Feeds

Gutted SGI 'blasts out' of, er, bankruptcy

Fewer staff, fewer debts, same problems

Internet Security Threat Report 2014

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. ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
Symantec backs out of Backup Exec: Plans to can appliance in Jan
Will still provide support to existing customers
VMware's tool to harden virtual networks: a spreadsheet
NSX security guide lands in intriguing format
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.