NCR to Spin Off Teradata

By Chris Preimesberger  |  Posted 2007-01-15 Print this article Print

Data warehousing provider Teradata is splitting off into its own corporate entity.

Data warehousing provider teradata, which has operated as part of ATM-making giant NCR since 1995, is splitting off into its own corporate entity in a transaction the company expects to take six to nine months to complete.

The tax-free spinoff, announced Jan. 8, will produce two publicly traded companies: Teradata and NCR, which will retain its central business of making banking equipment and retail checkout systems.

"Teradata and the new NCR operate in different markets, each with solid prospects for the future. But they have markedly different business models," said NCR CEO Bill Nuti, who took over in August 2005 after Mark Hurd left to run Hewlett-Packard.

Teradata, in Dayton, Ohio, sells data warehousing software that is used to comb vast amounts of data to analyze retail buying patterns and other business trends. It had sales of $1.5 billion and operating income of $309 million in 2005. The divisions revenue rose 5 percent to $378 million in the third quarter of 2006.

NCR, also of Dayton, rang up sales of $4.5 billion and operating income of $251 million in 2005.

Teradata will be able to better pursue orders against software rivals, including IBM, Oracle and EMC, according to company officials. Mike Koehler, who has been serving as senior vice president of NCRs Teradata division, will become Teradatas CEO.

Jit Saxena, CEO of Teradata competitor Netezza, told eWeek that an independent Teradata will be good for the entire data warehousing industry.

"Any time you have good, pure-play companies competing in the marketplace, thats good for the customer," said Saxena in Framingham, Mass. "Now we have one more good one. This means more innovation, and this is good in the vibrant data warehousing marketplace we have now."

Chris Preimesberger Chris Preimesberger was named Editor-in-Chief of Features & Analysis at eWEEK in November 2011. Previously he served eWEEK as Senior Writer, covering a range of IT sectors that include data center systems, cloud computing, storage, virtualization, green IT, e-discovery and IT governance. His blog, Storage Station, is considered a go-to information source. Chris won a national Folio Award for magazine writing in November 2011 for a cover story on and CEO-founder Marc Benioff, and he has served as a judge for the SIIA Codie Awards since 2005. In previous IT journalism, Chris was a founding editor of both IT Manager's Journal and and was managing editor of Software Development magazine. His diverse resume also includes: sportswriter for the Los Angeles Daily News, covering NCAA and NBA basketball, television critic for the Palo Alto Times Tribune, and Sports Information Director at Stanford University. He has served as a correspondent for The Associated Press, covering Stanford and NCAA tournament basketball, since 1983. He has covered a number of major events, including the 1984 Democratic National Convention, a Presidential press conference at the White House in 1993, the Emmy Awards (three times), two Rose Bowls, the Fiesta Bowl, several NCAA men's and women's basketball tournaments, a Formula One Grand Prix auto race, a heavyweight boxing championship bout (Ali vs. Spinks, 1978), and the 1985 Super Bowl. A 1975 graduate of Pepperdine University in Malibu, Calif., Chris has won more than a dozen regional and national awards for his work. He and his wife, Rebecca, have four children and reside in Redwood City, Calif.Follow on Twitter: editingwhiz

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