BUSN 204- 00D: Case Problems
SGI, or Silicon Graphics International, was formed by the merger of Rackable Systems and Silicon Graphics in May 2009. Although Silicon Graphics is the company with the longest and most famous history—it was once the industry leader in graphical, supercomputing solutions and worth $7 billion at its peak—it lost its competitive advantage in the last decade to other high-tech companies, such as HP, Nvidia, Dell, and Sun Microsystems. (Hill)
Silicon Graphics is the leading global provider of computing systems for high performance, high-end graphics capabilities, services, and solutions that enable its technical and creative customer 's strategic and competitive advantage in their businesses. Silicon Graphics International (SGI) is a technical computing company that provides server and storage products for large-scale data center deployments. It is also a developer of the enterprise class, high-performance features for the Linux operating system. The company 's products are used in the areas of density, power efficiency, thermal management and remote management. SGI primarily operates in the US, Ireland, China and Hong Kong. It is headquartered in Fremont, California and employs around 1,500 people.
The company recorded revenues of $629.6 million in the fiscal year ended June 2011, an increase of 55.9% over 2010. The company 's operating loss was $19 million in fiscal 2011, as compared to an operating loss of $87 million in 2010. Its net loss was $21.2 million in fiscal 2011, as compared to a net loss of $88 million in 2010 (Hill)
The former headquarters of SGI is now owned by Google. On April 1 of 2009, SGI announced that it would be acquired by Rackable Systems for 25 million dollars, almost at the same time announcing a new default. In May 2009, it completed the purchase of SGI Rackable, and after the merger the new company became known as
References: (2010, 10). Sgi vs Dell. StudyMode.com. Retrieved 10, 2010, from http://www.studymode.com/essays/Sgi-Vs-Dell-429989.html Hill, Charles W. L. H., Gareth R. Jones, Essentials of Strategic Management, 2012, 2009, C13-C20