SGI in trouble, yet (yet) again? Biggest slide since '09

Open discussion on or around SGI; software/hardware related posts should go in the appropriate subforum.
Forum rules
Any posts concerning pirated software or offering to buy/sell/trade commercial software are subject to removal.
User avatar
sgifanatic
Posts: 554
Joined: Sun Jul 25, 2010 2:47 pm
Location: Texas

SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby sgifanatic » Sun May 20, 2012 10:03 am

Here we go again... what low-margin business could they possibly have now that they sell friggin' supercomputers!!! If they can't find margins even at this high end, then perhaps it's the management and corp strategy that is the issue.

Silicon Graphics stock falls

Silicon Graphics International, a maker of computer servers and storage, dropped for a third day after cutting its forecast for the year last week, as it shifts out of low-margin businesses and customers delayed orders as they wait for new products.

Silicon Graphics fell 58 cents, or 9.6 percent, to close at $5.48, its biggest decline since Thursday. That was the day after the Fremont company cut its forecast for the year, driving shares down 32 percent, the biggest one-day drop since the company was acquired by Rackable Systems in May 2009.

In the past six months, Silicon Graphics' chief executive officer and chief financial officer both resigned, and the company announced plans to restructure its European operations, including cutting about 25 percent of its European workforce.

Read more: http://www.sfgate.com/cgi-bin/article.c ... z1vQjU6iIi
--
:Octane2: :O2: :O2: :Indigo: :Indigo: :Indigo: :Fuel: :Indy: :Indy: :Indy: :Indigo2: :Indigo2IMP:

SAQ
Posts: 5772
Joined: Wed Jul 19, 2006 8:37 am
Location: Renton, WA

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby SAQ » Sun May 20, 2012 11:52 am

It's not the margin, it's the total net income, which is margin x sales (very roughly). Same issue that has bitten them in the past
"Brakes??? What Brakes???"

:Indigo: :Octane: :Indigo2: :Indigo2IMP: :Indy: :PI: :O3x0: :ChallengeL: :O2000R: (single-CM)

User avatar
sgifanatic
Posts: 554
Joined: Sun Jul 25, 2010 2:47 pm
Location: Texas

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby sgifanatic » Sun May 20, 2012 12:15 pm

SAQ wrote:It's not the margin, it's the total net income, which is margin x sales (very roughly). Same issue that has bitten them in the past


I understand. Their point is that they feel they have a margin issue and must get out of these low-margin deals in order to improve net-income. The assumption is that volume on these low-margin products/deals will not increase, therefore they are not worth pursuing for their overall net contribution. Their assumption about not being able to expect rapid volume ramp at that high end of the market may not be off. However, contribution margin is impacted by COGS, MDF disbursements, commissions, freight and other overhead. So, maybe that's where the problem is, not to mention OPEX. Trying to point to gross margins and accusing the market of not supporting perhaps an unrealistic target margin is just a very tired excuse they keep bringing out and parading every so often.
--
:Octane2: :O2: :O2: :Indigo: :Indigo: :Indigo: :Fuel: :Indy: :Indy: :Indy: :Indigo2: :Indigo2IMP:

hamei
Posts: 10107
Joined: Tue Feb 24, 2004 4:10 pm
Location: over the rainbow

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby hamei » Sat May 26, 2012 3:41 am

sgifanatic wrote:Here we go again... what low-margin business could they possibly have now that they sell friggin' supercomputers!!!

They don't do any of the Rackable stuff anymore ? So what was the point of Rackable buying them ? Rackable just wanted to be the new bankrupt SGI ?

That's one strange group of people ....

(Do you think Barrenechea saw this coming ? heh heh heh :P )

User avatar
mattst88
Posts: 400
Joined: Wed Jul 13, 2005 9:54 am
Location: Hillsboro, OR
Contact:

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby mattst88 » Sat May 26, 2012 9:39 pm

I don't understand why you, or anyone really, care. It's SGI in name only.
My computers (incomplete)

User avatar
skywriter
Posts: 3104
Joined: Fri Mar 14, 2003 5:22 am
Location: living in a linux-blunderland
Contact:

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby skywriter » Sun May 27, 2012 9:13 am

It's like watching a drunk trying to walk.
:Skywriter:

DECUS Member 368596

hamei
Posts: 10107
Joined: Tue Feb 24, 2004 4:10 pm
Location: over the rainbow

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby hamei » Sun May 27, 2012 7:06 pm

skywriter wrote:It's like watching a drunk trying to walk.

