Trillions of bytes of data don't faze Teradata. The company designs and implements enterprise data warehousing systems that store and transform information about customers, financials, and operations into data that can be used to make strategic business decisions. Its products include its core database software, hardware components, and applications for managing demand and supply chains, marketing, performance, and risk. It also offers consulting, support, and training services. Teradata targets companies in the entertainment, financial services, government, health care, manufacturing, retail, telecommunications, and transportation industries. Around 60% of sales are derived from the Americas.
With facilities in some 40 countries, the company markets and sells its products worldwide to a client base that includes 3M, Cisco, and Wells Fargo. Teradata primarily uses a direct sales force, but it also sells through distributors and resellers. Strategic partnerships with global and regional systems integrators, independent software vendors, and consultants also help to extend its sales and marketing reach. Systems integration partners include Accenture, Cognizant, Deloitte, and IBM Global Services. Teradata's hardware components are assembled by Flextronics using components supplied by such vendors as EMC, Intel, and LSI.
In 2010 sales were up 13% over 2009 on higher product sales primarily in the Americas region, and Teradata reported another solidly profitable year. The company's strategy is to invest in its core technology in order to expand its reach into additional market segments and to add product offerings, both through acquisitions and internal development.
Teradata made its first major acquisition in 2011 with the purchase of cloud-based marketing software firm Aprimo for about $525 million in order to expand its business analytics portfolio. Through Aprimo, Teradata now offers integrated marketing management capabilities. The company also bought the remaining shares of Aster Data Systems that it did not already own that year for $263 million in order to scale up its capacity amid growing demand across industries for data storage services. Teradata previously acquired 11% of Aster, a developer of software used in data analysis, in 2010. These purchases are in line with broader industry activity, including Hewlett-Packard's purchase of data storage specialist 3PAR in 2010 and IBM's acquisition of data analytics company Netezza the same year.
In 2012 Teradata acquired Munich-based eCircle, a developer of digital messaging software for marketing purposes, to complement the Aprimo product line.
Teradata became part of retail and financial systems maker NCR Corporation when AT&T bought both companies in 1991. AT&T spun off NCR, including Teradata, in 1996. More than a decade later, in 2007, NCR spun off Teradata as a separate, publicly traded company. – less