Teradata's India Plans

by Sonal Desai    Feb 15, 2007

Vodafone may be Teradata’s first major client in India in the telecom sector, after the company recently announced a split from parent NCR.

Sanjay Dennis Samuel, VP, Teradata division, SEA & India today claimed that Vodafone would deploy its services for data warehousing in India.

Samuel said, “We provide data warehousing services to Hutch, and to all the Vodafone office globally. Going by the track record, we hope to provide services to the telecom major even in India. However, there is no written commitment from Vodafone to that effect as of now.”

On the company’s recent alliance with Microsoft, he informed that Microsoft would adopt Teradata’s warehousing service across the enterprise, across the world. He averred, “However, it will not replace its SQL server. SQL would continue to maintain data of Microsoft’s individual departments.”

The company today took its warehousing process two steps forward and launched Link to Operations Systems (LOS) and Automated Linkages (AL), as a part of its business strategy to provide end to end solutions for data warehousing.

“By this launch, we have taken the mechanics of BI tools ahead of its report, analyze and predict pattern. These two enhancements will enable enterprises deliver information in a timely manner. It will integrate organizations at 360 degree and enable them to work as a whole mechanism,” said Samuel.

On the split between NCR and Teradata, he said, “Both would be independent and separately listed companies. Teradata is a $1.5 billion company and expect to grow at a rate of 20% over the next five years. Both the companies would have a greater focus on their respective markets and also a direct access to the capital markets.”

To a query on how would Teradata manage data of merged or acquired companies, with two seperate data warehousing service providers, he replied, “We would underline the data architecture into a single layer. We would integrate the data system of the second service provider on our own or companies could merge the two databases. We can provide backward integration upto four generations.”

When asked, whether the split would also lead to dilution, he stated, “We have 850 customers worldwide. We have been receiving a positive feed back.”

Spelling out India strategies, Samuel affirmed that India was a key market. “The company earned 300 % of its revenues from India as against 200 percent from other ASEAN countries. We foresee a triple digit growth in India over the next 3 years,” he added.

Teradata already has an R& D center in Hyderabad, a global consultancy center in Mumbai, besides field operations offices in Mumbai and Delhi. “We are looking around Bangalore for another field operations office, whose announcement would be made in the next 12 months. Also, we plan to tap the telcom companies, banks and the large retail boom in India,” informed Samuel.

The company sees promise in the retail sector with global majors like Wal-Mart (tie-up with Bharati), Tesco, etc planning major forays here.

At present, Teradata has six customers in India including State Bank of India, Airtel and ICICI. Though the company wants to acquire more customers here, it was hesitant to disclose investments earmarked for the Indian market.

Even as it has partnerships with Wipro, TCS and Satyam for consultancy services, it is also considering other partnerships for resale, outsourcing and ISP data center services. The company is also strategising a distribution module for India, and may consider the resale or the ISP models for the same.

Samuel, however maintained that these discussions were at a preliminary level.

He added, “Though Teradata would focus on the large enterprise in the beginning, it would also have specific strategies for the small and the medium enterprise as a part of our next phase of evolution.”

To a query whether Teradata was ready for a sell-out, Samuel concluded, “Who knows. But the valuation would be between $4b and $7b.”