Which, watching SGI flail around or Matt post ? :P

To be honest, all American businesses are stupid now. We get called in sometimes when some jerkoff company has totally blown up an order with a Chinese company. I guess they are too incompetent to make the parts themselves, but that's another subject. So the last time I kind of jokingly asked, "How's your Chinese?" to this highly trained college-educated purchasing dork and his response ? "That's no problem, we get the waitress at the local restaurant to talk to them when we need help."

Seriously. I couldn't make this up. My fevered imagination is not as insane as the people you have running your country. And you guys swallow this shit hook, line, and sinker. It's effing nuts.

SAQ
Posts: 5772
Joined: Wed Jul 19, 2006 8:37 am
Location: Renton, WA

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby SAQ » Mon May 28, 2012 10:13 am

hamei wrote:"That's no problem, we get the waitress at the local restaurant to talk to them when we need help."


That seems to show an incredible amount of contempt for the people he's working with - though I suspect that in many cases it's probably returned in an equal measure.

On SGI - there's still a bit of original thinking going on there, better than the usual "grab a bog-standard motherboard, throw it in a bog-standard case, slap a logo on the front and call it special" thinking that so many computers are nowadays. Not much original thinking, but still more than Dell. Although it's a big stretch to claim that a system that runs two distributions of Linux is "certified on multiple operating systems." SGI has obviously learned from their past experiences here, though - they're not wasting any resources getting Windows to run on it so MS can take their money and blow them off again. Twice bitten (MIPS NT, Visual Workstations) and they're finally getting it. Looks like they dropped Itanium - can't say I couldn't see it coming, but another vendor switching makes me wonder about the future of OVMS - hopefully it will transition somewhere else if IA64 is cancelled.
"Brakes??? What Brakes???"

:Indigo: :Octane: :Indigo2: :Indigo2IMP: :Indy: :PI: :O3x0: :ChallengeL: :O2000R: (single-CM)

User avatar
jan-jaap
Posts: 4161
Joined: Thu Jun 17, 2004 11:35 am
Location: Wijchen, The Netherlands

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby jan-jaap » Mon May 28, 2012 1:08 pm

SAQ wrote:SGI has obviously learned from their past experiences here, though - they're not wasting any resources getting Windows to run on it so MS can take their money and blow them off again.

Ehm, the only 'different' SGI design right now, the Altix UV 1000, is certified to run Windows 2008 R2 server :roll:
Now this is a deep dark secret, so everybody keep it quiet :)
It turns out that when reset, the WD33C93 defaults to a SCSI ID of 0, and it was simpler to leave it that way... -- Dave Olson, in comp.sys.sgi

Currently in commercial service: Image :Onyx2:(2x) :O3x02L:
In the museum: almost every MIPS/IRIX system.
Wanted: GM1 board for Professional Series GT graphics (030-0076-003, 030-0076-004)

User avatar
smj
Posts: 1460
Joined: Mon Nov 12, 2007 7:54 pm
Location: Berkeley, CA, USA, NA, Earth, Sol
Contact:

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby smj » Mon May 28, 2012 2:32 pm

jan-jaap wrote:Ehm, the only 'different' SGI design right now, the Altix UV 1000, is certified to run Windows 2008 R2 server :roll:
Furthermore part of the "briefing" I was invited to last year, a joint operation from SGI and Intel in Santa Clara, had the VP Engineering connecting to a recently installed Altix system and firing up a Windows VM and showing off 1 terabyte of RAM. It stuck with me because I wondered how many of my employer's analysts doing unholy things with 64-bit Excel would sell their wives and children for access to it...
Then? :IRIS3130: ... Now? :O3x02L: :A3504L:- :A3502L: :1600SW:+MLA :Fuel: :Octane2: :Octane: :Indigo2IMP: ... Other: DEC :BA213: :BA123: Sun, DG AViiON, NeXT :Cube:

SAQ
Posts: 5772
Joined: Wed Jul 19, 2006 8:37 am
Location: Renton, WA

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby SAQ » Mon May 28, 2012 3:09 pm

Ah, seems I was giving them too much credit. After MS bites them twice they still come back.

Their marketing department hasn't gotten any better than the old days, it seems, since the fantastic news of Windows support isn't listed in their "features and benefits" page. It does seem probable that they've started listing all available processor speeds - so I guess that's a step up from the Fuel/Tezro days.
"Brakes??? What Brakes???"

:Indigo: :Octane: :Indigo2: :Indigo2IMP: :Indy: :PI: :O3x0: :ChallengeL: :O2000R: (single-CM)

User avatar
skywriter
Posts: 3104
Joined: Fri Mar 14, 2003 5:22 am
Location: living in a linux-blunderland
Contact:

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby skywriter » Wed May 30, 2012 6:41 am

hamei wrote:
skywriter wrote:It's like watching a drunk trying to walk.

