^ That's the clean and pretty version. Here's the down and dirty one :
SGI management was as stupid as a dead fish. They couldn't pour piss out of a boot with instructions on the heel. Every action they took from about 1993 on was dumber than the one preceding it.
Ed McMuffin got starstruck eyes in Washington, bought Cray at Bill C's request, overpaid, gave away the good parts to Sun and moved into retirement.
Tricky Ricky Belluzzo pissed away millions ... hundreds of millions ? ... on his quest to enter the Wintel commodity market. When that failed miserably he took a job as vice-president of toilet bowl cleaning at Mickeysoft, for a few dozen million a year. Hmm.
Bumble Bob, not sure what he did except run the SGI corp-speak program to create the occasional oracular pronouncement for the gullible tech press (an arm of the Ziff-Davis Boot-Licking Toady Marketing Department). He may have been responsible for buying Alias high, then selling low. Two years later the buyer for Alias | Wavefront sold it to Autocrap for a couple hundred mil more. Mostly Bumble just filled his bank account and kept a low profile until they went bankrupt.
They got Dennis McKenna after going tits-up. The first tits-up, I think. He seemed to be doing a decent job of pumping out the flooded compartments and getting the engine running again, so as soon as the ship was stabilized they tossed him.
Last but not least they hired Bozo Ewald, who spent most of his time grinning for the cameras and hiring his friends and buying their companies. And oh yeah, scrapping millionsss of dollarsss worth of SGI product so that ... ummm ... well, I'm sure there was a good reason. Fiduciary responsibility, maybe.
In short, by 1995 they were the west coast's largest group of clowns outside of a circus. Everything they touched turned to shit : Alias, MIPS, whatever. Every time they re-sold a company it turned back into gold. They were convinced they were the coolest thing since Hawaiian shirts and coke spoons but cool doesn't pay the bills - except for the managers, who had several million dollars in cash to piss their way through. Blow dispensers in the bathrooms doesn't create good hardware.
And let's not forget nVidia ...
By the time they got to embracing Linux and Itanic, everyone with a nickel knew their products were way overpriced, the quality was in the toilet, and the SGI sales guys were the most arrogant assholes since Cornwallis' Hessians. When Bozo said, "Okay guys, we want you to migrate" all the customers* said,
"YES !!"
and proceeded to migrate as far away from SGI as they could get.
*footnote : a long time ago in a galaxy far away, I had some goofy beginner problem with my Indigo2. We had newsgroups then and some guy posting to alt.sys.sgi.* seemed to know his stuff. I sent him a note. His answer burned off my ears. SGI hardware was crap, their software (xfs) was crap, their service was crap, their sales force was crap and evil too, he hated them with a passion. The minute he could talk his superiors into putting up with the hassle, SGI was
gone
.
He ran the data storage system for the Hubble telescope. ***
I immediately thought of Irv Something, the IBM guy in charge of service for OS/2. Irv posted in the newsgroups all the time, answered questions. So did Scott Garfinkle, who did the OS/2 kernel. Someone once asked if they could do something the poster wanted and Irv answered, "Well, no, probably not for two people." Poster complained "You'd do it for Deutschebank !" and Irv replied "For Deutschebank we drop in a planeload of developers by parachute."
SGI wouldn't send the cleaning lady by Greyhound.
** Oh yeah, the "Inventor's Dilemna", I almost forgot. Does anyone remember Richard Pryor ? And his eight year old who broke the lamp ? "It wasn't me, Dad ! Really ! no, well, uhh, see, like, I was doing my homework in the living room when these aliens landed on the roof, see, and they were chasing me and one of them knocked it over, not me ! Honest !"
What did we hire you for, you stupid dipshits ? to make third-grader excuses for why the company pissed away hundreds of millions of dollars then went broke ? While you walked away with a pretty penny ? How about we set Palantir onto your bank account ? Fiduciary responsibility my rosy red ass.
*** An underlying problem with the "abandon the desktop to concentrate on Big Iron" scenario is that by 2000, the desktops were still decent - a Fuel was quite fast in those days and 4DWm was way nicer than
any
other Unix desktop. But their Big Iron was crap. So what they did was put their money into the product that had cancer while starving the healthy Ajax. This was to be expected because, as I mentioned at the top, the people running that place had the brains of a mentally-retarded salamander. Everything they knew about computing they learned reading a magazine on the grunter while having a cocktail over at Biff and Muffy's house.
And dat's da ugly truth of why they didn't, Black Fox.
Juliet ! the dice were loaded from the start ...