Careers at Teradata
Teradata’s mission is to offer solutions that make smart companies smarter.
Teradata Corporation is a provider of analytic data solutions and related services. The company operates two reportable business segments:
- Data and Analytics – This segment consists of data warehousing, big data analytics, and related services. The solutions capture, store, and analyze various types of data to obtain relevant insights.
- Marketing Applications – This segment consists of integrated marketing management solutions that help assist organizations in increasing customer loyalty and business impact. The solutions are provided on-premises or in the Cloud as software-as-a-service (SaaS).
The idea behind Teradata originated from a combination of two sources: research being conducted at the California Institute of Technology (Caltech) and conversations being held by the advanced technology group at Citibank. The university demonstrated the “how” of a potential database management system, while the bank showed the “why”. Representatives from both sides collaborated to design the system, which would carry out parallel processing with many microprocessors to facilitate decision support. They named the solution Teradata, which was a reference to its ability to handle terabytes (trillions of bytes) of data.
Teradata was incorporated as a company in 1979 by Dr. Philip M. Neches, Dr. Jack E. Shemer, Jerold R. Modes, Walter Muir, Carroll Reed, and William Worth. Over the next year they worked to obtain financing, finally raising $2.5 million in a VC round in 1980. The next few years focused on intense design and development. In 1984 Teradata sent a beta system to be tested by Wells Fargo Bank. In 1984 it introduced its relational database management system on a proprietary platform, producing the first-ever parallel data warehouses and data marts.
The next few years saw some major milestones. In 1986 Teradata had its first profitable quarter and Fortune magazine named the system its “Product of the Year.” In 1987 the company went public. In 1989 it formed an alliance with NCR Corporation to create a new generation of database computers. A few years later in 1991, NCR was acquired by AT&T Corp.; by the end of the year, NCR acquired Teradata. In 1992, Teradata unveiled its first database management system that was over one terabyte. In 2007 it returned to being an independent, public company.
Business model of Teradata
Teradata has a mass market business model, with no significant differentiation between customer segments. It markets its offerings to technology and business buyers at organizations of all sizes across a wide range of industries, including energy, banking/financial services, healthcare, communications, manufacturing, retail, travel and transportation, and utilities. In 2015, the company’s top ten customers were responsible for 14% of its overall revenues.
Teradata offers two primary value propositions: convenience and brand/status.
The company offers convenience by making it easier for customers to carry out data management. Its solution collects data from numerous sources, which saves users time and also facilitates robust analysis. It also removes data silos to foster more informed decision-making. Moreover, it integrates omni-channel marketing communications for consistent, streamlined messaging.
The company has built a strong brand over time. It was one of the first providers of database management systems, making it well-established. It has over 100 technology partners and 2,600 clients in 77 countries. Its customers include the following:
- 11 of the top 20 healthcare companies
- 13 of the top 20 manufacturing companies
- 14 of the top 20 travel/transportation companies
- 15 of the top 20 global retailers
- 18 of the top 20 global commercial and savings banks
- 19 of the top 20 telecommunications companies
- All of the top six airlines
Specific clients include eBay, Ford Motor Co., 3M, Philips, PayPal, Cisco, Warner Home Video, Xcel Energy, Continental Airlines, Volvo, and Comcast. Finally, Teradata has received many honors. These include recognition as a leader in the big data solutions space (Forrester Research); as a member of the prominent Dow Jones Sustainability North America Index; and as a leader in Gartner’s 2015 Data Warehouse and Data Management Solutions for Analytics Magic Quadrant.
Teradata’s main channel is its direct sales team, through which it acquires most customers. That said, in select situations it sells its products/services through third-party channels such as distributors and resellers. The company promotes its offerings through its website, social media, webinars, direct marketing, and attendance at conferences, forums, summits, and trade shows.
Teradata’s customer relationship is primarily of a self-service nature. Customers utilize the service through the main platform while having limited interaction with employees. The company’s website includes a “Resources” section with an extensive and varied selection of customer aids. These include analyst reports, articles, best practice guides, brochures, case studies, datasheets, demos, eBooks, executive briefs, infographics, podcasts, studies, videos, webcasts, and white papers.
Despite this orientation, Teradata’s customer relationship also includes a strong personal assistance component. The company offers phone and e-mail support. It also provides the following training options:
Teradata Education Network – Customers can learn how to better use the company’s products and services through this program. Formats include classroom instruction, web-based training, and recorded and live webcasts.
Teradata Certified Professional Program (TCPP) – Customers can take instruction to gain expertise in use of the system so they can become certified in various company roles, such as sales and training. Instruction is provided by subject matter experts, exam development partners, and the Teradata education team.
Teradata’s business model entails producing software and maintaining the SaaS version of its platform. The company sources hardware components from various suppliers and utilizes Flextronics International for the assembly and configuration of the components.
Teradata maintains the following strategic partnerships:
Alliance Partners – The company collaborates with independent software vendors (ISVs) to develop applications and tools that incorporate Teradata technology. Partners include many top firms in the big data, data acquisition, business intelligence, and marketing applications sectors.
Systems Integrators – The company works with a range of systems integrators and consultants that are involved in the implementation and integration of Teradata data platforms and analytic/marketing applications for their joint clients. The arrangement facilitates an exchange of knowledge and allows the partners to become better versed in the use of the technology. Specific partners include Deloitte, Accenture, IBM Global Business Services, Cognizant Technology Solutions, Wipro Limited, and Capgemini.
Teradata’s main resource is its proprietary software platform, used by 2,600 clients. Its most important human resources are its research and development staff members, who engage in continuous improvement of its products and services and are spread out in numerous facilities globally. The company also depends heavily on its sales/marketing, customer support, and training staff. Lastly, Teradata places a high priority on its intellectual property, and owns 700 patents in the U.S. as well as 48 patents in foreign locations.
Teradata has a value-driven structure, aiming to provide a premium proposition through frequent offering enhancements and personal service. Its biggest cost driver is sales/marketing expenses, a fixed cost. Other major drivers are in the areas of research and development and administration, also fixed costs.
Teradata has two main revenue streams:
Product Revenues – Revenue generated from the sales of its analytic data solutions (including hardware and software) and its marketing applications.
Service Revenues – Revenue generated from support and business consulting services that enable customers to generate more value from the use of their products.
info: Viktor earned a B.A., B.S., and MBA in Accounting from the University of Utah. He previously served as Chief Financial Officer, President, and CEO of American Stores Co. He is a director of Service Corporation International and serves on a number of boards.
info: Stephen earned Bachelor’s degrees in Computer Science and Electrical Engineering at University of California, Berkeley, Master’s and Ph.D. degrees at MIT, and an MBA at Harvard. He previously founded three startup companies in the database space.
info: Bob earned a B.S. in Finance from Providence College. He previously served as Chief Marketing and Information Officer and Co-President of Teradata and held management roles at NCR. He heads the marketing, IT services, and operations areas at Teradata.
info: John earned an MBA from Western University. He previously served as VP of Corporate Development at Teradata and has held numerous management positions in sales, finance, and professional services. He leads company transformation strategy.
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