SunGard Availability Services To Operate Independently Moving Forward

SunGard AS logoSunGard is making a change in their business structure that splits off their availability services to run separately. Data Center Knowledge reports

SunGard Data Systems will split off its Availability Services business, which operates its data centers and disaster recovery business. The Sungard Availability business unit will be spun off into a separate company to its existing stockholders, including its private equity owners, in a tax-free transaction. The new company will continue to use the SunGard Availability Services name. SunGard says customers should see no impact from the change.

Essentially this is taking a giant company and creating two really big companies. SunGard is relying on that size to help the Availability Services business maintain traction in the marketplace despite being cut off from the mother ship.

The leadership of both companies said exactly what you would think they would say in a situation like this. First, this move helps each business because of (fill in the standard business response here) and secondly, it should all be transparent to the end user.

Sounds good on paper. Theory and practice oftentimes are at odds though so we’ll see what this looks like a few months from now.