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Teradata (TDC) Boosts Enterprise AI With DataRobot Integration

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Teradata (TDC - Free Report) recently announced the integration of the DataRobot AI Platform with Teradata VantageCloud and ClearScape Analytics. TDC aims to enhance enterprises AI capabilities by offering greater flexibility and scalability in building and deploying AI models.

The collaboration enables enterprise customers to import and operationalize DataRobot’s AI models within the VantageCloud analytics and data platform, facilitating faster data access and accelerated AI innovation.

The integration, available through ClearScape Analytics Bring Your Own Model (BYOM) capability, empowers data scientists to use their preferred tools and ensures secure, accountable and cost-effective AI model deployment across various environments, including cloud and on-premises.

Teradata Rides on Expanding Partner Base

The move bodes well with Teradata’s commitment to capitalize on strong demand through VantageCloud and ClearSpace Analytics solutions.

 

In first-quarter 2024, TDC saw significant growth in Cloud Annual Recurring Revenue (ARR), which reached $525 million and increased 36% year over year at constant currency (cc). The upside was driven by the strong adoption of Teradata’s cloud solutions, indicating increasing customer preference for cloud-based analytics and data management.

Expanding partner base that includes the likes of Alphabet’s (GOOGL - Free Report) cloud business, Google Cloud, Microsoft (MSFT - Free Report) , Anaconda and Amazon (AMZN - Free Report) has been a major growth driver.

In June, Teradata announced that it would offer Teradata VantageCloud Lake on Alphabet’s Google Cloud, featuring updates designed to leverage both Teradata and Google Cloud’s strengths to deliver Trusted AI with enterprise-scale expertise and technology.

The availability of Teradata VantageCloud Lake on Microsoft Azure is expected to expand clientele as it offers end-to-end support for AI and machine learning workloads, including generative AI and LLMs.

In May, Teradata — at Microsoft Build — announced that Teradata AI Unlimited was available in private preview in Microsoft Fabric, enabling frictionless, on-demand AI/ML workload access for exploring, discovering and innovating new use cases within the ecosystem.

TDC announced the renewal and expansion of its Strategic Collaboration Agreement with Amazon Web Services (AWS) in May, aimed at accelerating cloud migration, enhancing data analytics modernization and maximizing AI opportunities for customers.

TDC Q2 Prospect not so Rosy

Despite Teradata’s strong portfolio and partner base, on-premises erosion and elongated deal cycles have negatively impacted TDC’s top line.

The company’s shares have declined 19.8% year to date compared with the Zacks Computer & Technology sector’s rise of 25.5%.

This Zacks Rank #5 (Strong Sell) company reported a 2.3% year-over-year decline in first-quarter 2024 revenues, amounting to $465 million on a reported basis and a 1% decline at cc. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the second quarter of 2024 revenues is pegged at $447.58 million, indicating a 3.12% year-over-year decline.

For second-quarter 2024, non-GAAP earnings are expected to be between 46 and 50 cents per share. The consensus mark for earnings is pegged at 48 cents, which remained unchanged in the past 30 days.

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