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Can SGI Expand Its Turf?

Silicon Graphics Inc. (SGI) (NYSE: SGI) has quaffed a stiff shot of marketing schnapps.

Thus fortified, the high-end Unix server specialist is trying to reposition itself as a major storage player, with plans to more assertively market and sell its SAN offerings outside the high-end computing shops that are the company's traditional customer base. As part of the push, SGI has established a single brand -- InfiniteStorage -- for its various storage hardware and software. [Ed. note: Which beats its first idea, L'il-Bit-o-Storage.]

In addition, it has signed an OEM deal with SAN management software startup AppIQ Corp. The deal is the first such licensing arrangement for AppIQ, which was founded in July 2001.

"The intent is to take these InfiniteStorage products and take them out a little more aggressively into the mainstream market," says Ajay Anand, director of storage marketing at SGI.

Right. But the problem is, today SGI's foothold in the storage market is quite finite. Today, nearly all of SGI's storage products are sold in conjunction with its servers, and mainly into vertical industry segments like scientific computing and oil and gas exploration.

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