SGI announced this afternoon that it has purchased the “software, patents, technology and expertise” of Linux Networx Inc. (LNXI) through an all-stock transaction. Although there has been no official statement saying so, LNXI is believed to have shut it doors. However, some of LNXI’s technology, particularly the Clusterworx Advanced software suite, appears to have a new lease on life.
This transaction returns both companies to center stage for inspection. SGI struggled famously for 10 years and emerged from bankruptcy vowing to reclaim its prior HPC status, and indeed, with former LNXI CEO Bo Ewald in charge, SGI is showing signs of improvement. LNXI was the poster child of the Linux cluster revolution, but the company struggled to retain valuable differentiation once larger vendors arrived and increased competition.