Archive for Silicon Graphics

Silicon Graphics Goes Bankrupt For The Second Time… Then It Gets Bought For $25 Million

Posted in Commentary with tags on April 1, 2009 by itnerd

Silicon Graphics who is best known for high performance workstations used by animators, and servers that almost nobody uses, filed for bankruptcy protection today. For those of you keeping score, this was the second time that they’ve gone bankrupt. The first was in May of 2006 and the resulting reorg apparently didn’t help much as they’ve been consistently bleeding cash since then. Now here’s the plot twist. According to this press release, they’ve been bought for $25 million by Rackable Systems:

The combined businesses will provide customers with market leading hardware and software technology within large-scale x86 cluster computing, HPC, Internet, Cloud Computing, large-scale data storage environments and visualization platforms across many verticals and geographies. This combination is also expected to result in a stronger global services organization; reaching commercial, government and scientific sectors on a worldwide basis.

Rackable is also going to take on all of SGI’s liabilities. The deal is expected to complete in 60 days.

All I have to say is good luck with that as this market is stacked with players who come to mind much faster than Silicon Graphics. I personally had forgotten that they had existed since my interactions with them as a workstation manufacturer in 2001. But perhaps under new ownership they might be able to flourish and prove me wrong.