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Teradata
Teradata
from Wikipedia

Teradata Corporation is an American software company that provides cloud database and analytics-related software, products, and services. The company was formed in 1979 in Brentwood, California, as a collaboration between researchers at Caltech and Citibank's advanced technology group.[2]

Key Information

Overview

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Teradata is an enterprise software company that develops and sells database analytics software.[3][4][5][6] The company provides three main services: business analytics, cloud products, and consulting.[7] It operates in North and Latin America, Europe, the Middle East, Africa, and Asia.[8]

Teradata is headquartered in San Diego, California and has additional major U.S. locations in Atlanta and San Francisco, where its data center research and development is housed.[5] It is publicly traded on the New York Stock Exchange (NYSE) under the stock symbol TDC.[9] Steve McMillan has served as the company's president and chief executive officer since 2020.[10][11] The company reported $1.836 billion in revenue, a net income of $129 million, and 8,535 employees globally, as of February 9, 2020.[12]

History

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The concept of Teradata grew from research at the California Institute of Technology and from the discussions of Citibank's advanced technology group in the 1970s.[13] In 1979, the company was incorporated in Brentwood, California by Jack E. Shemer, Philip M. Neches, Walter E. Muir, Jerold R. Modes, William P. Worth, Carroll Reed and David Hartke. Teradata released its DBC/1012 database machine in 1984,[14][15] with Citibank as an early customer.[16] In 1990, the company acquired Sharebase, originally named Britton Lee,[17] another early database machine vendor that, unlike Teradata's IBM mainframe focus, primarily served midrange systems.[16] In September 1991, AT&T Corporation acquired NCR Corporation,[18] which announced the acquisition of Teradata for about $250 million in December. Teradata built the first system over 1 terabyte for Wal-Mart in 1992.[19]

NCR acquired Strategic Technologies & Systems in 1999 and appointed Stephen Brobst as chief technology officer of Teradata Solutions Group. In 2000, NCR acquired Ceres Integrated Solutions and its customer relationship management software for $90 million,[20] as well as Stirling Douglas Group and its demand chain management software.[21] Teradata acquired financial management software from DecisionPoint in 2005.[22] In January 2007, NCR announced Teradata would become an independent public company, led by Michael F. Koehler.[23][24] The new company's shares started trading in October.[9]

In April 2016, a hardware product line called IntelliFlex was announced.[25] Victor L. Lund became the chief executive on May 5, 2016.[26][27]

In October 2018, Teradata started promoting its cloud analytics software called Vantage (which evolved from the Teradata Database).[28]

On May 7, 2020, Teradata announced the appointment of Steve McMillan as president and chief executive officer, effective June 8, 2020.[29]

In December 2024, Teradata successfully appealed a California federal judge's decision in favor of SAP SE in a case involving allegations of trade secret misappropriation and antitrust violations. The lawsuit accused SAP of using Teradata's trade secrets to address technical issues in its software and of violating antitrust laws by bundling products and requiring customers to purchase them together. A federal appeals court reversed the earlier ruling, reviving Teradata's claims.[30]

Acquisitions and divestitures

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Teradata has acquired several companies since becoming an independent public company in 2008. In March 2008, Teradata acquired professional services company Claraview, which previously had spun out software provider Clarabridge.[31] Teradata acquired column-oriented DBMS vendor Kickfire in August 2010,[32][33] followed by the marketing software company Aprimo for about $550 million in December.[34][35] In March 2011, the company acquired Aster Data Systems for about $263 million.[36][37] Teradata acquired Software-as-a-service digital marketing company eCircle in May 2012, which was merged into the Aprimo business.[38]

In 2014, Teradata acquired the assets of Revelytix, a provider of information management products and for a reported $50 million.[39][40][41][42] In September, Teradata acquired Hadoop service firm Think Big Analytics.[42] In December, Teradata acquired RainStor, a company specializing in online data archiving on Hadoop.[43] Teradata acquired Appoxxee, a mobile marketing software as a service provider, for about $20 million in January 2015,[44] followed by the Netherlands-based digital marketing company FLXone in September. That same year Teradata acquired a small Business Intelligence firm, MiaPearl.[45]

In July 2016, the marketing applications division, using the Aprimo brand, was sold to private equity firm Marlin Equity Partners for about $90 million[46][47] with Aprimo under CEO John Stammen moving its headquarters to Chicago.[48] while absorbing Revenew Inc. that Marlin had also bought.[49]

Teradata acquired Big Data Partnership, a service company based in the UK, on July 21, 2016.[50] In July 2017, Teradata acquired StackIQ, maker of the Stacki cluster manager software.[51]

Technology and products

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Teradata offers three primary services to its customers: cloud and hardware-based data warehousing, business analytics, and consulting services.[52] In September 2016, the company launched Teradata Everywhere, which allows users to submit queries against public and private databases. The service uses massively parallel processing across both its physical data warehouse and cloud storage, including managed environments such as Amazon Web Services, Microsoft Azure, VMware, and Teradata's Managed Cloud and IntelliFlex.[53][54] Teradata offers customers both hybrid cloud and multi-cloud storage.[55] In March 2017, Teradata introduced Teradata IntelliCloud, a secure managed cloud for data and analytic software as a service. IntelliCloud is compatible with Teradata's data warehouse platform, IntelliFlex.[56] The Teradata Analytics Platform was unveiled in 2017.[57]

In July 2025, Teradata introduced ModelOps, updating its ClearScape Analytics to streamline agentic AI and generative AI applications.[58][59]

Big data

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Teradata began to use the term "big data" in 2010. CTO Stephen Brobst attributed the rise of big data to "new media sources, such as social media."[60] The increase in semi-structured and unstructured data gathered from online interactions prompted Teradata to form the "Petabyte club" in 2011 for its heaviest big data users.[61]

The rise of big data resulted in many traditional data warehousing companies updating their products and technology.[62] For Teradata, big data prompted the acquisition of Aster Data Systems in 2011 for the company's MapReduce capabilities and ability to store and analyze semi-structured data.[63]

Old hardware line end of support

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To focus on its cloud database and analytics software business,[64] Teradata plans to end support for its old hardware platforms; Teradata will provide remedial maintenance services for six (6) years from its Platform Sales Discontinuation Date. Platform Support Discontinuation is the end of the support date for a particular Teradata hardware platform.[65] Teradata hardware platforms saw support discontinuation start in 2017, with the 2580 generation of their data warehouse appliance, with only their IntelliFlex 2.5 and R740 hardware platforms being listed as "current product". All other platform models/classes have a published support discontinuation date.[66][67] Teradata customers may request extended support for a Teradata platform that has reached its end of support life. The extended support for a platform requires approval from the local Area Director and will be delivered on a "best effort" basis, as spare parts for older platforms may no longer be available.[66]

Teradata Vantage analytics

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In October 2018, Teradata started calling the cloud analytics software product line Vantage. Vantage is composed of various analytics engines on a core relational database, including the Aster graph database and a machine learning engine. The capability to leverage open-source analytic engines such as Spark and TensorFlow was released.[68] Vantage can be deployed across public clouds, on-premises, and commodity infrastructure. Vantage provides storage and analysis for multi-structured data formats.[69]

References

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from Grokipedia
Teradata Corporation is an American multinational technology company specializing in cloud-based data analytics and data platform solutions, providing tools for data warehousing, database management, and trusted AI applications to enable enterprises to process and analyze massive datasets for informed . Founded on July 13, 1979, in , by a team including Jack E. Shemer and Philip M. Neches as a collaboration between researchers and Citibank's advanced technology group, Teradata initially developed parallel processing database systems capable of handling terabytes of data—hence its name, derived from "tera-data." The company was incorporated to address the growing need for efficient management of large-scale business data, marking it as a pioneer in what would later be known as technologies. Headquartered in , , Teradata has evolved from an on-premises database provider to a leader in hybrid multi-cloud analytics, offering products such as the Teradata Vantage platform, which integrates SQL databases, , and graph analytics across cloud environments like AWS, Azure, and Google Cloud. Its solutions support industries including , retail, healthcare, and , emphasizing data harmonization, scalability, and AI-driven insights to drive business innovation and efficiency. As of June 2025, Teradata operates globally with approximately 5,700 employees and focuses on delivering trusted AI at scale through its unified data architecture, which allows seamless querying and analysis across diverse data sources.

