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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 91.87+1.8%Dec 5 3:59 PM EST
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To: Shibumi who wrote (1364)5/10/1997 6:09:00 AM
From: Michael I. Gold   of 14451
 
<< At the same time, I don't understand the market segments you are referring to with respect to PC/NT versus SGI competition. Anecdotal evidence (including that of a company I chair which does visualization engineering work) is that for a growing number of applications, PC/NT with something like SoftImage is a much more cost-effective solution on a TCO (Total Cost of Ownership) basis due primarily to software availability and prices and service and component prices. I'd love to understand what I'm missing here -- so if you have any data, even antecdotal data, please let me know.>>

This is definitely anecdotal, but I heard from a SoftImage employee that SI sales on NT were a money loser for Microsoft, and their revenue continues to come from their SGI sales. So I guess the message here is that SGI continues to do well in these markets because the NT boxes, while offering a cheaper base price, are still not powerful enough to meet the demands of power users. And, when you build a high end NT system, its no longer cost effective compared with an integrated solution like O2. Finally, nothing in the PC space can touch the power of the Octane, and this class of end user is rather power hungry.

The promise of "port to NT and sales will explode" hasn't panned out for a number of vendors because the hardware and OS services simply aren't compelling.
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