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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 93.37

+2.0%

1:19 PM EST

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To: Jeff Maresh who wrote (2583)	9/7/1997 9:41:00 AM
From: Jim Davison	of 14451

SGI's change of heart on NT reminds me of that joke about the lawyer who says: "I can incontrovertably prove my client was not in the state at the time of the murder. In the event he was in the state -- I can prove it was self-defense!" I can't resist the worry that by adopting the NT OS, SGI has begun a self-destructive process of undermining its own core products. Will SGI now be responsible for developing graphics software that runs on two utterly different platforms? And how are the guys at MIPS going to like it when SGI is pouring money into other chip manufacturers? It looks to me like SGI is going to try to straddle two different worlds here, and that is going to make everything twice as hard. Still -- in general SGI has been pretty good at planning long-term business stratagy. I guess they have to go to where the business is, and the business has been moving over to NT for a while. I expect shareholders will be pleased at the news. --JD

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