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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 91.54

-2.2%

Jan 14 3:59 PM EST

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To: Eli Lauris who wrote (998)	4/6/1997 9:30:00 AM
From: Bill Fischofer	of 14451

Re: Merced transition I don't think the transition will be as painful as you might think. For one thing, there will probably be a 5+ year period of overlap as both Merced and Pentium2 (or whatever it's called at the time) coexist. Second, INTC has promised to maintain full binary compatibility so all existing 32-bit aps should run fine on Merced. (Don't know what the story is for 16-bit aps, but I suspect they won't be a factor in the Merced timeframe.) Third, Merced will be pitched to the enterprise server marketplace. The real target that Merced is aiming at is IBM's aging System/390 family. When IBM abandoned its 64-bit plans for their mainframe they signed its death warrant and INTC intends to be the hangman. Merced-powered NT clusters will do the job.

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