Introduction

Company Profile

Teradata Corporation is a multinational software company founded in 1979 and headquartered in , . It operates globally with offices in locations including , , and , and employs thousands of professionals across multiple countries to support its international customer base. The company specializes in the enterprise data analytics sector, providing cloud databases and AI solutions designed for large-scale data management and processing. As a publicly traded entity on the under the ticker symbol TDC, Teradata had a market capitalization of approximately $2.6 billion as of November 2025. Teradata emphasizes hybrid cloud platforms that enable "Trusted AI" capabilities at scale, allowing organizations to integrate and analyze data securely across diverse environments. Its solutions serve major industries such as finance, retail, and healthcare, where reliable data-driven decision-making is critical.

Core Offerings

Teradata's core offerings center on VantageCloud, a comprehensive cloud analytics and data platform that integrates data warehousing, data integration, and AI-driven insights to enable enterprises to derive value from their data assets. This platform supports the unification of diverse data sources into a single, scalable environment, facilitating advanced analytics and decision-making across various business functions. VantageCloud includes components such as VantageCloud Enterprise for secure, high-performance analytics and VantageCloud Lake for lake-centric data modernization, allowing organizations to handle both structured and unstructured data efficiently. The platform extends to specialized services for data harmonization, , and deployment, ensuring consistent and compliance in on-premises, , and hybrid setups. These services encompass for and integration, as well as tools that promote secure data sharing and reuse, helping enterprises maintain data quality and regulatory adherence. Deployment options are flexible, supporting multi-cloud ecosystems with partners like AWS, , and Google Cloud to minimize and optimize costs. Targeted primarily at large enterprises in sectors such as , healthcare, retail, and , Teradata's offerings address needs for scalable , comprehensive customer 360-degree views, and enhanced . For instance, financial institutions use it for fraud detection and , while retailers leverage it for personalized recommendations and . The key lies in accelerating through trusted, governed data and AI capabilities, delivering measurable ROI by simplifying multi-cloud complexity and reducing total ownership costs. Teradata delivers these offerings through subscription-based models that bundle software, consulting, and support services, including as-a-service options for infrastructure management, AI activation, and ongoing operations. Consulting services focus on migration and AI implementation to speed time-to-value, while support ensures and SLA compliance, often resulting in significant cost savings and performance improvements for customers. Building on its historical roots in data warehousing since , Teradata has evolved these core offerings to meet contemporary demands for hybrid and AI-centric .

Historical Background

Founding and Early Development

Teradata was established in 1979 in , through efforts involving key figures such as Philip M. Neches, a senior scientist from Citibank's development center, and other innovators including Jack E. Shemer, aimed at tackling the challenges of large-scale and in an era of growing business data volumes. The company, incorporated as a Delaware corporation on July 13, 1979, derived its name from the vision of managing terabytes of data, a scale unprecedented at the time, and began operations in a modest garage setting backed by from Brentwood Associates. This founding collaboration drew on expertise from Citibank's advanced technology initiatives and researchers at the (Caltech), positioning Teradata to pioneer technologies for enterprise needs. In 1984, Teradata introduced its first commercial product, the DBC/1012, marking the debut of a dedicated database computer system designed as a back-end for mainframe environments. This processing (MPP) system was engineered to handle terabytes of data efficiently, revolutionizing and retrieval for applications that traditional systems struggled to support. The DBC/1012 quickly gained recognition, earning Fortune magazine's "Product of the Year" accolade in 1986 for its innovative approach to high-volume data processing. At the core of the DBC/1012's design was a groundbreaking parallel architecture, consisting of independent processor nodes—known as Access Module Processors ()—that enabled concurrent query execution across multiple units, achieving linear scalability far beyond the limitations of conventional relational databases reliant on single-processor architectures. This shared-nothing MPP model distributed data and processing tasks evenly, minimizing bottlenecks and supporting complex analytical workloads essential for decision support. By integrating custom hardware with , Teradata created a cohesive platform optimized for data warehousing, setting a new standard for performance in enterprise environments. The /1012 saw rapid early adoption among companies seeking robust decision support systems, with one of the first installations occurring in 1983 to enhance customer and transaction handling. Other major adopters, including retailers and financial institutions, followed, leveraging the system for integrated ; by the early 1990s, Teradata's revenues had surged to $224 million, reflecting a substantial and growing installed base of systems worldwide that powered pivotal shifts toward data-driven operations. During the 1980s, Teradata encountered significant challenges from competitors such as and , whose established offerings began incorporating parallel processing features to encroach on the emerging data warehousing market. To counter this, Teradata differentiated itself by prioritizing tightly integrated hardware-software solutions, ensuring seamless scalability and reliability tailored specifically for large-scale analytical applications, which helped solidify its niche despite the competitive pressures. This focus on specialized integration propelled Teradata's growth through the decade, laying the groundwork for its dominance in enterprise data warehousing.

