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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 93.20+1.6%Dec 1 3:59 PM EST
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To: James Tarifa who wrote (1477)5/21/1997 2:56:00 PM
From: bruce hill   of 14451
 
James,

SGI went after Cray for the Supercomputer business. The
SPARC-based server biz was probably less than 5% of the deal.
I was a part of that 5%. SGI had 3 choices with the SPARC
(Business Systems) group - kill it, absorb it, or sell it.

Thankfully they did the last one. I now am happily working for
Sun doing the same stuff with the same people at the same location.
SGI didn't want to retrofit our Starfire machine with MIPS
processors and IRIX. If they killed our group, they would have
had to pay out millions in severance. Instead they sold it
for a song to Sun not really realizing what exactly they were giving
them. It was good for SGI, since it relieved them of the liability
for supporting the CS6400 and they got out of any severance
payouts.

Cray never knew how to market and sell the servers. We had like
maybe a dozen sales people selling the CS6400. They were
used to selling the big iron, where people come to you.
With Sun, we've got like 2000 people selling the Starfire. We've
sold more in the first 2 weeks than we did CS6400's during its
2 year life span.

I'm in at about 20 (thanks to the Cray stock plan). When
SGI moves above 20, I'm outta here!

Bruce

BTW: My first post too!
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