Silicon Graphics Being Sold To Rackable For Peanuts

20 thoughts on “Silicon Graphics Being Sold To Rackable For Peanuts”

  1. I seem to recall around the time SGI was starting to release windows machines ( around ’97-’98 IIRC ) they were suffering a brain drain of 3D engineers. I believe many ended up at Nvida, which then produced the first geforce chip in ’99.

  2. Looks like a smart move on Rackable’s part. Getting >$350MM/yr in sales. If they can replace SGI’s CoGS with Rackable HW and elim a great deal of SG&A, then they’ll probably change the profitability profile of the deal dramatically. Plus, gives them a big position in HPC and potentially Cloud.

      1. They’re actually not going to assume *all* of the debt. Saw a note somewhere that they’re only picking up a portion. Not sure how that works when you’re giving equity value…

  3. I remember when the first workstations arrived in England during the early 80s. Then the main players were HP, SUN, SGI and DEC. At the time I was working for BP Research and remember the delight of the chemical engineers when they started to develop graphical applications to run on SGI workstations. Given the status SGI had at the time it’s hard to believe that the company is no more.

  4. Hmm, I would have thought that Sun, or even Stratus Technologies would have thought of acquiring them, for what it’s worth. Although I don’t know what redeeming qualities they have, these days (other than their brand, a legacy, and a few HPC products)…

  5. End of an era. A touch sad, actually. I started my first company in 1995 with $75k in SGI equipment. Btw, Om – my understanding is that they are walking away from most of the ~$500M+ in debt.

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