The Rise and Fall of Silicon Graphics

I was there around 97 (?) and remember everyone in the company being asked to read the book "The Innovator's Dilemma", which described exactly this situation - a high end company being overtaken by worse but cheaper competitors that improved year by year until they take the entire market. The point being that the company was extremely aware of what was happening. It was not taken by surprise. But in spite of that, it was still unable to respond.

I have never really said that they where "taken by surprise", but a part of it felt like (from the outside) that management had been a little blinded by their pass success and the profit margins from their workstations combined with no clear path forwards for the whole industry. Nvidia could have very easily been just a curiosity of the past but they managed to strike it lucky standing on the shoulders of others.

If SGI had always been a company that could provide graphics workstations the worked with x86/Windows PC's early for example - maybe they would have fared better. Would have gone with the flow of technology at the time rather than fighting uphill no matter the potential technical brilliance. But being saddled to their MIPS processors and custom OS meant that once people left, they almost never came back. One can have the best tech and still fail.