Cray To Buy Supercomputer Startup - InformationWeek
IoT
IoT
Business & Finance
News
2/26/2004
02:24 PM
50%
50%

Cray To Buy Supercomputer Startup

The $115 million deal to acquire OctigaBay Systems is designed to accelerate Cray's drive into commercial markets.

Supercomputer maker Cray Inc. says it will acquire closely held OctigaBay Systems Corp., a startup supercomputer manufacturer, in a $115 million deal that's designed to accelerate Cray's drive into commercial markets.

In announcing the acquisition, the companies noted that OctigaBay has been developing a high-performance computing system that will extend Cray's commercialization of its Red Storm system. Cray, a supplier of high-performance computing systems to governmental and scientific agencies and installations, had previously announced its intention to address more scientific and technical markets.

Cray says the OctigaBay acquisition will help it broaden its addressable market by a factor of four. Both companies use 64-bit AMD Opteron processors in their configurations.

"OctigaBay's product is designed with the same philosophy" as Cray's," Cray chairman and CEO Jim Rottsolk said in a statement. "The combined company will increasingly benefit from the growing realization that purpose-built HPC systems like Cray's are more efficient and cost-effective than general business computers for the high-performance computing market."

Previewed last fall, the OctigaBay 12K high-performance machine utilizes high-speed interconnect and application accelerator technologies to remove major bottlenecks. The OctigaBay 12K operates Linux and can scale as many as 12,000 64-bit Opteron processors. First shipments of the 12K are expected in the second half of this year, with general availability scheduled for 2005. Depending on configuration size, pricing is expected to range from less than 100,000 to $2 million.

Cray said it expects the acquisition to be accretive in 2005. OctigaBay's name stems from the fact that eight investors put up the initial venture capital for the Vancouver, British Columbia, company.

Marty Seyer, general manager of AMD's microprocessor business unit, says the solutions by OctigaBay and Cray "provide differentiated, highly innovative, and high-bandwidth architectures that fully exploit the advanced capabilities of AMD64 technology. We have been working closely with both Cray and OctigaBay."

Cray says the deal calls for the exchange of 12.7 million shares and almost $15 million in cash. In addition, it will assume a number of OctigaBay employee stock options.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of IT Report
In today's technology-driven world, "innovation" has become a basic expectation. IT leaders are tasked with making technical magic, improving customer experience, and boosting the bottom line -- yet often without any increase to the IT budget. How are organizations striking the balance between new initiatives and cost control? Download our report to learn about the biggest challenges and how savvy IT executives are overcoming them.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll