Wednesday, October 25, 2006

Is SGI The New Intergraph?

Hot off the presses today is word that SGI plans to sue ATI over potential patent infringements with regards to the way that ATI's Radeon brand of graphics cards work(Links).

Normally I don't care about patent infringement since companies are always suing one another all the time over this type of crap. What intreges me however about this particular instance is that SGI for all intents and purposes is a dead company that's lasting on life support. Most of their revenue today has come from selling what little assets they still own, for example a few years back they sold Alias (a graphics company that hand in hand helped sell workstations for SGI before PCs became powerful and capable enough to rivle what SGI offered) for about 80 million dollars, back when the Xbox came out they sold a bunch of OpenGL patents to Microsoft for about 20 million (most of this was due to nVidia fucking the pooch and not realizing that they couldn't transfer a bunch of pantents SGI licensed to them). What this has left SGI with is a server and workstation market and a barrel full of patents (most of them relating to graphics and graphics hardware), so when the going gets tough and you need to boost your bottom line, what do you do? Option 1 is to sell more patents and Option 2 is to sue the hell out of everyone to get revenue from patents.

What is particularily interesting is the parallels SGIs current path has to an old PC vendor known as Intergraph. Like SGI, Intergraph also made workstations but they were PC based. In the few years that Intergraph sold machines they developed a plethora of patents for hardware design, but when the going got tough they got out of the hardware sales market, downsized the company and are now for all intents and purposes a holding company that sues the crap out of anyone that they feel infringes on their patents (you can find numerous articles of this if you like). Its sad to see a previous market and industry leader go down in flames, but its even more sad to see them following the Intergraph route.

0 Comments:

Post a Comment

<< Home

 

 

Information, Images, and other content found on this web site is the property of Logan Foster or its respective owners, and may not be reused or redistributed in any format without prior expressed written consent. All data provided on these pages is for demonstration purposes only, no infringement of copyright is intended.