back to article Silicon Graphics goes titsup (again)

Silicon Graphics Inc. (SGI), the perma-struggling workstation-turned-server-maker, filed for bankruptcy protection today, and was immediately bought by Rackable Systems for $25m cash. Rackable has signed to take on of SGI liabilities. The deal is expected to complete in 60 days. The combined company will target the hyper- …


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  1. Kevin Campbell

    How the (once) mighty have fallen...

    ... again.

    About six years ago, when closing one of our smaller R&D facilities, I stumbled upon two small SGI workstations and one big one. At the time, I thought "Hey, cool!" Now, not so much.

  2. This post has been deleted by its author

  3. Andus McCoatover

    synergies, again

    Nokia Siemens Networks used it. Then others. Sun/IBM next, maybe? Certainly not Nortel, there's no 'synergy' left.

    Of course it's no more than a euphamism for P45/pink Slip/whatever.

  4. Sridhar Ayengar


    I'll say it again, WTF!?

  5. Anonymous Coward
    Anonymous Coward

    I remember ...

    ...years ago, back in the mid 90's, SG had a 'flagship' HQ in Soho (just across the road from Macca's office as it happens). I went in there, just to ask about courses and was treated to a tour around the building and even allowed to try out a workstation in the classroom. For me, it was an amazing thing to be permitted to use those wonderful machines, albeit I knew nothing then about how to use 3DSMax - just the sheer thrill of getting my hands on what was at the time 'top-of-the-range' graphical computing power was a real privilege. The SG instructor was very kind (he must has guessed I was in no position to pay out for an expensive course), and spent about an hour or so just running through a few basic tutorials and discussing the computers and the software. Happy days.

  6. Lars Silver badge

    Not enough to be good

    you need size too.

  7. Anonymous Coward

    ...Looks at Desk Calendar...


  8. Anthony Chambers
    Thumb Down

    Not a Reg April Fools Joke

    Unless, SGI and Rackable are playing it on us all.

    I own a few SGI systems, including Octane2 workstations and Origin200 servers, and they're great kit, but SGI rested on their laurels for too long

  9. MinionZero

    Thats one way to make lots of money.

    Huh? ... hmm.. sounds suspicious. After SGI was saved, its share price jumped at one point to just over 30 times its low point. If someone bought at that low point then sold out before this titsup they would have made a fortune. I'm wondering if that was the plan all along.

    Unless this is an April Fools Joke ... In which case, I'm hook, line, sinker and fishing trawler caught out by it. :)

    ... in which case, I'll get my coat (to hide my shame). :)

  10. Anonymous Coward
    Anonymous Coward

    25 Mill?

    Sad, really, when you think of the Jurassic Park SGI Farm...

  11. Donald Becker

    Just the assest, not the debt

    Hmmm, my reading of the filing is that RACK is buying only the domestics assets, likely including the brand name, and the intact international operations. It doesn't appear that they are taking over the obligations.

    The senior debt holders have first dibs on the $25M and remaining cash. Typically a little is set aside for other creditors -- common so that they accept a few cents on the dollar rather than cost legal fees all around, leaving everyone with zero.

    Creditors have 60 days to file with the court. At the 60 day point the already-written plan will likely be rubber-stamped by the court. SGI has already been shopped around, and the filing attorneys probably have fully documented that this is the best deal they could get. A "white knight" could still show up, but they would have to ride in from an alternate financial universe.

    It's not in anyones interest that this drags on. SGI has needed frequent cash infusions to continue operating. Even if Morgan Stanley had the desire to continue this, they no longer have the cash to do so.

  12. Anonymous Coward

    SGI goes tits up

    and no one notices. SGI hasn't been relevant for several years now, unfortunately.

  13. Pony Tail
    Dead Vulture

    Another Itanium alliance member quits!!!!! err more like it dies

    First Unisys now SGI. The Tukwila 12month delay will cause others to dump it. The volumes just not support having an Itanium system unless you are HP.

    Looks like Itanium will be nothing more than an HP-UX PA-RISC replacement.

    Rick Beluzzo...why did you force SGI to move to Itanium? If you look at the critical decision that sunk SGI it was hiring the HP Itanium fanboy.

  14. Anonymous Coward
    Paris Hilton

    Real-time raytracing

    Surely the name must be worth something to a company that makes graphics cards? Shirley? I can see someone like Asus or someone buying up the SGI name and brand for e.g. $1 just for the honour of punting a boutique SILICON GRAPHICS EN9600GT-S RTX+ Asph Di ALPHA MAX SPEC T* graphics card for a slight price premium. The Silicon Graphics name has a certain amount of cachet with elderly people like myself who remember the early 1990s.

  15. Mike Richards Silver badge

    I blame it all on...

    ...the change in logo.

    SGI used to have a fabulous 'cube' logo:

    then they went all swoopy, touchy-feely and family friendly and the business imploded. Don't blame the hardware, don't blame the software - blame the strategy-oriented synergetic experts.

  16. Francis Vaughan

    Re: I blame it all on...

    The cube logo is called "the bug" and it is back on some of the proper high end gear. Last time we bought some of their kit I insisted that the rack come with a bug logo :-)

    However the comment is spot on. It was at the time that they changed their name from Silicon Graphics to SGI and brought in the stupid "sgi" logo that the company lost its way. They were right royally rogered by Microsoft over both the failed Intel based workstations (for which Microsoft never delivered the prommised support) and the Farenheight project was simply a great way for MS to delay OpenGL from competing with DirectX. Once the dust settled after these debacles SGI were suddenly behind technically, and never really got the momentum back.

    Of course selling the E10000 to Sun was probably the single most stupid thing they ever did. They should have taken the system out to the back of the building and had it, and its designers, shot.

  17. al
    Paris Hilton

    what about half a billion in debt ?

    So basically SGI's cost was 25+500 mil USD to Rach'ble?

    Paris, coz only she goes down faster.

  18. Pony Tail

    How is that $10B Itanium alliance investment going?

    they really should put this story in the news section

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