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Technology Stocks : Silicon Graphics, Inc. (SGI)

SGI 90.70

+1.6%

Nov 26 3:59 PM EST

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To: Tim Mak who wrote (3811)	12/17/1997 8:31:00 PM
From: Jim Davison	Read Replies (2) of 14451

This announcement will strengthen SGI's position. I have been concerned earlier about splitting their support between two platforms or undermining their bottom-up hardware/software approach to system design -- but I think that this move helps remove the spectre of "becoming another Apple." SGI's road to success is to build bridges that make their platform and hardware universally acceptable, and right now this deal with Microsoft is the right move -- for both parties. Nothing would be gained adopting the "fortress" position. --JD

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