Teradata recently unveiled its collaboration with DataRobot AI Platform, integrating it with Teradata VantageCloud and ClearScape Analytics. This move aims to elevate enterprises AI capabilities by providing enhanced flexibility and scalability in constructing and deploying AI models.
The partnership allows enterprise clients to seamlessly import and operationalize DataRobot’s AI models within the VantageCloud analytics and data platform. This integration results in quicker data accessibility and a swift pace of AI innovation.
The integration, facilitated through the ClearScape Analytics Bring Your Own Model (BYOM) feature, empowers data scientists to leverage their preferred tools while ensuring secure, accountable, and cost-effective deployment of AI models across different environments, be it cloud-based or on-premises.
Teradata’s Expansion through Partnerships
Teradata’s latest partnership aligns with its strategic focus on capitalizing on robust demand through VantageCloud and ClearSpace Analytics solutions.
Progress in Numbers
In the first quarter of 2024, Teradata witnessed substantial growth in Cloud Annual Recurring Revenue (ARR) amounting to $525 million, reflecting a 36% year-over-year increase at constant currency rates. This upsurge was predominantly fueled by the widespread adoption of Teradata’s cloud offerings, underscoring the escalating customer preference for cloud-based analytics and data management.
The company’s expanding partner roster, inclusive of major players like Alphabet’s cloud business, Google Cloud, Microsoft, Anaconda, and Amazon, has been a significant growth catalyst.
Earlier in June, Teradata declared the availability of Teradata VantageCloud Lake on Alphabet’s Google Cloud, featuring enhancements geared toward leveraging the strengths of both Teradata and Google Cloud to deliver Trusted AI backed by enterprise-scale expertise and technology.
The introduction of Teradata VantageCloud Lake on Microsoft Azure is anticipated to attract a broader clientele by providing comprehensive support for AI and machine learning workloads, including generative AI and LLMs.
Moreover, in May, at Microsoft Build, Teradata announced the preview launch of Teradata AI Unlimited within Microsoft Fabric, facilitating seamless, on-demand access to AI/ML workloads for exploration, discovery, and innovation of new use cases within the ecosystem.
Underlining its commitment to AWS (Amazon Web Services), in May, TDC renewed and expanded its Strategic Collaboration Agreement with Amazon Web Services (AWS), aimed at expediting cloud migration, enhancing data analytics modernization, and maximizing AI opportunities for its clientele.
Challenges Ahead for TDC
Despite Teradata’s compelling portfolio and extensive partner network, challenges such as on-premises erosion and prolonged deal cycles have adversely impacted the company’s top-line performance.
Year to date, the company’s shares have dipped by 19.8%, contrasting with the 25.5% surge in the Computer & Technology sector.
Teradata, currently holding a Zacks Rank #5 (Strong Sell), reported a 2.3% decline in year-over-year revenues for the first quarter of 2024, totaling $465 million on a reported basis and a 1% decline at constant currency. The Zacks Consensus Estimate for the second quarter of 2024 anticipates revenues of $447.58 million, reflecting a 3.12% year-over-year decrease.
Forecasts for non-GAAP earnings in the second quarter 2024 range between 46 and 50 cents per share. The consensus estimate remains at 48 cents, unmoved over the past 30 days.
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