Feeds

SGI to emerge from bankruptcy cocoon

Like a crippled butterfly

Build a business case: developing custom apps

SGI is ready to become emergent all over again. A judge has okayed the company's reorganization plan, paving the way for it to come out of bankruptcy protection in October.

The "new" SGI will be a trimmed down version of its former self with just 1,600 staff. In addition, it will have a new board of directors to complement new CEO Dennis McKenna. With so much newness on its side, SGI expects to reach profitability in fiscal 2007.

But the one-time visualization darling still faces plenty of old challenges. It has to prove that its Itanium server line can deliver meaningful sales – a quest that benefits from Intel's recent release of a dual-core Itanic processor. In addition, SGI has to get a fresh Xeon-based server line moving.

SGI's Xeon-only stance remains curious given trends in the server market. The company wants to expand beyond its engineering and scientific computing roots to tempt more mainstream customers with memory-rich boxes.

But by ignoring Opteron, SGI limits its options. AMD has assembled an impressive group of component partners willing to make accelerators and networking gear that slot into Opteron-based motherboards. Such add-ons could be very attractive to the horsepower hungry customers SGI wants to tempt.

Rivals HP, IBM, Sun Microsystems and Dell all seem aware of Opteron's benefits. But we're sure SGI knows what it's doing.

"This is a great day for SGI," McKenna said. "I want to thank our customers, vendors, and employees for supporting the company through this challenging period."

Morgan Stanley and General Electric Capital have chipped in $115m to get SGI through its bankruptcy emergence machinations. ®

Build a business case: developing custom apps

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Microsoft says 'weird things' can happen during Windows Server 2003 migrations
Fix coming for bug that makes Kerberos croak when you run two domain controllers
Cisco says network virtualisation won't pay off everywhere
Another sign of strain in the Borg/VMware relationship?
VVOL update: Are any vendors NOT leaping into bed with VMware?
It's not yet been released but everyone thinks it's the dog's danglies
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.