For the past couple of years, NCR's
Back in 1991, AT&T
Basically, there was little synergy between NCR and Teradata.
NCR focuses on self-service technologies, such as ATMs, kiosks, and check-in systems. It's a business with revenues of $4.5 billion and operating income of $251 million in fiscal 2005.
Teradata, on the other hand, is a developer of data warehousing systems, which allows large companies to centralize information. This has become very important because of globalization, the explosion of data, and corporate compliance requirements (such as Sarbanes-Oxley).
True, the competition is tough, with players like Oracle
As separate entities, NCR and Teradata will not have to fight for managerial attention or capital resources. Moreover, the incentive plans can be better aligned to the performance of each business.
And, as I've written before, there should be an improvement in profits in 2007 -- for both divisions -- because of recent restructurings.
However, it looks like the real gem is Teradata, which is poised for long-term growth. Interestingly enough, it may even be an attractive acquisition candidate. One possible suitor is Hewlett-Packard
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