SGI eyes GCC to boost its revenues

Positive market projections is the fuel for aggressive growth plans in the Middle East says Silicon Graphics

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By  Maddy Reddy Published  September 14, 2003

Silicon Graphics Inc. (SGI), the leading high-performance computing, visualization and data management company is optimistic about GCC contributing substantially to its bottom line.

Gilbert Soufan, Territory Manager, Middle East, SGI, explains, “The Middle East offers excellent prospects for our leading-edge products for two reasons. Firstly, the markets in other parts of the world have either decelerated or stagnated. Secondly, the growth in Information Communication Technology (ICT) in the Middle East region has accelerated the momentum towards IT deployment across businesses.”

Soufan’s optimisim is backed by findings from the Dubai-based Madar Research Group, which predicts an increased IT expenditure across the Arab world. Madar estimates the IT market is expected to grow at a compound average of nearly 10 per cent over the next three years, surpassing the economic growth rate of GCC countries. By 2005, the GCC region’s total annual IT market will be worth about US$ 8 billion.

The company recently launched a new Linux-based system that works on the Intel Itanium 2 and Altix 3000 family of servers and super-clusters for the Middle East market.

The company is upbeat about the huge potential demand for SGI products and services it sees in the egovernment, oil and gas sectors. Financially, the company’s revenues on a regional basis are 63% from the Americas 23% from Europe and 14% from the rest of the world (Asia-pacific and the Middle East) or around $134 million.

Global revenues for full fiscal year 2003 was $962 million, compared with $1.3 billion from fiscal year 2002. Net loss for the year was $130 million, compared with $46 million from the previous year.

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