Corporate Evolution and Independence

In 1991, AT&T Corporation acquired NCR Corporation for $7.4 billion; later that year, in December, the AT&T-owned NCR completed the acquisition of the independent Teradata Corporation for approximately $520 million in AT&T stock, positioning Teradata within AT&T's broader computing operations as part of an effort to strengthen its enterprise data processing capabilities. This merger marked Teradata's transition from a standalone entity—originally founded in 1979—to a key component of AT&T's computing division, enabling expanded resources for large-scale data management solutions. By 1996, undertook significant restructuring, spinning off its telecommunications equipment business as Lucent Technologies while retaining NCR—and thus Teradata—within its portfolio; NCR was subsequently divested as an independent later that year. Teradata continued to operate as an NCR division, benefiting from the separation but remaining aligned with NCR's evolving priorities. As the 2000s progressed, NCR increasingly emphasized retail and technologies, such as ATMs and point-of-sale systems, which began to diverge from Teradata's data warehousing focus, prompting preparations for greater autonomy by 2007. On September 30, 2007, NCR completed the tax-free spin-off of Teradata, distributing shares to NCR stockholders and establishing it as an independent public company listed on the under the ticker TDC; trading commenced the following day. Under the leadership of President and CEO Mike Koehler, who had previously headed the Teradata unit at NCR, the company marked its full independence with initial post-spin-off revenue reaching $1.70 billion for 2007. By 2008, revenue grew to $1.76 billion, reflecting Teradata's expanded emphasis on solutions beyond traditional warehousing. In the early 2010s, under Koehler's continued tenure until 2016, Teradata strategically pivoted from a hardware-centric model toward software and services, exemplified by acquisitions like Aprimo in to bolster integrated and a broader shift to subscription-based offerings. This evolution enabled Teradata to address emerging demands for flexible, analytics-driven platforms while reducing reliance on proprietary hardware.

Acquisitions and Divestitures

Teradata began an aggressive acquisition strategy in to diversify beyond traditional database hardware into , software, and emerging technologies. In August of that year, the company acquired Kickfire, a startup specializing in columnar database management systems integrated with , for an undisclosed amount; this move aimed to accelerate and performance on commodity hardware. Later in December , Teradata purchased Aprimo, a provider of cloud-based integrated software, for approximately $525 million in cash; the acquisition expanded Teradata's portfolio into (CRM) and , enabling more comprehensive customer solutions. The strategy intensified in 2011 with the acquisition of Aster Data Systems in March for $263 million, following an initial 11% stake purchase in 2010; Aster's processing (MPP) platform enhanced Teradata's ability to analyze structured and unstructured at scale. From 2011 to 2014, Teradata focused on bolstering its and Hadoop ecosystem through targeted buys. In July 2014, it acquired the assets of Revelytix, a developer of metadata management and tools, and Hadapt, which specialized in SQL-on-Hadoop integration, both for undisclosed amounts to improve and hybrid capabilities. That , Teradata bought Analytics, a dedicated to Hadoop implementations and solutions, also undisclosed, adding expertise in professional services for open-source deployments. The year closed with the December acquisition of RainStor, a specialist in high-performance data archiving for Hadoop environments, further strengthening archival and compression features for large-scale data lakes. Subsequent acquisitions continued to emphasize cloud management and analytics services. In July 2016, Teradata acquired Big Data Partnership, a UK-based consultancy focused on open-source and training, for an undisclosed sum, to expand its EMEA presence in implementation services. The following year, in July 2017, it purchased StackIQ, a provider of bare-metal provisioning and cluster management software, undisclosed, to automate and simplify deployments across hybrid and environments. In terms of divestitures, Teradata sold its marketing applications business—primarily Aprimo—to an affiliate of Equity Partners in June 2016 for $90 million, allowing the company to refocus resources on core data warehousing and amid shifting market priorities away from legacy CRM tools. More recently, in July 2023, Teradata acquired Stemma Technologies, a cloud-native data cataloging platform leveraging AI for metadata management, for an undisclosed amount; this integration accelerated discovery and in AI-driven workflows. Overall, these 10 key acquisitions since 2010, peaking in 2014 with four deals, have collectively shaped Teradata's evolution toward integrated , AI, and ecosystem capabilities, with the 2016 divestiture representing its primary strategic exit to streamline operations.

