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To: Thomas A Watson who wrote (6338)8/1/1999 4:28:00 AM
From: Dale Stempson  Respond to of 14451
 
SGI shipping first Intel-based servers Aug. 2
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SGI Joins 'Intel Inside' Crowd
(07/30/99, 9:03 a.m. ET)
By Jan Stafford, VARBusiness

The "Intel inside" juggernaut continues, as Silicon Graphics Inc. begins shipping its first Intel-based servers on Aug. 2.

The first SGI 1400 models out of the chute will use Intel IA-32 processors and support Linux and Windows NT operating systems. These new one-to-four processor servers will be welcomed by SGI's existing customers, analysts said. Winning new converts in the crowded Intel-based server market, however, will be a challenge for SGI.

The line kills two birds with one stone for the company. Support for Linux and Windows NT brings the scores of killer apps built for them into SGI's VAR arsenal. The entry into the IA-32 arena also puts SGI on the migration path for the long-awaited Intel IA-64 chip. SGI's 64-bit operating system, IRIX, and its MIPS RISC chips are used in its midrange to high-end Origin 2000 servers.

"Our customers have told us that they want a low-end offering and standards-based systems, including Windows NT and Linux," said Greg Goelz, SGI vice president of worldwide channel sales and marketing. "The SGI 1400 will help us address the demand for lower price points and NT and Linux applications."

Linux is a good fit for SGI's traditional base of video and graphics users, said Kimball Brown, an analyst at Dataquest.

But Brown said he questions SGI's chances for success in the general commercial market.

"Selling Intel-based servers is a tough market for SGI to take on, but their customers are probably asking for it," he said.

The SGI 1400L Linux-based server has a starting price of $7,935, and the SGI 1400M starts at $8,945.

Ref: techweb.com
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Regards - Dale



To: Thomas A Watson who wrote (6338)8/1/1999 2:10:00 PM
From: Steven C. Vartan  Read Replies (1) | Respond to of 14451
 
I have no tech background but it seems to me that there is a very aggressive trend in the industry to be the low cost supplier and linux fits within that goal. The key for companies is to be low cost but still have enough margin so they don't end up with profitless revenues like CPQ.