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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 89.27

+1.6%

Nov 25 3:59 PM EST

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To: Jerry Whlan who wrote (1503)	5/25/1997 10:27:00 AM
From: Jeff Maresh	of 14451

Sorry Jerry - I don't share your view of 64-bit OS's. I work with Oracle databases on a daily basis and the 4 GB limit imposed by 32-bit is becoming quite a limiting factor with many of my customers. 4 GB is not a lot of memory for even moderate sized Oracle apps. Companies that have been using Sun and HP have been buying DEC Alphas to get 64-bits. Oracle is a memory hog and it is just going to get worse. >64-bit OS's are really irrelevant except for two applications. Huge databases where >you need to have more than 4 gig of physical RAM before it matters ... SGI is now specifically targeting the commercial server market and systems are either going to be used for big databases or servers for internet commerce. Except for small apps, they will need more than 4 GB of memory. As for your comment about 9 out 10 systems not needing 4GB of RAM, it's probably true. But its the 1 $500K - $2M system that compares with the 9 $15K systems! There is a lot of money to be made on the high end with the expansion of internet commerce and migration away from main frames. If you don't believe me, look at high end sales by IBM, HWP, and DEC. Besides DEC giving away systems, IBM and HWP are making good money. >As SGI is just now attempting to break into the commercial server market, it is a selling >point for the really big machines, but probably not for the majority of deals. >A 64-bit OS makes for marketing fodder, but at least nine times out of ten, it really >means nothing to the customer. Regards Jeff

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