SGI VERSUS DELL

Case 2 - SGI versus Dell: Competition in Server and Cloud Computing



Case 2 - SGI versus Dell: Competition in Server and Cloud Computing

The History, Development, and Growth of the Company over Time

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 is the help to design and build safer cars and airplanes, are made in medicine, predict the weather, entertain us with special effects in the film industry or provide help in high-level simulations for the government and defense (Charles and Gareth, 2011).

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 June2011, 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 (Jonathan, 2001).

Silicon Graphics International, by Silicon Graphics, Inc., Also known as SGI, or historically cited as Silicon Graphics Computer Systems (SGCS), began as a manufacturer of terminal charts in 1982. 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 Silicon Graphics International (Jonathan, 2001).

The Identification of the Company's Internal Strengths and Weaknesses

SGI servers are leaders in the technical computing market, allowing penetration in key industries such as manufacturing, science, energy, defense, and multimedia.

SGI's approach with its modular architecture enables creative and technical users to achieve high levels of performance.

SGI computers are also used in movies that give it an edge over other companies in the same industry. For example, it was used in the movie Jurassic Park in 1993 and Twister, the heroes were using a laptop from SGI. It is, in fact, an SGI laptop with a motherboard similar to Indy.

SGI delivers advanced and high performance computing graphics solutions, which enable customers and provides them with life in an optimal and very efficient way.

Once inexpensive PCs began to better handle the graphics at a lower cost, SGI began to specialize in creating high-performance servers for storing digital video and Web.

SGI has supported free software, working with projects like Linux and Samba, as well as providing the code ...