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

SGI still around?

[BWJones]

Other than its ability to run on cheap (price and often quality) hardware, I still don't understand SGI's movement to Linux. I guess that I am showing my ignorance here, but it seems to me that Apple and SGI are in similar situations right now in some respects. Both companies historically have relied on income from the hardware side of things while making a closed OS/hardware system that for each of their respective markets is very effective. The difference between Apple and SGI however is that SGI already has a UNIX OS with a GUI (however difficult it is to manage but VERY extensible and powerful), and Apple is developing UNIX with a GUI (easier to manage, more powerful in some respects, etc etc etc...). Both companies need major transitions to survive, but why Linux/Intel? IRIX is already mature, stable, fast, with great graphics capabilities and IO capabilities, so I ask again, why move to Linux and Intel?

Both companies obviously want to benefit from the open source paradigm while still remaining in business with proprietary OS's. (I am guessing here for SGI as I assume that they will make their OS on a proprietary linux model) The approach Apple is taking certainly makes sense to me by developing a UNIX OS that includes the opensource Darwin, but I am totally clueless as to what SGI is doing here. What makes Linux more attractive than simply continuing to develop IRIX and putting more effort into improving, simplifying some features, and pushing development for IRIX on perhaps less expensive hardware? (among other changes to their business model) Again it seems to me that SGI is making another crucial mistake here as the developers that have tapered off work for IRIX have not for the most part started developing for Linux (although I know of a few examples), primarily they have lost ground to Wintel. (thus
their misguided attempt at Wintel/SGI boxes I guess)

In short it appears that they are trying to make Linux/Intel into what they already have in IRIX/MIPS, only with cheaper hardware which seems awfully dangerous to me for both end users and the company.

I believe that by 2005 SGI will no longer be in the low to mid-range workstation market. This market will belong to perhaps Linux/Intel or OSX/PowerPC. Right now for what my maintenance contracts cost me for a single SGI Octane, I can purchase a new G4 WITH a 22in Cinema display YEARLY! This is not even talking about the $40k initial acquisition costs.

SGI will survive in the server market and high end visualization market if they are not acquired by someone else. After all SGI's market cap is only around 585 million last time I checked.