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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RE[2]: They failed...
by japail on Wed 2nd Nov 2005 22:08 UTC 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.

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