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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 87.31+3.2%Nov 21 9:30 AM EST

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To: David Mosley who wrote (443)11/27/1996 5:15:00 PM
From: Michael S. Mikowski   of 14451
 
David, did not say people buy soley on merits. I stated that, while other factors are important, the product itself is critical to the success of a company. The products' merits should, therefore, be discussed here in detail so that the technically savy can appraise their merits.

A great product is still the best, most cost effective marketing tool. The marketing courses I've taken agree with this premise. The best way to convince the user that a machine is the best for their purpose is to demonstrate a machine that *is* best for their purpose. This is perhaps more important to the support people than to the individual user, since it affects their sense of self-worth and loyalty. A bad product destroys some of those "intangibles" that you mentioned in your note, such as "percieved value."

On another subject, the BE Inc. OS has recently been licensed to PowerComputing. Apple is rumored to be interested in this OS as a foundation for its next-generation OS. Recent specs look very promising, as the BE OS appears to outperform Windows NT in many areas (see www.be.com). Are there any rumors surrounding SGI's interest in this OS? Any thoughts on this impacting (excuse the pun) low-end SGI machines?
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