“When visual workstations and technical servers maker Silicon
Graphics (NYSE: SGI) sent investors hearts a-flutter earlier this
year with its decision to embrace Wintel technology and enter into
the crowded Windows NT space, a fellow Fool wondered whether the
company’s proprietary enhancements to NT would provide the
competitive advantage needed to restore SGI to its former place as
a darling of the U.S. computer industry. Today, SGI answered that
question with a resounding “No.”
“In a flurry of press releases this morning, SGI said it is
shaking up its business yet again in an effort to find its proper
place in the computing environment of the future. And apparently,
Windows NT does not fit into the picture anymore.”
“In connection with the reorganization of the two business units
and others, some 1,000 to 1,500 jobs will be eliminated and an
undetermined number of employees will depart to staff the new joint
ventures and alliances in the works.
“The remaining 8,000 or so SGI employees will concentrate
their efforts on broadband Internet computing opportunities and
mid-range servers running the Linux operating system.”