Teradata confident following spin-off from NCR

Teradata says raising intelligence is key to winning in enterprise data warehouse market.

Newly-independent Teradata believes it is well placed to win a much higher share of the $19 billion global market for data warehousing now it is no longer part of former parent NCR.

Fresh from its flotation on the New York stock market yesterday - which marked at a return to public trading after 16 years as part of NCR - Herman Wimmer, European president of the company, characterised the demerger as positive for both companies.

"NCR can now concentrate on its market of self-service and we are free to concentrate on ours [enterprise data warehousing]," he said. The company's new tagline - "raising intelligence" - underlines its mission to help customers use data better, he claimed.

Analysts agreed that the split makes sense. "Teradata has always been about the hard core data warehousing and analytic areas," noted Forrester Research when the move was announced in January. "This allows both companies to focus in terms of what they're both good at."

"This is a logical step that will enable the two companies to better focus on their respective product strengths and which will be good for end-user organisations," added Ovum's Mike Davis.

Teradata starts its second incarnation as a public company with 5,500 staff and a customer base of 850 corporations worldwide. Its current market capitalisation stands at $5 billion (2.5 billion), which Wimmer said will be used to help drive investment into research and development and improving its field organisation.

The company also says it is unfazed by the recent entrance of Hewlett-Packard into high-end data warehousing, which was achieved partly by recruiting former Teradata management.

"It is a good sign that new players are entering this market - it validates our position," said Wimmer. "Of course we watch them very carefully - but there is room for further growth for everyone in this market."

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