Friday, May 12, 2006

Silicon Graphics files for bankruptcy

Once the leader in high end visualization, Silicon Graphics is now on its knees. Court approval for its bankrupcy status will keep SGI going for a while: "We are pleased with the approval of our 'first-day motions' by the Bankruptcy Court," said Dennis McKenna, chairman and chief executive officer. "This approval will enable SGI to operate globally and meet normal business obligations."

He describes plans to reconstruct the business having shed most of its debt in a deal that sees existing shareholders lose their remaining share value. But any remaining confidence in the long term adoption of SGI technology must now be gone, so it is hard to imagine him turning it around.

It's sad. Ten years ago I was given a tour of SGI offices in Switzerland by a friend and it seemed the greatest place work - superb offices, excited staff and everyone had the most amazing (for the time) SGI workstations on their desks.

But a decade is a long time in IT.


Anonymous said...

I remember a meeting where the SGI representative stated that if SGI lost an order they checked to see what criteria they failed on; if graphics was one of them they sacked the salesman. I didn't think 'Wow! What a powerful platform this must be' - my thought was that this was rather arrogant & inhumane. They got my sympathy back when they rescued Cray, and with OpenGL. It will be a shame if they go.

james said...

Hello,this is james.It's another harbinger of the end of the first major wave of computing companies in the Internet businessThings came to a head for SGI in early May when it was forced to file for bankruptcy protection in the US. While the company had not posted.