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Teradata (TDC) Expands Analytics Portfolio, Launches DataDNA

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Teradata (TDC - Free Report) recently launched the DataDNA, a new as-a-service offering that provides an automated view into data assets along with their usage and cross-platform data lineage.

The new service is powered by Vantage, Teradata’s multi-cloud data analytics software platform. It will enable transparency into data assets and their utilization so that customers can better understand the data flow and eliminate data redundancies.

It provides rapid new insights by simplifying IT ecosystems, reducing costs, reconciling data and processes across platforms and generating accurate change impact assessment.

DataDNA also facilitates accelerated migration to Vantage in the cloud, by helping customers identify data dependencies, data usage and data flow.

Coronavirus-Led Disruptions Hurt Consulting Business

Meanwhile, the company’s shares have dropped 18.7% year to date compared with the Computer-Storage Devices industry’s decline of 17.3%.

This underperformance can be attributed to the coronavirus-related headwinds in Teradata’s consulting business, mainly on activities that are conducted on-site.

Markedly, in the recently concluded quarter, the company’s revenues from the consulting business declined 28% (down 29% at cc) year over year.

Strong Demand for Data Analytics to Help Teradata Recover

Notably, since the outbreak of the pandemic, data analytics have become an extremely important tool to gain insights and better understand the dynamic global business landscape.

Further, Teradata cited Gartner’s data, per which, by 2023, the use of active metadata and machine learning for the automation of data management processes will reduce integrated data delivery time by 30%. This will give organizations access to data analytic insights faster.

Markedly, strong adoption of Teradata’s analytics platform, Vantage, by megadata customers with huge databases, drives expansion of the company’s user base.

However, the company’s focus on high-margin megadata customers is expected to hurt the profitability of the consulting business in the near term.

Zacks Rank & Stocks to Consider

Teradata currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader technology sector are Pure Storage (PSTG - Free Report) , Qumu Corporation (QUMU - Free Report) and Arrow Electronics (ARW - Free Report) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for Pure Storage, Qumu and Arrow Electronics is pegged at 20.3%, 15% and 8.5%, respectively.

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