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Technology Stocks : Silicon Graphics, Inc. (SGI) -- Ignore unavailable to you. Want to Upgrade?

To: vincent bilotta who wrote (3164)	10/27/1997 1:02:00 PM
From: John M. Zulauf	Read Replies (1) \| Respond to of 14451

Johnz defends his pure and unadulterated speculation: NEC has supercomputing, PC, and appliance markets. SGI would fill the gap with servers and workstations, and add the MIPS semicondutor design team to boot -- and give them a US based sales/mfg team. In terms of tariffs, if you can't beat 'em buy 'em. Siemens Nixdorf for my money this is a technology companies that "gets it" regarding the future of computing. They have already have an established server product line which rivaled the last gen SGI's. They have MIPS based products and are a MIPS partner. I see them as possibly setting the standard for interactive digital video and broadband internet in Europe. Certainly the test deployments along these lines in the UK seem on target. However, they have nearly no US presence. To fight MS and Intel effectively, they desparately need one. Look for them to pick up a large stake in some non-MS only computer company (either in the NC or server marketplace) or enter into a very tight joint venture with a US company with a presence in the broadband/settop/NC/video server. Toshiba They buy instant entry into the high end of digital media. Combined with their consumer electronic and semi-business this helps them keep up with the "Jones-sans". Intel Intel got out of the supercomputer business, but owning a major stake in one -- and gently (hah!) pushing them into the IA-64 camp... Also, SGI is going to be a player in the video-on-demand server business and NT currently can't scale to serve that business. Intel needs another choice, unless of course HP has committed to moving their high-end server/super-computer line all to IA-64. In other words, Intel could use SGI as coffin nail for Sun. Thankfully, however, I am completely unburdened by fact in this instance, and speaking only private and unofficial opnion, john