Feeds

NCR hopes to cash in on Teradata spinout

And then there were two

Build a business case: developing custom apps

NCR has kicked out one of its "pillars" by setting its Teradata division free as a separate company.

The cash register maker today announced plans to split into two publicly traded companies. One company - NCR - will continue selling a wide range of goods, stretching from point of sale machines to servers. The other - Teradata - will concentrate on selling data warehousing software. NCR shareholders will have stakes in both companies should the arrangement go through as planned in the next six to nine months.

Teradata's flashy software powers some of the most sophisticated retail and manufacturing operations on the planet. With customers such as Wal-Mart and Dell, the division has managed to bring in close to $400m per quarter in revenue.

Just last year, NCR's management billed Teradata as one of the key "pillars" of the company moving forward. The executives pointed to the division's customer base and growth rate as positives.

These same executives appear to have changed their minds and now believe that Teradata could prove more lucrative as a separate business.

The spinout might also help Teradata combat more aggressive rivals. Former Teradata boss Mark Hurd, for example, is now overseeing a new date warehousing business at HP.

Current NCR CEO Bill Nuti will continue to lead the hardware business, while SVP of the Teradata division Mike Koehler will be CEO of the new company.

(In related news, Koehler approved the decision last month to cancel Teradata's annual sales event, citing cost cutting and a desire to "stay focused" as reasons for the move.)

The spinout is not subject to shareholder approval, although the deal must meet some regulatory requirements. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.