Incorporating NCR, with its superio

Incorporating NCR, with its superior product development capabilities and focused marketing plan, into AT&T, whose computer products were not as sophisticated but whose market was universal, proved to be a challenging task. To counter the market drop, a restructuring of NCR occurred almost immediately. In August 1992, even before the merger was completed, plans to close NCR's Cambridge, Ohio plant were announced. In November NCR's Workstation Products Division was split into smaller groups that would function as independent corporations. A number of AT&T employees and products were moved into the division at this time. That same month, AT&T announced that 120 workers would be released from NCR's Network Products Division in St. Paul, Minnesota.

Despite the internal upheaval caused by the hostile takeover bid, NCR continued to develop new products. A pen-based notepad computer, the NCR System 3125, was introduced in June 1991. The computer was the first of its kind to use an electronic stylus instead of a keyboard. The alliance with Teradata was solidified in December when NCR purchased the company for $520 million in AT&T stock. Ironically, Teradata's biggest customer had been AT&T.