NCR to spin off Teradata

NCR announced yesterday that it is going to spin off its data warehousing component, Teradata, into a separate entity. The market reacted favorably to the announcement, sending NCR stock up more than 3% during the day.

This announcement makes sense in that there is little synergy between Teradata and NCR’s other businesses. In addition, Teradata, which has gained the reputation of being one of the most scalable systems for data warehouses, is doing well, bringing in $1.5 billion in revenue in 2005. If Teradata is not acquired by either another company or a private investment firm, it will most likely become the largest company focusing solely on data warehousing company by market cap.