SGI Buys Assets of Linux Networx For New HPC Play

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Linux Networx is a developer of hardware and software for high-performance computing (HPC) solutions for customers in the aerospace, automotive, government, heavy manufacturing, and oil and gas sectors.

Acquired assets include software and several patents in the areas of cluster design, power and cooling and overall cluster optimization, SGI said.

According to SGI, Sunnyvale, Calif., the strategy behind the acquisition is not about the addition of a separate product line. Instead, the focus is on being able to provide hardware with Linux that, going forward, will help simplify customers' software environments.

"Linux Networx fits nicely with our strategy of using of software to drive down complexity," said Joan Roy, SGI senior director of marketing. "For VARs, SGI can now provide solutions that are easier to install and implement."

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The acquisition follows SGI's second quarter financial results reported last week, which boasted bookings of $100 million, a 30 percent gain over the first quarter. The company also said it had an increased backlog of $96 million, up roughly 50 percent compared to the previous quarter.

It's not clear how Linux Networx employees will fit into SGI. A spokesperson for SGI said that the company has made job offers to certain Linux Networx employees, including upper management, but declined further comment.