Technology and Products

Database Management Systems

Teradata's Database Management System (DBMS), known as Teradata Database or Vantage, is a relational database designed for massively parallel processing (MPP) in enterprise environments, emphasizing scalability and high-performance analytics on large datasets. The core architecture revolves around a shared-nothing MPP model, where data and processing are distributed across multiple nodes to enable linear scalability without single points of failure. This setup supports fault-tolerant operations by isolating components and using redundancy mechanisms, such as AMP clusters that provide fallback for data rows across 2-8 Access Module Processors (AMPs). At the heart of the system are the Parsing Engines (PEs), which handle SQL query parsing, optimization, and step generation before distributing workloads via the BYNET interconnect. Each PE receives incoming SQL requests, compiles them into executable steps, and coordinates with the Dispatcher to route these steps to the appropriate AMPs through the BYNET, a high-speed interconnect that facilitates bi-directional communication, including broadcast, multicast, and point-to-point messaging for efficient query distribution. The AMPs serve as the primary units for data storage and processing, each managing a portion of the database on virtual disks, performing tasks like data retrieval, joins, and aggregations in parallel. This division ensures that queries are executed concurrently across the system, with the BYNET enabling seamless node communication and fault tolerance by rerouting tasks if an AMP fails. Data distribution in Teradata relies on hashing algorithms tied to the primary index (PI), which evenly assigns table rows to for optimal parallelism and load balancing. For each row, the PI columns are hashed to produce a 32-bit row hash value, which maps the row to a specific AMP via a ; this process ensures uniform distribution and supports efficient single-AMP or all-AMPs operations depending on the query. Primary AMP Indexes (PA) extend this for column-partitioned tables, maintaining similar hashing for ordered data access. The DBMS adheres closely to ANSI/ISO SQL standards, including support for advanced extensions like temporal tables and geospatial data types, while enabling embedded analytics functions for in-database processing. It is engineered to manage petabyte-scale datasets, delivering sub-second response times for complex queries through parallel execution, as demonstrated in environments handling thousands of concurrent sub-second requests on petabyte-class systems. This scalability stems from the MPP design, allowing growth from terabytes to petabytes without performance degradation. Security in the Teradata DBMS incorporates (RBAC), where privileges are assigned via user-defined roles to enforce least-privilege principles across applications and responsibilities. Data protection features include column-level encryption using algorithms like AES, password hashing, and message integrity checks to safeguard data at rest and in transit. The system complies with regulatory standards such as GDPR for data privacy and for financial reporting integrity, through mechanisms like audit logging and row-level security policies that filter access based on user context.

Analytics and AI Platforms

Teradata Vantage serves as a multi-cloud analytics engine that unifies SQL querying, , and graph analytics within a single platform, enabling enterprises to process and analyze data across diverse environments without . This integration allows for seamless execution of advanced analytic workloads directly on the data, leveraging the underlying database's scalability for efficient performance. At the core of Vantage's AI and ML capabilities is ClearScape Analytics, which provides built-in libraries for in-database functions, supporting an ecosystem that integrates with Python and through packages like teradataml and tdplyr. These tools facilitate automated model deployment via , enabling rapid scaling of models from development to production while minimizing manual intervention. Additionally, features for "Trusted AI" include bias detection mechanisms to ensure ethical model outcomes, promoting transparency and compliance in AI applications. Key capabilities of Vantage's platforms emphasize in-database processing to eliminate movement, supporting real-time for immediate insights, segmentation for targeted , and detection through at scale. For instance, in-database functions accelerate prevention by enabling near-real-time analysis of transaction . In 2025, Vantage received enhancements through ClearScape Analytics, incorporating generative AI tools such as the Teradata Package for Generative AI, which supports querying via large language models and automated insight generation for faster . These updates also include advancements for agentic AI, allowing scalable deployment of autonomous agents with contextual data access. Vantage's recognition in 2025 includes TrustRadius Top Rated awards for Cloud Data Warehouse and Relational Databases, highlighting its leadership in enterprise .

