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I hope I am not out of line here, but Martin sent this direct to me and I
guess some of you would want to read it.

Incidentally, I wholly endorse Martin's point about the Digital Alpha
range: they have some seriously fast processors nowadays. They also showed
a software product called Hi-Five at IBC, which does "near render quality
images" in real time.


-------------------- Begin Forwarded Message --------------------

From: Martin Euredjian, INTERNET:martin at hollydig.com
To: Dick Hobbs, Dick_Hobbs
Date: Tue, Nov 4, 1997 10:19:15 am


I followed this one very closely because I had a lot of SGI stock (not any

The rough sequence of events went something like this:

They pre-announced that they would not meed their quarterly figures and the
stock dumped.  Then we had last Monday's "glitch" and a few days later they
released quarterly figures... the stock went down further.  A day or two
later they tell the world that they will be laying off about 1000 people
--roughly 10% of their workforce-- and that two key execs were out the

The easiest way to improve your short-term bottom line is to fire a lot of
people.  If the average SGI layoff was doing $30 to $50K/year they just got
rid of $30 to $50 MILLION worth of "expenses".  Their next quarterly
figures will magically look much better!  :-)

Oh, yes, I forgot.  A few days later they announced that they are planning
on releasing SGI-designed and built(?) NT machines towards the end of 1998.

Regarding the NT vs. SGI debate.  Intel just bought the Alpha line from DEC
for $700 million.  Gigahertz processors have been announced or hinted for
next year.  I think it is fair to assume that a two or four processor
PentiumII or Alpha running at an insane clock rate will be very
impressive...and they keep getting cheaper.  Despite claims otherwise, NT
boxes are easy to setup, network, manage and use.  Applications, supplies
and accesories are plentiful and inexpensive.  A wining combination in my

Sure, at the high end SGI will probably have the lead for a long time.
However, in most businesses the high end is not necessarily where all the
money is...the middle ground is where it's at and I believe that's where NT
can do very well.

-Martin Euredjian
 Telecine Engineer - Hollywood Digital
 Head Droid - Ai/Robotics

-------------------- End Forwarded Message --------------------

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