Rackable Retains SGI Name

After closing a $42.5 million deal for Silicon Graphics, Rackable Systems decides the name of the new company will be Silicon Graphics International. Despite the old SGI's troubles with debt and bankruptcy, Rackable officials say the name SGI still carries a lot of weight internationally. Rackable will now become a brand name within the SGI company. The new SGI also is retaining several executives from the old SGI as it looks to build out its HPC and visualization offerings.

The SGI name will live on, even though Rackable Systems bought the venerable Silicon Valley pioneer.

After completing the $42.5 million deal to acquire SGI May 11, Rackable officials announced that the company will retain the SGI name-with a twist-and that Rackable will become a brand name within the larger company.

For the previous company, SGI stood for Silicon Graphics Inc. With the new company, SGI stands for Silicon Graphics International. That said, the new SGI will keep the old company's Web address and will be referred to as SGI.

The name change took effect May 11, said George Skaff, chief marketing officer at SGI.

Skaff said company officials tossed around many names for the new company-including Rackable Silicon Systems and Rackable Graphics-but decided Silicon Graphics International made the most sense, despite SGI's recent history of poor business decisions, bankruptcy and debt. Rackable was a profitable company with no debt, and the business policies that got the company to this point won't change, he indicated.

"Just because the name is SGI does not mean that our policies are the same as [the old] SGI," Skaff said, noting that SGI as a brand and as a name is still strong throughout the world. "It is known better internationally than Rackable."

In addition, given the broader portfolio that includes products from both Rackable and the old SGI, the name Silicon Graphics International fit better, he said.

Skaff also said the new SGI will keep many executives from the old SGI.