Patrizio: Dell buys SGI

by Dustin Puryear

Snazzy headline, no? Andy Patrizio over at internetnews just made a very good case for some e-marriages, including:

• Apple and nVidia
• Dell and SGI
• Microsoft and Salesforce.com

I have to admit that it is difficult to argue with the logic, although I am sure a little more time of thinking on this would end the insanity. Or perhaps not.

Let’s talk about Dell and SGI for one. SGI, which, frankly, I had rather forgotten about, is still out there and focusing on high-end supercomputing. This is not exactly news to anyone, and has not been for a while I suppose. SGI has always focused on the high-end market (although they did make a push toward the mass market if I remember correctly), and when they started getting into financial trouble they began to regear and refocus. It seems that their strategy may be working.

SGI seems to be making the “niche player” come back in style. The computer market is a commodity market. Only the high-end, including mainframes and supercomputers, can be considered specialized. SGI knows this and instead of fighting a losing battle with IBM, Sun, HP, Dell, and others, they instead are taking advantage of their existing expertise.

A Dell buy-out could very well give Dell that high-end appeal that it lacks. However, it could also saddle Dell with a set of skills that it cannot handle or, more to the point, capitalize on. Dell is a mass-market company. That is what they do. It’s not often that I visit a colo facility anymore, but when I do all I really see are blue lights spread across a considerable amount of square feet, and we all know what those blue lights are.

I’m going to give some more thought to Patrizio idea about Microsoft and Salesforce and blog about that tomorrow. Hmm. Interesting.

P.S. Sorry for the whole "e-marriages" word.

1 Comments

Jannes
2008-07-23 01:43:32
my best wishes for the "bride". i hope dell knows what they do :) anyway good luck for the married couple...
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