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

To: John M. Zulauf who wrote (3231)	10/27/1997 7:29:00 PM
From: GR	Respond to of 14451

i'm a tech. analyst.i don't understand technology companies very well/i was just mentioning the rumor-first reported in san francisco examiner,and heard by some in the brokerage business.i didn;t think trv would buy sb also..but... .I do not have any privilidged info or anything like that.However it would appear that ibm and sgi are talking-about what-who knows?

To: John M. Zulauf who wrote (3231)	10/27/1997 7:44:00 PM
From: vincent bilotta	Read Replies (1) \| Respond to of 14451

John, as one of the great champions of SGI technology, wouldn't you agree that there are many tech treasures that IBM could utilise across the market? besides giving every product they have advanced graphics and I/O capability, it would give them microprocessor designs that would be worthy of their advanced foundries. it would give them an NT box so far ahead of Intergraph or anyone else the world would drool. go read SGI's 10K about the anticipated costs and problems of SGI rolling this out next summer. IBM could doit in stride. it would put IBM in as market leader in the scientific markets where SGI leads. it could give them control of graphics hardware and software through licensing if they choose. they have the force to make big money from all that SGI has developed. no other company could take advantage of what SGI has better than IBM. btw, i found a market segment chart at:http://www.sgi.com/Headlines/investor/marketsegments.html but it's not too recent. is there a later version of this? this chart shows Financial/database/server as 7% for FY96' has this segment grown in importance for SGI? if Lauer and his crew are booted this week, how long will it take to build a sales/marketing org that can sell into that market? vincent

To: John M. Zulauf who wrote (3231)	10/27/1997 8:18:00 PM
From: vincent bilotta	Respond to of 14451

John, and most important, with the CPD/Paradigm/MIPS project, it would put IBM in total control of GameMachines. vincent

To: John M. Zulauf who wrote (3231)	10/27/1997 10:49:00 PM
From: Dr. Arvind	Read Replies (4) \| Respond to of 14451

If SGI is for sale, IBM wants to grab SGI as soon as possible. This fadding graphics and computing powerhouse, can boost IBM's power in many areas, not just graphics. price tag: $30 time table: very soon

To: John M. Zulauf who wrote (3231)	10/28/1997 5:14:00 PM
From: Jojo Mosko	Read Replies (1) \| Respond to of 14451

<<Why would IBM want SGI>> John, I actually see perfect sense in the synergies between IBM and SGI: What SGI has that IBM has not: 1) An amazingly scalable OS and systems. the semi clustered IBM SP/2 doesn't come anywhere close to the Origin. 2) A much better CPU and compiler technology: compare SPECint and SPECfp of the PowerPC and MIPS for the same frequency, consider that R12000 is out and at 300MHz will be outperforming the 500MHz Alpha in SPECint and even more dramatically in SPECfp. 3) Much better graphics subsystems 4) Supercomputing and technical market dominance What IBM has and SGI has not: 1) Strong marketing organization (especially in the enterprise) and a huge installed base and connections in critical (fortune 500) MIS departments. 2) The most advanced semiconductor process in the world 3) Deep pockets. The ability to acquire SGI :-) What worries me is just this: IBM is known to be bureaucratic beyond belief, SGI is diametrically opposed in spirit and culture. If IBM can buy SGI without illing its spirit (and have the best people leave) then I'd say it is a big win for both companies.