SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 92.00-0.1%Nov 12 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Edward Smyth who wrote (4864)5/14/1998 12:25:00 PM
From: Patrick Gainer  Read Replies (3) of 14451
 
SGI bought Cray because the SGI senior execs were
seduced by the "sexiness" of high end scientific
computing. As a business decision, it was a stupid one.
Cray was part of a market which was not growing. The
scientific market as a whole is but a mote in the eye
of commercial computing. Cray itself was shrinking,
being beaten in part by SGI and the trend towards
"killer micros".

The SGI execs used as part of their
justification, the assertion that "if we hadn't bought
Cray then Sun would have". Can you imagine anything
more assinine? Sun has always been focussed on
commercial computing because that was where the real
money was. SGI had guys like McCracken saying things
like "we don't want to sell our stuff to banks or
insurance companies. Banks and insurance companies are
boring!" McCracken did and said things which, for a CEO,
should be criminal. He was that out of it.

To make matters worse, Cray's technology was
not generally transferable to the commercial arena.
Even the "Craylink" architecture used as the interconnect
on the Origin 2000 systems had nothing, zilch, zero, to
do with Cray. All the Origin technology was done at SGI
and the name was chosen to cash in on the value of the
Cray name.

SGI should divest itself of Cray as quickly as it can.

Pat
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News