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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 93.75-0.6%Dec 12 9:30 AM EST

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To: Paul Jamerson who wrote (366)11/14/1996 6:17:00 AM
From: Alexis Cousein   of 14451
 
As per your `processor' message...

>Perhaps SGI should begin to look at jump on the Wintel bandwagon and
>begin to use Intel's PPro (P7 when available) processors in their
>lowend system

Why on earth would SGi do that? The R10K is available in even the low-end O2, and it's more powerful than a PPro even in its O2 incarnation. Plus we design *systems*, not processors. Comparisons between `raw numbers' and application benchmarks have always revealed to me that is a very important distinction...

>he could scale back MTI and use MTI to design very high end (cost is
>less of an factor) processors.

Again, you're unfamiliar with the MIPs model. MIPS designs hi-end processors, then migrates them to appliances in volume to make money. There's not much money to be made solely in the extreme hi-end (as far as processors go), unless you extend their lifespan by migrating them down the ladder: a hi-end processor only has a fairly short lifespan, as it doesn't remain hi-end forever ;).

We don't want to become another vendor for which microprocessor development is a `necessary evil' for being able to produce workstations. We want to make money on them.

>Unfortunately, this has not translated into growth beyond their
>present level.

When I joined SGI in 1993, it was a 1.1e9 $ company. Now it's a 2.9e9 $ company. Looks like some growth to me, and I'm pretty confident it won't stop. I've heard stories predicting the demise of SGI since well before I joined; the last two fusses were `the MIPS merger won't work', and `Symmetric Multiprocessing is a joke and will never catch on' ;). Now it's `PCs will take over the world'.
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