Cloud still an uphill climb for Teradata
The company, which provides database and analytics products and services, has its roots in massively parallel processing and isn’t “there yet” when it comes to multi-tenancy, according to one of its former senior executives.
Teradata is struggling to pivot to cloud, and shift from being sales-driven to products-driven, we heard. It’s now “working with the hyperscalers, so Amazon, Azure, Microsoft and Google Cloud Platform, and they’re trying to mimic the configuration by subscribing to their infrastructure”.
Although the industry is “booming” in front of its eyes, the challenge for Teradata is capturing business in what has become a dispersed market. “It’s moving from a corporate data centre, a single place where a corporation was processing all of their data in one place, and now, as corporations are moving to a multi-cloud strategy, the data is in several different places.”
Regarding the competitive landscape, the three players that are “out far ahead of everyone” are Amazon, Microsoft and Google respectively. “You’ve got IBM and Oracle, which are the legacy companies trying to become something new,” the expert said. “They’re probably best-positioned for on-premise legacy businesses continuing, and that’s what they’re continuing to ride on, as is Teradata.” Snowflake is also now a top competitor.
Teradata’s top line is declining primarily because it isn’t adding new customers, and its client base is also shrinking year on year, we heard. The specialist explained how Teradata has lost what used to be its competitive advantage, but added that they “wouldn’t say it’s game over, too late, they’re lost”. In fact, “the pendulum will swing back to on-premise in the future”, according to the Interview.
Despite the headwinds, the specialist believes that Teradata is “in a pretty good position right now where they are stabilising the revenue top-line decline… and they’re able to, again, de-invest in the legacy and continue to invest in trying to come up with the right configuration for the future.”
To access all the human insights in Third Bridge Forum’s Teradata – company performance & growth outlook Interview, click here to access the full transcript.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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