It could also be that SGI got a peek at quad core K8L that one of their competitors (CRAY) will be selling
In scale up machines SGI's competition is overwhelmingly IBM, not Cray. In HPC the competition from x86 is mainly low priced clusters using commodity boxes. Cray faces the exact same problem with cost based competition from x86 clusters for its scale up systems as do IBM, SGI, and HP. The K8L doesn't change a thing except perhaps the performance/price flavour of the month in the x86 cluster commodity box market.
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