SGI: End of an Era

[mpjesse]

SGI (Silicon Graphics Incorporated) filed for Chapter 11 bankruptcy today. While this doesn't necessarily mean the end of SGI, it shows just how vulnerable one time big names are to companies like Dell, Apple, and HP.

That and the fact that it doesn't take a huge workstation or server to render 3D animated movies anymore.

I predict SGI will be bought or sold off. Probably to Dreamworks or Pixar/Disney.

 

[nobly]

Yeah, I'm not surprised after they stopped selling low and mid range products. Last I heard the cheapest thing they sold was over 10k or something.

But its sad, SGI did alot... Hopefully they can come back with some great new innovations of some sort.

 

[Action_Man]

Damn, I liked SGI. Hopefully someone good buys them.

 

[TheGreatGrapeApe]

SGI (Silicon Graphics Incorporated) ..

I predict SGI will be bought or sold off. Probably to Dreamworks or Pixar/Disney.

Expect ATi and nV to bid for them, nV's already expressed interestin SGI in the past, and Ati may want to add to theit BitBoys acquisition (not that they're related sector-wise just as an aquisition) as they've been talking about accelerating their pruchases. Both of them likely see alot of patents and R&D possibilities with the pieces left over from SGI, also expect the former SGI emplyees to soon be on their payrolls.

I doubt the production companies would have any interest in SGI, heck most of them started moving to mega Opteron platforms or large scale Dell Xeons a year or two ago which is precisely why SGI was in trouble. Most actually tend to rent server farms en masse even if it's more expensive than buying them outright simply because for accounting purposes it can be better written down.

 

[mpjesse]

Though it wouldn't surprise me if ATI or nVidia bought them, I don't see what value it would be to them. At this point, the only thing SGI has going for them is their visualization software. Neither ATI or nVidia have decent competing products, so I could see that happening...

But is SGI worth the price? I don't see them selling for under $300 million. And as far as hardware patents and technologies go, it's all dried up for SGI these days.

I wonder if ATI or nVidia have any technology licensing deals? If so... it might be worth their while to buy them if the license costs are high...

 

[TheGreatGrapeApe]

Though it wouldn't surprise me if ATI or nVidia bought them, I don't see what value it would be to them.

I'm not talking about buying them to save them, I'm talking about picking their bones, like a fire sale.

But is SGI worth the price? I don't see them selling for under $300 million. And as far as hardware patents and technologies go, it's all dried up for SGI these days.

Wouldn't be worth the whole thing, but if they sold of parts, you'd easily see nV and Ati ponying up 10s of millions for the right patent bundles.

I wonder if ATI or nVidia have any technology licensing deals? If so... it might be worth their while to buy them if the license costs are high...

Well and that's the point, even if it isn't something they currently license is it something they might be able to use to better their products, or even leverage their comeptition (is there an underlying patent that could screw over the other guy?)

 

[mpjesse]

The Register wrote a great article about the rise and fall of SGI.

http://www.theregister.co.uk/2006/05/09/sgi_chapter11_analysis/

Good stuff. Talks about how SGI sold a ton of its patents to M$ back in 2002. For Vista maybe? Or maybe it was for DX7/8. Not sure.

 

[Multiplectic]

It's a shame that such huge company can crash down like that... It's legacy will never be forgotten...
Just remember: Everytime you play Quake (or another OpenGL application), SGI is there, breathing just a little...

 

[mpjesse]

Or maybe the next time you watch Jurassic Park? SGI's machines created that...

 

[TheGreatGrapeApe]

The Register wrote a great article about the rise and fall of SGI.

http://www.theregister.co.uk/2006/05/09/sgi_chapter11_analysis/

Love the register, they have good IC news. Very VERY dry stuff though.

Good stuff. Talks about how SGI sold a ton of its patents to M$ back in 2002. For Vista maybe? Or maybe it was for DX7/8. Not sure.

Yeah I wonder, the feeling that you get from the link is that it was more for the Xbox, and then leveraging people away from OGL.

It's amazing how many companies could still be pulling in large cheques if they just produced 0 product and just defended their patents and licenced products.

 

[MarkG]

Weird. I thought SGI had gone bust long ago.

How are they going to run Jurassic Park now ?