past as prologue

the bankruptcy filing of Silicon Graphics prompts a solid a register case study, similar to its solid analysis of the intel-amd dynamic.

back in the good ole days, thinks looked good for SGI

At its peak SGI turned over $4bn a year, and employed around 10,000 people.
The company was additionally blessed by having customers across the economy. Two thirds of SGI's business was split evenly across two cyclical sectors - defense and manufacturing - but as manufacturing spending along came another splurge in defense-related spending.

SGI squandered opportunities to diversify, adapt and capitalize on its intellectual property. the reg also notes some microsoft related shenanigans.

while the rise and fall of a former hi-flier may seem interesting, it serves as a cautionary tale to current (bubbly) companies...
yeah i'm talking about you netflix, if adaptation to big media moves to embrace peer-to-peer technology doesn't prove nimble enough.
the company already plays in perhaps a niche market in which it strategically alienates some of its 'best customers' who may be likely, as early adopters, to try new methods of delivery.
btw, if you feel 'alienated', check out the netflix throttling settlement