Big Data and Cloud Solutions

Teradata has adapted its platform to integrate seamlessly with ecosystems through QueryGrid, a data fabric that enables federated querying across diverse sources without data movement. This includes connectivity to Hadoop distributions using Presto for processing, allowing users to query Hadoop directly from Teradata environments. QueryGrid also supports integration with via dedicated connectors, facilitating bidirectional access and processing between Spark clusters and Teradata systems for advanced analytics workflows. Furthermore, it provides connectors for databases such as , enabling real-time querying of alongside traditional relational sources in a unified manner. Teradata's cloud offerings center on Vantage, its multi-cloud analytics platform, which is deployable on (AWS), , and (GCP). This deployment model supports lift-and-shift migrations from on-premises Teradata systems, allowing organizations to transfer existing workloads to the cloud with minimal reconfiguration while leveraging native and compute resources. Vantage on these platforms provides elastic scaling for handling variable workloads, ensuring high performance for enterprise-scale across public clouds. In hybrid cloud environments, Teradata emphasizes a unified data access model that orchestrates workloads across on-premises, private, and clouds, reducing and enabling consistent . This approach incorporates auto-scaling capabilities, such as dynamic compute allocation in data labs for self-service exploration, to match resources to demand efficiently. Cost optimization is achieved through strategies like separating compute and storage for independent scaling and blended pricing models that combine reserved capacity with on-demand usage, minimizing expenses in multi-environment setups. For big data handling, Teradata incorporates lakehouse architecture within Vantage, combining data warehouse reliability with data lake flexibility to manage large volumes of unstructured data alongside structured sources. This unified platform uses object storage to accommodate diverse data types, including text, images, and logs, enabling SQL-based analytics on raw data without extensive preprocessing. The lakehouse design supports ACID transactions and schema enforcement on unstructured datasets, facilitating scalable processing for AI and machine learning applications. As of 2025, Teradata has advanced multi-cloud interoperability through enhanced QueryGrid extensions and intercloud orchestration, allowing automated workload movement across AWS, Azure, and GCP based on performance and cost metrics. Additionally, the company has introduced AI features in its Trusted AI framework, including tools like AgentBuilder for building secure, auditable AI agents that ensure compliance and in distributed environments (in private preview as of late 2025). These developments emphasize reliable AI deployment with built-in controls for regulated industries, integrating directly into multi-cloud data pipelines.

Hardware Evolution and Support

Teradata's hardware development originated with the DBC/1012 database machine, released in as the company's inaugural product, engineered as a shared-nothing processing capable of managing up to one terabyte of through a cluster of interconnected nodes. This leveraged multiple processors, each with dedicated and storage, connected via a BYNET interconnect, marking an early innovation in scalable database hardware that addressed limitations of mainframe-based systems at the time. Following NCR's acquisition of Teradata in , hardware evolution integrated NCR's technology, enhancing reliability and for enterprise deployments. In the , Teradata advanced its hardware lineup with systems like the NCR 3700 series, incorporating processors to support growing data warehousing demands and shifting from custom designs toward more standardized components for improved cost-effectiveness and performance. This period emphasized architectures, allowing configurations with hundreds of nodes to process complex queries across petabyte-scale datasets, as seen in deployments for major financial institutions. The 2000s brought a significant transition to standard x86 server architectures in the Teradata 5000 and 6000 series, prioritizing commodity hardware to reduce costs while maintaining and linear scalability through SMP nodes running Unix variants. These platforms, often branded under NCR Teradata, enabled broader adoption by leveraging processors and off-the-shelf components, achieving benchmarks like terabyte-scale query processing in enterprise environments. By the 2010s, Teradata introduced specialized appliances, including the Appliance for Hadoop launched around 2013, which combined integrated hardware with Hadoop distributions like Cloudera for hybrid big data processing, featuring InfiniBand networking and scalable storage nodes. This marked a bridge to multi-engine analytics but preceded a full pivot to software-defined architectures by 2015, where Teradata ceased new proprietary hardware development to emphasize platform-agnostic solutions. The shift focused on decoupling software from hardware, allowing deployments on customer-provided or cloud infrastructure while supporting legacy migrations. Support for certain legacy T-series and other hardware platforms concluded between 2022 and 2024, with Teradata urging customers to transition to Vantage-based cloud offerings for continued maintenance and upgrades. Currently, Teradata no longer sells new hardware systems, instead partnering with certified infrastructure providers like Dell and HPE for optimized on-premises or cloud environments that run its Vantage platform. This strategy underscores a complete emphasis on software portability and ecosystem integration over proprietary hardware.

