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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Talent-Gap Cure Or Just Cur-AI-ting IT?
Oct19

Talent-Gap Cure Or Just Cur-AI-ting IT?

Cisco originally pitched a story focused on its latest initiatives to address the ‘IT skills and knowledge gap’, which is a big and growing problem, and while the just-released AI-powered predictive services can be folded, spindled and mutilated into a ‘talent-gap cure’, it appears more to be just a really good set of business solutions. The costs and resources required to keep the datacenter lights on can account for 70-80% of IT budgets, said Bryan Palma, Senior Vice President and General Manager, Cisco Advanced Services, but while improving efficiencies and uptimes will pay a huge business dividend, that doesn’t mean those freed-up resources will translate into the IT skills and knowledge required to facilitate the new IT reality, digital transformation, which by one estimate will be worth $493.39 billion by 2022, and is speeding along at a CAGR of 19.1%. The new services, available immediately, fall into two categories — Business Critical Services and High-value Services — and are extensions of what the company has been providing for some time, said Palma. Services is the second largest business unit at Cisco, at $13 billion and 25% of revenues, with 90% of its services revenue recurring. A big part of the company’s competitive advantage is its installed base of 50 million networks, he told IT Trends & Analysis, and the telemetry data from that provides Cisco with a better picture of what’s going on in the IT environment than practically every other vendor. Professional services can leverage that data to help customers shift their focus from maintaining their datacenters and network infrastructures to finding new ways to improve customer services and generate revenues, he added. “At the same time we’re seeing that IT has been more defensive and they are looking to be more offensive, and that’s where we’re looking to take them.” Calling it a new portfolio of subscription services, Business Critical Services ‘deliver more capabilities including analytics, automation, compliance and security by Cisco Advanced Services’ technology experts’. “In the past it’s been called optimization,” said Palma, and as part of their ongoing focus on constant improvement, have made a number of improvements. “What we’re trying to do is give them the flexibility to move with their strategic options.” The new service benefits include helping minimize human error by: reducing complexity and cost through automation, orchestration, and technical expertise; accelerating business agility and transformation through advanced analytics and machine learning capabilities; and reducing risk with automated compliance and remediation services.The business outcome objectives are to help reduce downtime by 74%, resolve issues 41% percent faster and reduce operational costs by 21%. The other side of the services portfolio, Technical Services,...

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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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Dell Joins Cisco in Hyping DT Security
Jul27

Dell Joins Cisco in Hyping DT Security

Right after Cisco’s call for a threat-centric approach to securing the digital transformation (DT), Dell has released a survey finding that while everybody (97%; the other 3% were recovering from ‘Luddite Life’ celebrations) is investing in digital technologies, 85% say security teams can better enable DT initiatives if they are included early in the project, and 96% say ‘securing digital technologies poses challenges including lack of resources, risk of a security breach, finding the right balance between security and employee productivity, and loss of control.’ Dell’s survey of 631 US, European and Australian IT decision-makers with responsibility for security found an interesting disconnect: while 89% of respondents recognize digital transformation is happening in their industry, only 50% believe it’s happening in their organization. Yet 72% express active projects in mobile, with 68% involved in cloud projects and 37% in IoT, the usual suspects in formal digital transformation projects. This disconnect is because DT is not like other transformation initiatives, said Jackson Shaw, Senior Director, Product Management, Dell Security. Digital transformation tends to be a top-down strategic initiative, that starts initially at the board or C-level, he told IT Trends & Analysis. “DT as a process originates really high in the organization and the line of business really sees it as their slice of heavenly pie,” agreed Bill Evans, Senior Director, Identity and Access Management, Dell Security. One of the challenges that we see, where it happens organically from the bottom, that’s where security gets left out, he added. Strategic or not, DT can be derailed by security, said Shaw. While security often is seen as a barrier to digital transformation and brought into the process too late to make a meaningful impact, security teams can serve as enablers in helping the business adopt digital technologies when included early in the planning process, according to Dell. Security is at the heart of digital transformation, agreed Cisco’s Ben Munroe, Senior Manager, Product Marketing. Of necessity — and having absolutely nothing to do with the company’s core business — he maintained that “Security must start with the network.” A key reason why security is too often looking in at DT from the outside has to do with the traditional view of security as the Department of No, said Evans. “We see security as enabler… it has to step up and become an enabler, the Department of Yes.” “Digital transformation is bigger than just IT and security,” said Shaw. “It’s used by organizations to transform themselves, to become more customer centric.” DT can pay huge dividends, according to a survey commissioned by CA: 45% reported increased customer retention rates; while 44% also recognized...

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