Monday, February 09, 2009

Yet More SGI Trouble


If there is one company out there that embodies "former glory", it just has to be Silicon Graphics Incorporated. Once one of the most well-respected high-performance computer and software makers of the world, it is now a mere shadow of its former self. The most recent set of financial results from the company do not bode well for the already troubled company.

SGI made most of its name back when it was the primary supplier of graphics hardware for the Hollywood visual effects industry. The company supplied this demanding industry with heavy duty graphics workstations, as well as high-performance visualisation systems. SGI's penetration in this market became clear when the brand started to appear in high-profile movies, with the most memorable being the "This is a UNIX system, I know this." case of Jurassic Park.

However, with the rise of powerful graphics hardware in cheap, ordinary computers, as well as the emergence of Linux and the advent of the Windows/Linux/Mac OS X port of Maya, led to the company slowly being pushed out of the visual effects industry, being replaced by the aforementioned cheaper options. Instead, the company focussed on government work, the scientific market and high-end servers and supercomputers.

There were several other confounding factors that have helped in SGI's decline. The company prematurely announced a switch from MIPS to Itanium in 1998, after which it quickly became clear that Intel could not deliver the Itanium on time; to make matters worse, Itanium would not reach the speeds as promised by Intel. This left SGI with a set of outdated MIPS-based products, and they quickly had to release new models with faster processors to remain competitive. The switch to Itanium was continued later on, and at one point, the SGI Altix formed the base of the Columbia supercomputer, which was built out of 20 Altix 3000 systems with 512 Itanium processors each. At the time, this was by far the faster supercomputer in the world.

In 2006 the company announced the end of its legendary MIPS product line, as well as the end of the IRIX operating system, preferring Linux instead, all as part of a plan to bring the company back to positive figures. Not long after, the company emerged from bankruptcy, and things started to look up again. The company even re-entered the famed visualisation market with the SGI Virtu running Linux or Windows Compute Cluster.

However, due to the economic downturn, the company has made a few steps back during the last quarter. I won't bore you with the figures, but suffice to say it's not going well. The company is hoping to get government support, rooting for a slice of the stimulus pie president Obama and the US Congress are working on right now.


If they need some of the stimulus package to survive, they're probably toast. Then again, we've been saying that for a loooooooooooooooong time. From our POV, they're the undead HPC maker.

They. Just. Won't. Die.

OTOH, some of the things they have on their HPC roadmap - if they can survive that long - are damned fascinating if they can pull them off.

8 comments:

Dicing with Dragons said...

Well, it was bound to still not happen yet.

It seems sort of inevitable that it won't, almost.

Almost like they've got money coming in they're not allowed to talk about...

(Meh. Still want an Onyx or Tezro.)

Will Baird said...

An ONYX?! oy.

They are required by law to report the money flow for tax purposes. If it were a classified site, they'd just call it an undisclosed governmental customer. That's what Cray does. Frequently.

Dicing with Dragons said...

Yes, Onyx! Heat your home and run up an insanely huge electric bill!

Onyx. The Ultimate driving machine.*


(* Onyx does not like to be turned off, unairconditioned, or anthropomorphized.)

Will Baird said...

And when did they last sell an Onyx?!

I remember those from ... the mid to early 90s.

Sheesh, Scott! At least break the 00 barrier.

Dicing with Dragons said...

Hey, I used to have a Crimson in my rented house in Tacoma.

Back then, space was less an issue.

Dicing with Dragons said...

Fine. Even though it's not as purple:

http://www.sgi.com/products/remarketed/onyx350/

(And I suspect it would hurt me to get it up the stairs.)

Will Baird said...

*head explodes*

At least consider a Vue then?

Oh, bit of trivia. Back in Cray's hey-day of the mid to late 1980s up to the Cold War's Implosion, Cray was considering buying SGI. When SGI did the reverse in the 1990s, it was a disaster. I have to wonder what would have happened had Cray gone and done it?

Dicing with Dragons said...

Cray: Intriguing! Don't know. I gathered (pure hearsay, mind) that the corporate cultures didn't mesh well between SGI and Cray. So things might not have turned out all that different.

Vue looks cool, but just for a personal toy (which also happens to be rather incredibly useful), I still want some sort of nice, highest of the high-end last-of-it's (relative)-line (say last iteration Onyx, Onyx2, or Onyx300) box. (Or a Tezro. Hey, I'm not picky.)

Partly sentiment, admittedly, drives this.