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EE Times: SGI ditches Cray and NT operations, embraces Linux

Aug 21, 1999, 00:01 (3 Talkback[s])
(Other stories by Margaret Quan)

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"Silicon Graphics Inc. (SGI) took another giant step in its restructuring plan last week, as it remakes itself from a company that helped define computer graphics to one focused on building Internet servers increasingly based on the Linux operating system and Intel processors."

"SGI chairman and chief executive officer Richard E. Belluzzo announced the company will spin off its Cray supercomputer division, its Windows NT workstation business and a key graphics-chip design team. SGI will create a new group devoted to broadband Internet servers, focus on the Linux open-source OS and seek out partnerships in low-end and high-end systems. SGI will continue to introduce new MIPS processors to the year 2002, as previously planned."

"Belluzzo admitted that SGI's NT sales fell short of revenue predictions and said the company sees more opportunity in the Linux market than in NT. He called Linux the 'next business-model change in the systems business.' "

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