Teradata: What’s Next?
Nov02

Teradata: What’s Next?

What’s next for Teradata Corporation? Today’s financial results follow on the heels of last week’s annual customer and partner event, tagged ‘The Edge of Next’, but the data analytics vendor has been struggling of late, as the analytics and AI markets start to accelerate and it transitions from a largely perpetual software licence to a subscription revenue model. Q2 revenue was $513 million, just short of the predicted $513.35 million, but earnings ‘plunged’ 80% year-over-year, and total revenue expectations for the year were forecast to fall between 8-10%. Released this morning, the Q3 numbers paint a much more positive picture: -product recurring revenue grew 14% from the third quarter 2016; -product annual recurring revenue (ARR) was up 23% year over year;  -sales funnel increases were driven by customer adoption of new purchasing and deployment options; and, -the projected revenue shortfall for the year was reduced by almost half, to 5%. “We reported better than expected revenue and earnings per share as we are seeing strong adoption of our new purchasing and deployment options available with Teradata Everywhere,” said Teradata President and CEO Vic Lund, in a prepared statement. “I am pleased that Teradata has turned the corner and is well positioned to deliver in the fourth quarter and build good momentum going into 2018.” TDC has approximately 1,500 customers globally, but the top 500 are the cream of the crop, accounting for close to 40% of the analytics market, according to company officials. They include 18 of the top 20 global commercial and savings banks, 19 of the top 20 telecommunications companies, the top six airlines, 11 of the top 20 healthcare companies, 15 of the top 20 global retailers, 14 of the top 20 travel/transportation companies, and 13 of the top 20 manufacturing companies, and collectively offer tremendous opportunities for substantial growth ,without considering every other potential public and private sector organization that will need a helping hand to successfully ride the analytics bandwagon. No matter how you fold, spindle or mutilate the numbers, the analytics market is huge, and growing huger [of course ‘huger’ is a word, I just used it!]: -the BDA software market (big data and analytics), which in 2016 reached $49.1 billion worldwide, is expected to grow at a five-year Compound Annual Growth Rate of 10.6%; -the embedded analytics market is expected to grow from $26.77 billion in 2017 to $ 51.78 billion by 2022, at a CAGR of 14.1%; -the risk analytics market is expected to grow from $17.60 billion in 2017 to $35.92 billion by 2022, at a CAGR of 15.3% -the customer journey analytics market is expected to grow from $4.76...

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Short-Term License Pain For Long-Term Subscription Gain?
Oct26

Short-Term License Pain For Long-Term Subscription Gain?

ANAHEIM: As the market waits with more than a little anticipation for next week’s Q3 2017 quarterly report, Teradata Corporation (TDC) is wrapping up its annual customer and partner event — approximately 4,500 attendees — which was held under the rather appropriate tag line, ‘The Edge of NEXT’. As the company suggest, ‘Next’ is the rapidly approaching analytics revolution, a market segment that has been around forever, but is undergoing rapid change and increasing adoption as the sheer volume and value of data escalates, and organizations start to achieve game-changing results folding, spindling and mutilating — i.e. analyzing — that cornucopia of data. Originating out of research at the California Institute of Technology (Caltech) in 1976, TDC began life officially in the proverbial California (Brentwood) garage in 1979, and shipped its first beta database management system (DBMS) in 1983. Fast forward to July 2017, and TDC, which now positions itself as the ‘leading data and analytics company,’ reported ‘dismal results’ for its second quarter, where ‘its top and bottom lines not only fell short of the respective Zacks Consensus Estimate but also marked significant year over year decline.’ The company is in the process of changing its business model, and as usual for a publicly traded company, investor — or at least analyst — patience is nonexistent. Last quarter’s revenue was $513 million, just a shade under the expected $513.35 million, but earnings ‘plunged’ 80% year-over-year, or 69% YoY on a non-GAAP basis. Expectations for the year are revenues of $2.095 billion to $2.140 billion, representing a decline of 10% to 8%, which makes next week’s Q3 results so interesting, to see just how the transition is faring as the revenue-model changes (hopefully) gather momentum. During the Q2 earnings call President & CEO Vic Lund told analysts TDC’s strategy, “which is business outcome-led and technology enabled,” is “extremely relevant today.” The new strategy, focused on customer success, is being supported “by our increased funnel and our momentum, which positions us well for the last half of 2017 and a strong start to 2018.” Teradata must not only overcome its business challenges, but also the changes sweeping its BDA market. Revenue projections are a moving target, but IDC puts the global big data and analytics (BDA) software market at $49.1 billion in 2016, and predicts it will expand at a compound annual growth rate of 10.6% through 2021. Rival research firm Gartner calls 2017 ‘the year that data and analytics go mainstream’, and that ‘[T]hose who fail to act today will suffer not just in 2017, but also hugely limit their potential for growth in 2018 and beyond, as the...

