Teradata reports tepid growth alongside big data investments

Data warehousing company Teradata has reported revenue of $2.732bn for 2014, an increase of 1% on 2013

Data warehousing company Teradata has reported revenue of $2.732bn for 2014, an increase of 1% on 2013. Sales outside the Americas were up by 5% to $1.113bn.

The company’s fourth-quarter results were down by 1% to $761m.

Teradata president and CEO Mike Koehler said the firm was not satisfied with the results, despite them being roughly in line with what was expected.

“We were pleased with the record number of new customer wins for the quarter and with the second highest number of wins for the year, along with the additions we made to our big data analytics and marketing applications portfolios," he said.

"We are increasing investments significantly in 2015 in big data analytics, marketing applications and Teradata Cloud to go broader in the market. Although this will impact earnings in 2015, we believe these investments will position us well for longer term revenue and earnings growth.”

The company’s big data analytics portfolio includes Aster, Hadoop and 1000 Series appliances, along with its so-called Unified Data Architecture software, tools and related services.

The open source Hadoop stack can figure as an alternative to enterprise data warehouses such as Teradata’s. 

In 2014, two of the commercial Hadoop distributors Cloudera and Hortonworks seemed to be squaring off against each other on the issue of whether Hadoop should complement or replace traditional enterprise data warehouse investments

Hortonworks, partnering with Teradata, seemed to be on the side of complementing. Cloudera seemed more on the replacement side.

Meanwhile, Teradata – with the SQL-H language in Aster  – has exemplified the SQL-on-Hadoop trend that is aimed at bringing Hadoop into the mainstream of corporate IT.

In a third-quarter analyst call, Koehler said: “If you look at all the Aster wins we have, that's putting Hadoop to work in a production environment. 

"We've had customers doing discovery and exploratory analytics on all of the various types of data in Hadoop with Aster now for two or three years. This continues to move Hadoop into the mainstream and the role it plays in the analytical ecosystem."

The company’s net income was $367m, down by 3% from 2013’s $377m.

2014 customer wins in the UK included insurance provider Admiral Group, which is reportedly using Teradata technology for customer analytics.

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