Linked by Thom Holwerda on Wed 2nd Nov 2005 17:39 UTC
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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.