At one time, Linux Networx was one of the industry's premier open-source players. I personally kicked the tires on joining and loved the innovative work it was doing. Yesterday the company, which has struggled the past few years through painful venture funding rounds and increased industry competition, tied the knot with SGI.
Or, rather, its assets did. Not much was left to sell to SGI
It's a rough business. Linux Networx used to have 15 supercomputers to its credit (on the list of Top 500 Supercomputers) but now has nine. It's the nature of the beast: you're tops one minute and falling down the list the next. It's also hard to make significant margin in supercomputing because the competition is so fierce.
I have friends at Linux Networx and wish them well. SGI, whose best days are likely past, is not where I'd want them to land, but at least it will be somewhat more stable than Linux Networx has been the past few years. Maybe.