“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.’ “