AT&T Co is patting itself on the back over the success of its acquisition of NCR Corp, which ended a fierce fight by the Daytoner to preserve its independence a year ago. The success rate for mergers of high-tech companies has been pretty poor, AT&T chairman Robert Allen said. But we’ve made good progress, he said. We’ve put a new boat into the water and it looks very seaworthy indeed. Allen said that AT&T solved the number one problem stemming from its foray into computers that began after the 1984 breakup of the old Bell System – billions of dollars of losses. We have finally staunched the flow of red ink, he said, adding that the combined AT&T-NCR computer operation was profitable, without giving figures. NCR, meanwhile, is availing itself of the resources of its parent, including research at Bell Laboratories Inc and AT&T’s data-transmission knowledge, noted Allen and his counterpart at NCR, Gil Williamson. No other company is better positioned to take advantage of the merger of computers and communications, Williamson said, echoing Allen’s rationale during the takeover battle. Among products to result are automated banking machines from NCR that provide a video hookup with a live teller, using AT&T video technology. The news conference was held at NCR’s Manhattan sales office in a building that, ironically, once was the headquarters of Sperry Corp, Associated Press notes, commenting that the takeover of Sperry by Burroughs Corp to form Unisys Corp was one of the most disastrous computer industry alliances, resulting in years of losses, layoffs and an incomprehensible product strategy. Allen said he avoided a Unisys-like fiasco chiefly by leaving NCR alone. NCR is still NCR, it’s still headquartered in Dayton, and, most important, NCR’s management is still running the show, Allen said – indeed with all the other calls on his time, particularly from the fast-moving telecommunicati-ons business, he must be grateful that there is one part of the company he can trust to get on with it. He noted that AT&T went so far as to let NCR decide which products from the former AT&T computer line would bduly announced a new business unit borne by AT&T, adding that it helped that both were dedicated to open systems. Oracle Corp duly announced a new business unit for NCR in recognition of Oracle and NCR’s strength in open systems and parallel processing, Oracle said. This new strategic business unit establishes NCR as Oracle’s key partner and underscores Oracle’s commitment to joint development. The unit will be responsible for development and marketing of Oracle on the NCR System 3000 family and Tower 32. NCR’s strength in retail and financial markets, AT&T’s dominance in telecommunications and Oracle’s market leadership in commercial computing and government arenas, provide the basis of a long-term relationship, Oracle said. NCR and Oracle worldwide sales and support organisations have formed alliances for joint marketing in point-of-sale, banking, Oracle Financials and Manufacturing.
