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Teradata Idea Proposal (TDC)

Teradata Idea Proposal (TDC)
 

What is the magnitude of Teradata’s market share losses to other vendors? Can Teradata’s transformation to a cloud-based subscription model reverse any of these losses?

Report Available: January 28, 2021

 

Blueshift’s initial research found TDC near the end of its transformation from an on-premises perpetual software licensing business model to a cloud-based SaaS subscription-based model in the data analytics space. TDC’s change in business strategy was required because of its declining revenue and a market environment with enterprises moving their data to the cloud. Prior to and during the multi-year transition, TDC suffered from poor financial performance and several leadership changes that negatively affected the company. With the company makeover near completion, TDC must now try to regain some growth momentum in a highly competitive market dominated by tech giants that it must both partner with and compete against.

 

Observations

  1. TDC’s flagship product offering, Vantage, is a hybrid multi-cloud data analytics software platform that enables ecosystem simplification by unifying analytics, data lakes, and data warehouses. With Vantage, enterprise-scale companies can eliminate silos and cost-effectively query all their data, all the time, regardless of where the data resides – in the cloud, on multiple clouds, on-premises, or any combination thereof – to get a complete view of their business. TDC is also the only data warehouse and analytics provider with hybrid multi-cloud offerings across the top three public cloud vendors, AMZN’s AWS, MSFT’s Azure and GOOG’s Google Cloud.
  2. TDC’s product transformation to the cloud has experienced some recent contract success and industry accolades. In November, Gartner recognized both TDC and its Vantage platform as Cloud Database Management Systems leaders. TDC’s CEO Steve McMillan said, “This recognition from Gartner validates the strength of our cloud position and further underscores the commitment to our customers to meet them wherever they are on their cloud journey.” Recent contracts for TDC’s Vantage include a multi-year deal with Tabcorp Holdings Limited (TAH.AX) to provide the platform on AWS for TAH’s data warehouse and advanced analytics needs. During TDC’s Q3 earnings call, the company announced several deals including one with Loblaw Companies Ltd (LBLCF), as well as a leading truck manufacturer in Asia, and a Fortune 100 CPG company.
  3. TDC has some work to do to regain the market share and momentum it lost during its transition to a cloud-based SaaS company and its past leadership challenges. Coverage has been negative and cautionary regarding TDC with comments and articles suggesting that the company is shrinking and will lose share as its core product technology is 35 years old, that TDC has great technology but is only a so-so business, and that TDC’s turnround story is flawed and should not be believed. However, a recent article highlights that TDC may have hit bottom and the strategic makeover could bring about a big change in Q4 and 2021.
  4. A Blueshift Research technology source said TDC will be challenged to regain share as it came to the cloud late in the game. He added that enterprises are favoring Azure, while retail and public facing companies are using AWS, and healthcare companies are using Google Cloud. All three cloud provides offer quality data storage and analytics equal to or superior than TDC. This highly competitive landscape offers lower cost solutions from tech heavyweights AMZN, MSFT, GOOG, CRM, SAP, and other specialty companies like SNOW and DDOG.

 

What is the magnitude of TDC’s market share losses to other vendors? What are TDC customers’ spending plans in 2021? How much are they spending with TDC? How much are they spending with TDC competitors? What will this ratio look like in the coming years? Are enterprises choosing to work with multiple vendors or favoring a single vendor model? Will the transition of TDC products to the cloud drive share gains? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: TDC customers, Data management companies, TDC competitors, and Industry specialists. 

 

Companies: Teradata Corp. (TDC), Alphabet Inc. (GOOG/GOOGL), Amazon Inc. (AMZN), Datadog Inc. (DDOG), Microsoft Corp. (MSFT), Snowflake Inc. (SNOW)

 

Research Begins: January 4, 2021

 

To see other ideas Blueshift Research is currently working on, please click here.

 

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