SGI Awarded Second $30 Million Contract from the High Performance Computing Modernization Program

December 23, 2014 — SGI (NASDAQ: SGI), a global leader in high performance solutions for compute, data analytics and data management, announced that the Department of Defense (DoD) has awarded SGI a second $30 million contract as part of its High Performance Computing Modernization Program (HPCMP). The contract is for an SGI® ICE™ X supercomputer with SGI® InfiniteStorage™ and is part of the DoD’s ongoing initiative to improve high performance computing (HPC) resources. The system will bolster the compute capabilities of the DoD Supercomputing Resource Center (DSRC) at the Air Force Research Laboratory (AFRL) located at Wright-Patterson Air Force Base in Ohio. The HPCMP’s first award was announced in October, also part of the annual Technology Insertion program, and will provide a supercomputer to the U.S. Army Engineer Research and Development Center (ERDC) located in Vicksburg, Mississippi.

The HPCMP provides the DoD supercomputing capabilities, high-speed network communications and computation science expertise that enable DoD scientists and engineers to conduct a wide-range of focused research, development and test activities. This partnership puts advanced technology in the hands of the U.S. Armed Forces more quickly, less expensively, and with greater certainty of success.

The AFRL DSRC will receive an SGI® ICE™ X supercomputer with Intel Haswell processors, Intel® Xeon Phi™, and NVIDIA® GPGPUs with a high performance SGI® InfiniteStorage™ 5600 storage system based on NetApp® E-Series technology, running Intel Enterprise Edition for Lustre file system. The open standards-based system will run SUSE Linux Enterprise Server. The system, Thunder, will deliver theoretical peak performance of 5.6 Petaflops, which is expected to be the fastest unclassified system in the DoD.

The hybrid system will allow the AFRL DSRC and its scientists to perform modeling and simulation and examine the applicability of specific accelerators to key applications that effectively meet the user community’s workload.

“Thunder’s capability is amazing, and reaffirms our commitment to providing our customers with world-class computational tools,” said Jeff Graham, director of the AFRL DSRC. “The power of Thunder will drive solutions to the most challenging problems facing our nation in today’s volatile global environment.”

The system will consist of 125,888 compute cores, 356 NVIDIA® GPGPUs, 356 Intel® Xeon Phi™ coprocessors and 12 petabytes of usable storage. Thunder will be co-located with the 8 M-Cell SGI ICE system, Spirit, deployed in 2012 and will feature 6 M-Cells — SGI’s single largest M-Cell deployment. SGI M-Cell technology provides industry-leading power and cooling efficiency.

“We look forward to closely partnering with the AFRL DSRC to deliver unprecedented speed, scale, and efficiency to its user community,” said Jorge Titinger, president and CEO, SGI. “Evidenced by our partnership with the HPCMP over the last two decades, SGI is committed to providing the best computational technologies available that increase the productivity of the DoD’s Research, Development, Test, and Evaluation community.”

Awarded by the U.S. Army Engineering and Support Center, Huntsville, the AFRL and ERDC contracts are each valued at more than $30 million product revenue and include four separately priced one year options for maintenance. The systems are expected to be operational in summer 2015.

To learn more about SGI ICE X, visit

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Cautionary Statement Regarding Forward Looking Statements
The statements made in this press release regarding future product development and sales revenue are forward-looking statements within the meaning of the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933. Actual results could differ materially from those described by these statements due to a number of uncertainties, including, but not limited to:

Lengthy acceptance cycles of SGI’s products by certain customers, development or product delivery delays, and delays in obtaining necessary components from suppliers;
The addition of new customers or loss of existing customers;
Unexpected changes in the price for, and the availability of, components from SGI’s suppliers;
SGI’s ability to enhance its products with new and better designs and functionality;
Actions taken by competitors, such as new product announcements or introductions or changes in pricing;
Market acceptance of newer products;
SGI’s reliance on contract manufacturing and its anticipated benefits; and
other risks as detailed in SGI’s filings with the Securities and Exchange Commission (“SEC”), including those described under the caption “Risk Factors” in SGI’s Annual Report on Form 10-K filed on September 8, 2014 and SGI’s Quarterly Report on Form 10-Q filed October 31, 2014 which are available at the SEC’s web site at
You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. SGI undertakes no obligation to update the information in this press release unless otherwise required by law.

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