Current Status and Developments

Financial Performance

In the third quarter of 2025, Teradata reported of $416 million, representing a 5% decline year-over-year on a reported basis and 6% in constant currency. This breakdown included product sales of $369 million, down 3% year-over-year, and consulting services of $47 million, which decreased 23% year-over-year. Despite the overall dip, the company saw positive momentum in its segment, with public annual recurring (ARR) reaching $633 million, an 11% increase year-over-year as reported and in constant currency, contributing to total ARR of $1.490 billion, up 1% as reported but flat in constant currency. For the full year 2024, Teradata's revenue totaled $1.75 billion, a 4.5% decrease from $1.83 billion in 2023. Earnings showed significant improvement, with net income rising 84% to $114 million, reflecting a 77.4% earnings growth over the past year that reversed prior declines. Non-GAAP operating margins expanded notably, reaching 23.6% in Q3 2025, up 110 basis points year-over-year, and contributing to overall margins exceeding 20% amid cost controls and restructuring efforts. Recurring revenue, which accounted for approximately 88% of Q3 2025 total revenue at $366 million, underscores the shift toward a subscription-based model, with cloud and recurring sources comprising over 70% of the overall mix. As of November 14, 2025, Teradata's traded at $27.24 per share, with a of $2.57 billion. The company faced challenges from slower-than-expected wins in new clients, contributing to headwinds, but improved, reaching $88 million in Q3 2025, a 28% increase year-over-year. Following 2020s-era restructuring, including workforce reductions and operational optimizations, Teradata reduced its debt to $437 million as of September 2025, down from prior levels. Looking ahead to full-year 2025, Teradata projects to decline 5-7% year-over-year in constant currency, driven by macroeconomic pressures despite increasing demand for AI-integrated solutions, as highlighted in analyses. Teradata's latest guidance also includes recurring declining 3-5% year-over-year in constant currency and of $260-280 million. The company anticipates non-GAAP between $2.38 and $2.42, supported by continued cloud ARR expansion and margin improvements.
Key Financial MetricsQ3 2025YoY Change
Total Revenue$416M-5%
Product Sales$369M-3%
Consulting Services$47M-23%
Public Cloud ARR$633M+11%
Total ARR$1.490B+1%
$88M+28%
Non-GAAP Operating Margin23.6%+110 bps

Market Position and Innovations

Teradata holds a prominent position in the enterprise market, recognized as a leader in the 2025 Data Platform Technology Value Matrix by Nucleus Research, alongside competitors such as , , , and . This accolade highlights Teradata's strengths in delivering comprehensive, cloud-centric data platforms that balance cost-efficiency, robust performance, and governance for workloads like and real-time insights. In Gartner's 2025 Critical Capabilities for Management Systems, Teradata Vantage tied for second place in the use case and ranked among the top five vendors overall for analytical applications. Additionally, Teradata has been ranked number one by in logical data warehousing and traditional data warehousing analytical use cases. The company continues to innovate in AI and platforms, with a strong emphasis on Trusted AI as a core theme at its Possible 2025 , which explores architecting AI applications, optimizing strategies, and building trusted systems. Teradata Vantage has incorporated advanced features for generative AI, including seamless integration with Cloud's Gemini models through VantageCloud Lake to enable predictive and generative AI solutions for customer loyalty and enterprise-scale applications. These enhancements support Teradata's broader push toward agentic AI and , allowing users to build multi-agent systems on trusted foundations. Teradata fosters an extensive ecosystem through strategic partnerships, particularly co-engineered solutions with AWS and to accelerate data modernization and AI/ML deployments. The company collaborates with independent software vendors (ISVs) in AI and , as evidenced by its 2025 Partner of the Year Awards, which recognized partners like AtPeak for agentic AI integrations with Vantage that drive innovative use cases across environments. These alliances extend to events like AWS re:Invent 2025, where Teradata showcases autonomous AI for enhanced customer experiences. Despite slower new cloud wins, Teradata demonstrates resilience through strong , with improved retention rates contributing to a cloud expansion rate of 109% in Q3 2025 and public cloud annual recurring revenue (ARR) growth of 11%. This high retention underscores the company's emphasis on delivering measurable ROI from AI scaling, including performance improvements of 25-30% in via VantageCloud. Looking ahead, Teradata executives predict 2025 as AI's "year of reckoning," marking the onset of significant payoffs in enterprise adoption through trusted, governed implementations that address data maturity gaps and enable agentic AI for enhancements.

References

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