Teradata Transition On Course in Steady Quarter, With Exciting New Offerings Ahead

How good was Teradata’s Q3? Not bad, but no improvement over a so far lackluster year, which nonetheless has seen the stock  price rise steadily. In 2008,  the striking rise in Teradata’s Linux revenue growth was matched only by the corresponding drop in its Unix revenue, and that “steady as she goes” performance continues through its still unevenly applied OS transition. In Q3, revenues were down a little (3%) year over year, and margin was flat (down 0.6%). YTD product revenues are down 11%.  Service revenues were up 5% for the quarter but only 2% YTD.  Still, net income rose 5%, in part because of strong expense controls. Since early 2008, Teradata has lost a little momentum through a difficult economy compared to its rivals at Oracle and IBM. Its next transition – after independence from NCR and the OS shift – is a product portfolio change catalyzed by the growth of appliance competitors like Netezza. So far, Teradata has managed to drive the product changes into the market well, claiming 65% of its appliance sales are new names. The hot new all-SSD Extreme Performance Appliance is now coming on-stream, and will create a new category advantage if, as Teradata believes, there are customers willing to pay for its spectacular performance. Read more of this post

Oracle on Database: It’s On. And They’re Not Kidding.

Oracle is the company that led the industry into making RDBMS the data persistence vehicle of choice, and though its flagship is still Number One, many other topics floated around as 35,000 people attended Oracle Open World (OOW) in San Francisco recently. The spotlight stayed firmly planted: “What will Larry say about clouds/IBM/Fusion apps?”; Marc Benioff and Larry; Arnold and Larry. But if there’s anything Larry Ellison is passionate about, even as he sets his sights on IBM (hardware) and SAP (apps) – his two most important competitors, he said at the Churchill Club recently – it’s database, and he’s energized by the appliance opportunity. Andy Mendelsohn, SVP of Database Server Technologies put it simply in a conversation: “the only product Larry has spoken of in the last 3 earnings calls is Exadata.” He is more involved than in recent years, and that means one thing: everyone else had better watch out. What analysts learned about the new release makes that very clear: Oracle has been busy, and there is a lot of exciting new technology coming. Read more of this post