SGI Acquires Linux Networx Assets, LNXI Dead?

anzha writes "It seems that that Linux Networx, the pioneering Linux supercomputing company, has gone belly up. SGI announced that it has bought the core assets of LNXI. Furthermore, the rumors are that the doors were locked and employees were just given their paychecks. This analysis, on the other hand, claims that SGI has 'made employment offers to many LNXI engineers.' It's unclear what kind of support will be extended to customers of LNXI's Clusterworx Advanced products. What does this mean for the future of Linux supercomputing?"

Comments

What?

[xzvf]

Weak company buys weaker company just to shut it down? Am I missing something? What percentage of the super computing market does SGI and Linux Networx have now? With the top 500 dominated by Linux systems I think Linux based super computing is in good shape. Sure customers that took a chance on Linux Networx MAY be screwed, but only because SGI isn't in a strong position to be around much longer. Someone who cares should look into the deal and the involvement of any LBO firms. Smells kind of SCOish.

Re:Belly Up?

[eldavojohn]

Since SGI hasn't turned a profit in forever and usually loses about $100M a year ... False. Their net income for 2006 was -$146.19 Million while their net income for 2007 was $222.61 Million. You may have been correct but at least in 2007 it looked like they have turned things around.