Feeds

NCR hopes to cash in on Teradata spinout

And then there were two

Boost IT visibility and business value

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
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
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.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.