Users welcomed plans announced today for SAP's Netweaver datawarehouse to run on the Teradata database.
Delegates at Teradata's annual user conference in Istanbul, where the deal was announced, regarded it as a significant shift in the market.
Joe Zakutney, vice-president of global applications at The Hershey Company, said the deal was significant for companies like Hershey which are intense users of Teradata and SAP.
"The promise of tighter integration and closer collaboration is significant," he said. "Most companies realise that centralised datawarehousing is the best approach for business intelligence and analytics, and SAP software running on Teradata is exactly the kind of combination we foresee as a technology advantage in the years ahead."
Swisscom also welcomed the deal.
"The promise of this new agreement is well understood by companies that rely on solutions from both SAP and Teradata and is a natural step forward to help us get the most from our investment," said Daniel Neuhaus, head of datawarehouse and business intelligence at the Swiss telecommunications firm.
Another delegate said, "This is going to be very significant because the volume of data is rising so fast and there are few companies which can handle the growth rate."
According to Forrester Research, Teradata leads IBM and Oracle in high-performance database systems, especially in analysing data to service business intelligence. Teradata supports databases ranging from 6Tbytes up to 130 petabytes. New customers last year included French retailer Carrefour and Bouyges Telecommunications. They joined Wal-Mart, HSBC and ICA, among others.
Announcing the deal, Herman Wimmer, Teradata's CEO for the Europe, Middle East and Africa division, said a customer analysis had shown an 80% overlap between it and SAP.
Stephan Rossius, senior vice-president of SAP's global ecosystem and partner group, said it made sense for the two leaders in their respective sectors to cooperate. "It is very hard to bypass the leader in the market, so it is critical we work together," he said.
Terdata said the "co-innovation" partnership would deliver an integrated, scalable solution that lowers total cost of ownership and consolidates data on one database platform.
Commenting on the deal, Henry Morris, senior vice-president for worldwide software and services research at IDC, said many CIOs were seeking to consolidate their IT investments to improve efficiency.
"The integration of Netweaver and Teradata with BusinessObjects business intelligence tools supports such a strategy. This is a significant development that will be welcomed, especially by the many large companies who are joint SAP-Teradata customers."