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    Tuesday
    Sep302014

    eBay and Paypal split, what happens to the "conscious uncoupling" of the data center?

    eBay and Paypal are becoming two independent companies.  They have CEOs identified.  Figuring out how the stock will be split.  Teams are separate so not an issue except for a few groups.  Finance and HR issues not a big problem.  uh.  What about the data centers?  Will eBay run the data centers and Paypal be a tenant?  Or should it be the the around?

    eBay Inc.  today said its Board of Directors, following a strategic review of the company’s growth strategies and structure, has approved a plan to separate the company’s eBay and PayPal businesses into independent publicly traded companies in 2015, subject to customary conditions. Creating two standalone businesses best positions eBay and PayPal to capitalize on their respective growth opportunities in the rapidly changing global commerce and payments landscape, and is the best path for creating sustainable shareholder value, the company said.

    “eBay and PayPal are two great businesses with leading global positions in commerce and payments,” said eBay Inc. President and CEO John Donahoe. “For more than a decade eBay and PayPal have mutually benefited from being part of one company, creating substantial shareholder value. However, a thorough strategic review with our board shows that keeping eBay and PayPal together beyond 2015 clearly becomes less advantageous to each business strategically and competitively. The industry landscape is changing, and each business faces different competitive opportunities and challenges.

    Or is it like Gwyneth Paltrrow’s infamous not naming a divorce, a conscious uncoupling?  Each of the companies own their own servers, storage, network.  OK.  But what about shared stuff.  Building, power and mechanical infrastructure, network gear to carriers?  Some of that other stuff is like the kids that Gwenyth has to handle in uncoupling.

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    Who is bigger eBay or Paypal?  Not in terms of revenue, but in terms of data center utilization?   Paypal or eBay?  I think PayPal and some of the friends do.  So do you split the infrastructure and teams based on the % of servers you have in the data center?  No, because some of you may have beefier servers than others.  You could split it based on the power used.

    There are three data center sites?  And given availability it would seem both would like to leave things alone and not mess with then infrastructure.  So who moves out?  Or is it shared custody.

    This would be an entertaining presentation at a data center conference.

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