Which, watching SGI flail around or Matt post ? :P

To be honest, all American businesses are stupid now. We get called in sometimes when some jerkoff company has totally blown up an order with a Chinese company. I guess they are too incompetent to make the parts themselves, but that's another subject. So the last time I kind of jokingly asked, "How's your Chinese?" to this highly trained college-educated purchasing dork and his response ? "That's no problem, we get the waitress at the local restaurant to talk to them when we need help."

Seriously. I couldn't make this up. My fevered imagination is not as insane as the people you have running your country. And you guys swallow this shit hook, line, and sinker. It's effing nuts.


Perhaps you have forgotten than the only reasons we are dealing with China is because the cost of goods is much cheaper than we can produce them. Specifically the general unregulated environment causes enormous environmental impact, which costs lots of money to avoid. While I find this practice deplorable, I'm glad it's not in my backyard. As for the imagined behavior of your canonical American businessman in China, what do you expect from a purchasing agent anyway? They're not the brightest bulbs in the bunch wherever they come from. Besides, why isnt the supplier speaking English anyway, they're the supplier! Oh, yes I forgot, that would cost money to train these Chinese people. Can't have that, a peasant saved is a peasant earned!

I'm just waiting for Brazil to finally to come to the table and undercut China. Dont forget there's always Africa someday. By that time we'll be drowning in pollution from low cost manufacturing anyway, so who cares.


BTW it was SGI.
:Skywriter:

DECUS Member 368596

User avatar
PymbleSoftware
Posts: 1887
Joined: Tue Jul 15, 2008 5:48 pm
Location: P.O. Box 529, Gordon, Sydney, NSW 2072, Australia.
Contact:

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby PymbleSoftware » Wed May 30, 2012 2:03 pm

skywriter wrote:Perhaps you have forgotten than the only reasons we are dealing with China is because the cost of goods is much cheaper than we can produce them. Specifically the general unregulated environment causes enormous environmental impact, which costs lots of money to avoid. While I find this practice deplorable, I'm glad it's not in my backyard.


http://articles.latimes.com/2007/mar/06 ... iapollute6
http://03116aa.netsolhost.com/WordPress/?p=1373

Sometimes its good to be south of the equator too far away from anything and everything.. ;)

R.
Last edited by PymbleSoftware on Wed May 30, 2012 2:05 pm, edited 1 time in total.
死の神はりんごだけ食べる

開いた括弧は必ず閉じる -- あるプログラマー

:Tezro: :Tezro: :Onyx2R: :Onyx2RE: :Onyx2: :O3x04R: :O3x0: :O200: :Octane: :Octane2: :O2: :O2: :Indigo2IMP: :PI: :PI: :1600SW: :1600SW: :Indy: :Indy: :Indy: :Indy: :Indy:
:hpserv: J5600, 2 x Mac, 3 x SUN, Alpha DS20E, Alpha 800 5/550, 3 x RS/6000, Amiga 4000 VideoToaster, Amiga4000 -030, 733MHz Sam440 AmigaOS 4.1 update 1.

Sold: :Indy: :Indy: :Indy: :Indigo: Tandem Himalaya S-Series Nonstop S72000 ServerNet.

Twitter @PymbleSoftware
Current Apps (iOS) -> https://itunes.apple.com/au/artist/pymb ... d553990081
(Android) https://play.google.com/store/apps/deve ... +Ltd&hl=en
(Onyx2) Cortex ---> http://www.facebook.com/pages/Cortex-th ... 11?sk=info
(0300s) Minnie ---> http://www.facebook.com/pages/Minnie-th ... 02?sk=info
Github ---> https://github.com/pymblesoftware

User avatar
skywriter
Posts: 3104
Joined: Fri Mar 14, 2003 5:22 am
Location: living in a linux-blunderland
Contact:

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby skywriter » Wed May 30, 2012 2:05 pm

East coast FTW.
:Skywriter:

DECUS Member 368596

User avatar
josehill
Moderator
Moderator
Posts: 3044
Joined: Mon Jun 06, 2005 9:53 pm
Location: New England, USA
Contact:

Re: SGI in trouble, yet (yet) again? Biggest slide since '09

Unread postby josehill » Wed May 30, 2012 3:39 pm

skywriter wrote:East coast FTW.

Absolutely! All our stuff out here is buried under six inches or more of sediment...and our lifespans are the longest they've ever been! (I used to do environmental chemistry in a former life.)


Return to “SGI: Discussion”

Who is online

Users browsing this forum: No registered users and 2 guests