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CA Levels The Playing Field
Jun01

CA Levels The Playing Field

SAN JOSE: CA Technologies has a storied past that began with the mainframe back in 1976, but it’s looking to reinvent itself as the architect of the ‘modern software factory’ which will make Digital Transformation a reality. It’s all about rapid — and frequent — change, levelling the playing field, and the keys include a focus on business agility, a high degree of automation and reducing time to market, all while securing that software lifecycle, said CA President and Chief Product Officer Ayman Sayed. DT is a business phenomenon, as much as it is driven by cloud computing, Internet of Things (IoT), big data and analytics (BDA), mobility, social media and security. But technology enables that phenomenon, he said. “Every business strategy is a technology strategy.” The good news for CA, is that while technology may be the foundation of DT and the next industrial revolution, this will be a software-driven revolution. “I think the time is right… our portfolio is well positioned,” added Sayed. The challenge is that many people still think of CA as it used to be 5-10 years ago, a vendor of legacy software, and not the supplier of the tools and methodologies for today’s emerging ‘app economy’. “The key thing is that we need to see that perception catches up to reality,” said Sayed. The company has been around for quite a few decades, established a reputation, and people see CA in a specific way that doesn’t actually apply to who it is today, agreed CA’s Otto Berkes, EVP and Chief Technology Officer. Management wants to drive awareness that CA has a new and interesting story to tell, one based on technology transformation and business transformation. The company’s current value proposition is helping its customers reinvent their businesses, transform their businesses, said Sayed. We do this by giving them the tools, technology and expertise to become the modern software factory, enabling them to build the modern software factory. CA is building in analytics, machine learning and intelligence, and security in everything it creates, he added. “Transform or die, disrupt or be disrupted. It’s an ongoing journey, not a checkmark,” explained Sayed Once you’ve established these elements of digital engagement there are lots of ways to transform the business, he said. “The new world is one that levels the playing field.” Technology and DT level the playing field, give you much larger scale and reach, added Sayed. There is a gap between current capabilities and desired objectives, said Berkes. “Enterprises don’t have efficient mechanisms for turning ideas into software,” but CA’s portfolio, built around agile, DevOps, and security, “an end-to-end value proposition,” delivers maximum value...

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CA: Toolmaker For The DT Generation

