Computer Business News: SGI Bounces Back from Bankruptcy
Computer business SGI recently stated it will be returning to the market. A judge signed off on the company’s plan for reorganization which will allow it to rise from bankruptcy protection status as early as October.
The re-envisioned SGI computer business will sport just 1,600 staff, a smaller structure than previously. The computer business will also appoint a new board of directors to assist the CEO Dennis McKenna. SGI is expecting to see profit in the coming fiscal year.
A former leader in visualization, SGI is still up against many issues, according to analysts. It will have to push its Itanium server, a task made slightly easier by Intel’s recent dual-core Itanic processor. SGI will also have to develop a new line of Xeon-based servers. Previously, SGI only produced Xeon technology and will continue to sell these products above others, trying to broaden its scope to get more mainstream clients interested beyond its usual engineering and computing beginnings.
Experts are concerned that if the computer business ignores Opteron, it will limit its ability to grow and change. Rival AMD has already gathered a group of component partners that will help it make accelerators and networking gear based on Opteron-based motherboards. These advances from other computer business moguls could draw business away from SGI.
Other competitors, including HP, IBM, Sun Microsystems and Dell have tapped into Opteron’s benefits. Still, some are optimistic that computer business SGI will rise to the challenge and compete. Major investors Morgan Stanley and GE Capital have contributed $115 million to help SGI survive the start-up period.
Blogged By: Computer Consulting Kit