NCR Corporation: An AT&T Spinoff Message Board

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Technology Stocks : NCR Corporation: An AT&T Spinoff

NCR 27.08

+3.2%

Oct 16 5:00 PM EST

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To: Esvida who wrote (144)	1/2/1998 1:09:00 PM
From: Shibumi	Read Replies (2) of 379

>> NCR's weakness is its high costs of servers, but if that can >> be addressed in the short term by farming out manufacturing as >> recently announced and in the long term by getting out of the >> server business altogether, it will be a very competitive >> company in dw and services. Several questions on your post: It seems to me that NCR's problem is one of revenue growth. You have posited this is due to high server costs. I guess I see this as an impact on margins, but am searching for the answer of just what the impact is here on revenue growth. Once NCR has ported TDB onto Solaris and Windows NT, how will the company generate enough revenue to cover its seemingly very high SG&A costs? As you note, they will not be getting the server-related revenue any more. Why wouldn't Sun (with its nasceant yet growing service group) be a better play on large-scale decision warehousing than NCR once the TDB port is done? Put another way, what's to stop Sun from putting a bullet in the head of NCR once this port has been accomplished? It's not clear to me that the need for bigger and bigger data warehouses is growing faster than the trend of faster hardware coupled with increasingly powerful merchant RDBMS's (not to mention the trend toward data marts we've seen in the last few years.) (Please note that I am NOT saying that Oracle can do what TDB or DB2/Parallel can either now or in the next few years.) Can you shed light on why you believe that the very high end is growing at a fast enough rate to keep the overall market healthy for NCR given that the low-end of data warehousing is increasingly under attack? Bottom line: I see the advantage to NCR that getting out of servers provides, but I don't see the data warehousing motion alone solving the companies problems. I'd like your help in understanding what I'm missing -- because right now the best plays in high-end DW seems to be Sun (given this agreement with NCR) and at the low-end seems to be Microsoft (because of the TDB port to NT -- which of course won't be as scalable or available as the TDB port to Solaris). Thanks

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