply to "They failed..."
Member since:

Please, a shot in the back of the (empty) head for Marcellus..

Reply Parent Score: -1