SGI Sets Sights On Turnaround

grub wrote to us about an article about SGI, and its ongoing battles to turn its corporate fortunes around. The company's been doing interesting stuff for a long time - here's to hoping they stay around.

Comments

I just don't see a way for them to do it..

[jcr]

SGI is caught in the classic problem that killed DEC, and is killing Tandem, Stratus, DG, and many others: the performance of the lowend is improving so quickly that we can do things on $1K machines that used to require $1M machines.

I have a friend who had an idea that could have saved them. When he was at SGI, he pointed out that machines that were optimized for graphics had to have great I/O performance, which would also make them great performers in another I/O intensive task: running RDMS engines like Oracle and Sybase. SGI management wasn't interested.

So, SGI employees and stockholders lose out, and the rest of us gain another lesson in the dangers of rigid thinking.

-jcr

Re:I just don't see a way for them to do it..

[foobar104]

SGI is caught in the classic problem that killed DEC, and is killing Tandem, Stratus, DG, and many others: the performance of the lowend is improving so quickly that we can do things on $1K machines that used to require $1M machines.

In a way, you're right. Every day I deal with the fact that SGI computers aren't cost-effective for general purpose tasks like file serving or database applications.

But at the same time, you've pointed out the reason why SGI is trying to do what they're trying to do. Some tasks that could previously only be done on SGI workstations can now be done on cheap(er) PC-type computers. I'm thinking of 3D modeling and image exploitation specifically, but there are lots of other examples, too.

So okay, SGI needs to get out of the desktop workstation business except where they can justify it. So they're doing that.

But there are some tasks that you've never been able to do cost-effectively on a PC-type system. Like high-definition or film compositing and editing. Sure, you can do film-resolution work with After Effects or Final Cut Pro, but it'd be so slow that you couldn't turn a profit doing it. So instead you buy a half-million-dollar Onyx and go to sleep every night on a big pile of money.

Now, for the first time, there's a desktop workstation that's capable of doing most of what an Onyx can do: Octane2. So now SGI is going to a lot of those customers that have Onyxes and asking them if they'd like to buy three or four smaller systems that do 80% of what the Onyx can do to augment their existing stuff. And many of them are saying yes, because (and this is the key) they already know they can be profitable doing it.

Of course, when SGI pushes down too far into the market space, they tend to get spanked a little. If you're doing standard-definition video editing, or god forbid compressed, you can do most of what you need with an Avid or Final Cut Pro on a G4. So SGI loses a lot there.

The trick: find the sweet spot, where the market is broad enough that you have a lot of customers to call on but not so broad that you get beat on price-performance, and sit there.

At the other end of the spectrum, there's the really high end. The Grand Challenge type stuff, like the project that motivated ASCI Blue Mountain at Los Alamos. If you're going to try to simulate a nuclear explosion instead of just setting one off and watching the pretty colors, you're going to need a computer that is several hundred times bigger than anything that had ever been built before. So there's an opportunity there to sell some of your big iron to the government, and (more importantly) to fund some R&D that will then trickle down to your commercial products so you can get back to beating the competition on features instead of fighting over price.

So yeah, in a way you're right. The low end keeps getting better. But as it does, we keep thinking of things to do-- both commercially and in the sciences-- that the low end can't handle. It's like swimming in the ocean. The waves are moving under you, and if you just sit still you're going to get dunked. But if you swim in the right direction at the right speed you can stay at the crest of the wave. That's the trick: to stay on the crest of the technology wave.

Re:Market woes

[MrDelSarto]

SGI equipment is not and never was in the same ballpark as a $AU1200 PC. A Beowulf cluster of 1024 PC's is not the same as an Origin 3000 of 1024 processors. Read about ccNUMA.

In terms of desktop processing, the I/O bandwidth of an O2/Ocatane can not be compared to a PC. In essence, that's where they differ from a PC with a GeForce. That's not to mention the video/audio hardware that comes built in that is well integrated into IRIX and for the most part well documented.

In general, with SGI you get what you pay for.

SGI is a great company (I've worked there) that's built on a culture of doing cool things with technology. They just seem to have made a lot of bad decisions. They seem to be returning to their core business now, i hope it works -- how many quaters have then been going to turn a profit next quater now?

SGI and marketing, wow factor

[green pizza]

SGI has always had a hard time trying to market itself. They've typically made endless incorrect assumptions and end up preaching to the choir. And yet, the wow factor that made the company and it's little cube logo a legend in the late 1980s is still there, abeit in a slightly different manner.

True, not everyone needs 512 or 1024 CPUs running on a single system under a single kernel. Or 16 graphics pipelines. But there are those that do. Which is why, shortly after the introduction of the Origin 3000 two years ago, an entire convoy of the machines were sent to Fort Meade.

It's almost as though SGI has gotten used to the high end, as though their technology (HW, SW, APIs, SDKs) no longer impress themsleves. Nowhere else, not even E&S, can a person find a platform that can drive up to 128 display channels (16 pipes x 8 channels per pipe) with perfect sync, or even at all. O2K and O3K (and more recently, O300 and Octane2) can drive multiple displays from one or more graphics pipelines. Raw, per-CPU performance isn't anything to write home about, but the thruput and latencies are perfect for generating insane 3D and mixing it with streams of HDTV... or anything. Think of a way-cool use of video and 3D. Now increase the complexity and choose, oh, 4 camera viewpoints. Maybe an additional display for stats and another for an "operators station". Easy with O2K/O3K (aka "Onyx" when gfx are invloved). It can be done and it's proven. They've been doing this sort of thing since you and I were using our "cutting edge" unaccelerated 2D graphics cards running at an "insane" 1024x768.

A pair of old demos SGI likes to show off are sometimes called "from space to your face", in which over 500 GB of sat photo textures are shuffled thru one or more InfiniteReality graphics pipes to provide a realtime "bungie jump" from the moon to earth and back. INSANE. 60fps/60hz locked. 4 huge disk RAIDs composed of dozens of drives grinding away like mad to keep the textures coming. WILD STUFF. All in a day's work.

SGI isn't about buzzwords or about wizbang marketing. It's about providing modular solutions to some of the most challenging problems. They've been there to provide HW and SW to those wishing to work on the cutting edge. In 1988 they were selling 3D workstations. In 1991 folks were doing crazy 3D and video mixing. Today their hardware can be used to drive gobs of displays and to shuffle huge amounts of data. Sure, the desktop PC in 2007 will be able to do the same thing. By then, PCs will be able to drive gobs of high end gfx subsystems, and even a cheap graphics card won't sneeze at several GB of textures loading and unloading every second... but until then, for those that need this TODAY, there's SiliconGraphics.

Let's hope SGI is here tomorrow to show us even more cool things.