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Teradata Partners with SAS - Analyst Blog

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Teradata Corporation (TDC) announced the extension of its partnership with SAS, the leader in business analytics software and services to optimize SAS Marketing Automation. With the optimization of SAS Marketing Automation on Teradata, customers can deploy and utilize the solution faster and more effectively.

Teradata Corporation is a leading provider of Enterprise Data Warehousing (EDW) solutions, including enterprise analytic technologies and services worldwide.

SAS and Teradata, together provide business intelligence (BI) solutions comprising integrated customer analytics, data integration and campaign management.  Additionally, the recently announced SAS and Teradata Business Insight Advantage Program allows customers to take advantage of a common framework for integrating enterprise data with advanced analytics and customer intelligence application.

Deploying SAS Marketing Automation quickly and efficiently on Teradata’s predictive linear platform enables customers to meet marketing needs and reduce any technology restrictions to deliver timely, relevant and complex solutions.

Teradata announced an agreement with SAP in the second quarter of 2009, under which Teradata will combine its entry level Enterprise Data Warehouse solution with SAP’s Netweaver 7.2 middleware platform business to help customers integrate and access data more efficiently in the Teradata data warehouse for business analytics. Adding Teradata with SAP will provide customers greater choice, thus expanding Teradata’s own customer base and helping it gain traction among manufacturing customers. The joint sales effort will go live in mid 2010, driving meaningful upside in late 2010 and beyond.

In 2008, the company also entered into a partnership with SAS, under which the latter allowed users to use the TDC solution in combination with the SAS analytics and reporting functions. Thus new customer wins and strengthening relationships with large vendors will be the source of revenues and profits, moving forward.

We expect Teradata’s long-term growth to come from new strategic partnerships as the company has long-standing relationships with large organizations in the same niche market.  Teradata has strategic partnerships with large system integrators such as SAP AG (SAP), SAS, Accenture LLP (ACN) and International Business Machines (IBM) Global Business Services as well as collaboration agreements with Hunan Telecom Company Limited for developing a customized campaign management system as well as WebTrends Corporation to provide marketers a full view of their customers’ online and offline data.

However, increased consolidation among larger players in the data warehousing industry is eating into Teradata’s market share (currently ranks fourth in terms of data warehousing market share according to IDC research). Recently, SAS and Netezza (NZ) have expanded their partnership to integrate their respective products, and will unveil the SAS Scoring Accelerator for Netezza Corp. in early 2010. We believe Teradata will face stiff competition as competitors continuously enter the market with new or upgraded products.

With a greater number of competitive products in the market, we expect pricing pressure to continue, thereby limiting margin expansion. In our opinion, Teradata is a 2010 growth story and we maintain our Neutral recommendation on the stock.
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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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