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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 90.81

-2.0%

Dec 3 3:59 PM EST

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To: GR who wrote (3229)	10/27/1997 6:58:00 PM
From: John M. Zulauf	Read Replies (5) of 14451

I don't see the sense in this... > the rumor is ibm is/will be acquring them on thursday. Why would IBM want SGI? What would it add for them? They have, apparently by choice, decided NOT to fight it out in the highend graphics workstation market. They have at least 1 massively parallel, scalable architecture. I haven't heard of the new IBM mainframes running out of steam in the enterprise space. They have their own CPU design house. The already have NC and Java projects and experience. The already have PC-NT products. They have already at least one each of the software groups (compilers, O/S, web, etc.) within SGI (except probably Alias\|Wavefront). The only reason IBM would possibly be a prospective buyer is that they do understand that enterprise problems are often bandwidth dominated, and certainly SGI has unmatched bandwidth scalability in the UNIX server space -- but this is something they already know well and have in place in their mainframe product line. What exactly would SGI give IBM? One good thing to do with rumours is first ask, "why would this make sense?" I don't see it. Anybody else? john Hmmm.

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