Data warehousing and analytics is not a booming business, but it is doing a lot better than other sectors of the IT economy. Teradata is benefiting from the increasingly complex data types and sources that companies are chewing on to help drive new business and keep current customers happy.
In the third quarter ended in September, Teradata's hardware and software revenues grew by 27 per cent to $243m. Data warehousing appliances sales are still around five to 10 per cent of sales, the company said, and no customers have yet converted from appliances up to the full-tilt Enterprise Data Warehouse clusters.
Among new accounts, the appliance products sold by Teradata are being picked up by under half of the new customers. But as Mike Koehler, president and chief executive officer at the company, said in a conference call with Wall Street analysts, the appliances allow Teradata to chase new opportunities among smaller customers and for very specific niche data crunching needs.