Feeds

Gutted SGI 'blasts out' of, er, bankruptcy

Fewer staff, fewer debts, same problems

Build a business case: developing custom apps

Grumpy naysayers will argue that SGI shouldn't have bothered. It should have put the purple logos away, handed its old contracts to IBM or Sun Microsystems and called it a day. Never mind this bankruptcy emerging business.

SGI's public relations team did its best yesterday to counter such server cynicism with one of the catchier headlines we've ever seen on a bankruptcy-related financial statement. "SGI Blasts Out of Chapter 11 Lean, Focused and Ready for Growth," the flacks wrote.

Yee-haw!

To the "New SGI's" point, the company is in fact leaner than before. It now employs just 1,600 people – well down from the more than 10,000 workers it once paid. The server maker also has less cash to play with than in the glory days. It has come out of bankruptcy with $115m in financing.

"Today we debut the New SGI, an efficient and fully recapitalised company armed with a new, market-centric business model and empowered by a rekindled commitment to solving the problems of customers in a targeted range of markets," SGI CEO Dennis McKenna said.

Of course, the new SGI looks a whole lot like the old SGI from a product standpoint. The company still relies on Itanium-based systems for its most lucrative sales. The new SGI, however, has placed more emphasis on Xeon-based servers, while ignoring Opteron kit.

The new SGI also wants to go after a broader customer set than the visualisation and high performance computing crowd that it overcharged for years.

Beyond a few bits of proprietary technology that failed to pay the bills in the past, SGI does not seem to have any special sauce to separate it from other hardware makers. So even with a blasting, lean SGI faces some serious challenges. ®

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.