Why Teradata Announced the Big Data Partnership Acquisition?

Earlier in the series, we discussed market expectations from Teradata’s (TDC) soon-to-be-announced fiscal 2Q16 results. We also discussed the factors that weighed down Teradata’s stock. Increasing competition from Amazon’s (AMZN) RedShift led CLSA to downgrade Teradata from “buy” to “underperform.”

CLSA stated that “Customers like the company and the technology. However, Teradata’s reliance on large deals, perceived higher cost and perpetual license model are secularly challenged by the shift to subscription-based buying, and for lower-cost DWaaS offerings and open-source alternatives like Hadoop.”

It seems that Teradata took this information seriously. On July 25, 2016, Teradata announced the acquisition of Big Data Partnership to boost its open source analytics offerings.

Big Data Partnership is a United Kingdom–based big data solutions provider. Big Data Partnership’s expertise lies in disruptive technologies like Apache Hadoop. Apache Hadoop is gaining popularity in today’s “big data” world due to its ability to manage and process large volumes of unstructured data.

In its news release pertaining to the recent acquisition, Teradata stated that “Big data analytics services represent a fast-growing market valued at $40 billion in 2015.” It also stated that “Internet-of-Things sensor data and information streams from consumer technologies are fueling growth and spiking demand for multi-genre analytics, new data infrastructures and business models.”

Big Data Partnership will be integrated into the company’s “Think Big” consulting practice.

View more information: https://marketrealist.com/2016/07/teradatas-announced-big-data-partnership-acquisition/

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