SAN JOSE: CA Technologies has weathered tremendous changes since planting its mainframe roots in 1976, but as it starts its fiscal 2018, following a year of relatively flat sales and profits, the $4 billion software vendor is facing its greatest challenge… and opportunity. The challenge is transforming a company that is primarily based upon the legacy software business into a fast and agile contributor to the emerging Digital Transformation revolution. The opportunity: spending on DT technologies will exceed more than $1.2 trillion this year, and continue to grow at almost 18% per year to $2 trillion by 2020, almost 20X the anemic growth forecast for the overall IT market. There weren’t a lot of answers at last week’s ‘Built to Change Summit’, but the company’s senior management, including CTO/EVP Otto Berkes and President and Chief Product Officer Ayman Sayed, spoke frequently, and in depth, about the onrushing DT express, and how CA is positioned to help its customers weather the journey. We are one of the few companies uniquely positioned to help companies manage digital transformation, stated Sayed. “Effectively we are helping them build a modern software factory,” he said. “If you look at our customers, almost every single one of them is racing to transform their business into a software factory.” A week prior to the event the company unveiled The Modern Software Factory as its new marketing campaign to showcase the full spectrum of capability CA brings — either a single solution, or a combination of solutions across the areas of Agile, DevOps and Security — to customers navigating the challenges of digital transformation. CA has been pushing DT and the application economy for some time, and the opportunity was one of the reasons why Berkes moved over from HBO in 2015, following almost 20 years at Microsoft. “… that transformation was formative in bringing me to CA… to build the tools to enable enterprises to manage that transformation…” DT (AKA digitization or Industry 4.0) and its related technologies — cloud computing, Internet of Things (IoT), big data and analytics (BDA), mobility, social media and security — is generating tremendous change, but only 5% of large companies are prepared to meet the IT requirements of the Digital Business era. Given the stakes — i.e. a 33% increase in speed to market; 40% increase in customer satisfaction; 37% increase in new business revenue; an expected increase in annual revenues by an average of 2.9%; an expected reduction in costs by an average of 3.6%; while “first movers” ‘are far more likely to be forecasting both revenue gains of more than 30% and cost reduction of more than 30%...

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Portability Is Essential In The Multi-Cloud Future
Apr20

Portability Is Essential In The Multi-Cloud Future

Pretty much everybody agrees the world is moving to the cloud — public, private (which includes managed as a service) but predominantly the combination of both (hybrid) — and the primary questions are what to move where, and when (how is also a huge concern, but while not easy, it’s really just fiddly bits). Four years ago Cisco started using the concept of the ‘world of many clouds’ to describe its customer-choice model, and earlier this month data and analytics leader Teradata unveiled database license flexibility across hybrid cloud deployments. There has been an “aggressive uptick in interest, if not deployment of public cloud” by the company’s global 1000 customers, said Brian Wood, Director, Cloud Marketing, Teradata. He told IT Trends & Analysis that over 90% of their customers plan to have hybrid IT by 2020, and “85% want to consume as a service.” The company has 100 customers in the multi-petabyte range, with the largest customer in the 90Pb range, so licensing becomes critical, smoothing out the investments, he said. With portability, “ it’s have your cake and eat it too.” This massive move to the cloud, with a mix of public, private, hybrid and on-premise resources means portability — data, software and licenses — is a critical component. Cloud lock-in is no more palatable than vendor lock-in, and while only one vendor, with a limited set of offerings — albeit a set of significant offerings — Teradata says its newest capability, an industry first, gives its data management solution for analytics the ‘very best value proposition.’ “Not only is the database license portable across the hybrid cloud options, but so are workloads, enabled by a common code base in all deployments,” said John Dinning, EVP and Chief Business Officer, Teradata, in a prepared statement. “This flexibility is a first in our industry and means that data models, applications, and development efforts can be migrated or transferred unchanged across any ecosystem.” Looking ahead reinforces the growing cloud-first future, although this cloud shift is not just about cloud, stated Gartner. “This cloud-first orientation will continue to increase the rate of cloud adoption and, consequently, cloud shift,” said Ed Anderson, research vice president. “Organizations embracing dynamic, cloud-based operating models position themselves for cost optimization and increased competitiveness.” Spending on datacenter systems is forecast to be $175 billion in 2017, growing to $181 billion through 2020. However, while DC budgets will be relatively flat, spending on cloud system infrastructure services (IaaS) will grow from $34 billion in 2017 to $71 billion through 2020, account for 39% of total spending on datacenter systems. The latest market data/forecasts demonstrate the headlong rush to...

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