Tera-Tom here!  Goldman Sachs, the world’s largest investment bank, recently downgraded Teradata stock to “Sell”.  According to Goldman Sachs analyst Greg Dunham, they’ve lowered their revenue growth estimate from 8% to 4%, and have adjusted Teradata’s price target from $48 per share to $36 per share for 2014.  The share price of Teradata has dropped 26% over the past 3 months, which means Teradata has lost around a billion dollars in market capitalization in a mere 12 weeks.  And Goldman Sachs doesn’t think things will get better for years to come.  Why?  According to Goldman Sachs, it’s not because Teradata’s offering is poor, but it’s actually because of all the other superb options out there!

While Goldman Sachs is downgrading Teradata, I am upgrading them.  Customers who have Teradata systems or customers who are considering purchasing Teradata systems have made a very wise decision.  The product has never been stronger, and I recommend Teradata systems as an excellent backbone to any enterprise data warehouse strategy.

The problem for Teradata is that other parallel processing vendors who entered the market 10 years ago are gaining momentum.  A decade ago, I contacted Netezza, and one week later I was having dinner with the CEO (Jit Saxena) and the Chief Technical Officer (Foster Hinshaw).  These two men are visionaries. Foster Hinshaw, a person I am proud to call a friend, explained in great detail how the Netezza architecture works and I told him then that Netezza was destined for greatness.  We reached an agreement to put the Nexus on Netezza.  IBM now owns Netezza.

I next met with Greenplum founders Scott Yara and CTO Luke Lonnergan and developed a great relationship with CEO Bill Cook.  These are some of the most creative minds I have ever met.  I became a big Greenplum fan and my team was given access to a Greenplum system where we certified Nexus on Greenplum.  EMC, the best disk drive player, now owns Greenplum.

I then met with the founders of DATAllegro, Stuart Frost and Mark Thacker, and it was one of the best experiences of my life.  We quickly came to an agreement that the Nexus would be bundled with all DATAllegro systems, and I was so impressed with their technology that I wrote a series of white papers touting the architecture. They were subsequently purchased by Microsoft, who implemented SQL Server as the underlying database to produce the new SQL Server Parallel Data Warehouse (PDW). It is one fantastic product.  How do I know?  I was able to strike a 3-year deal with Microsoft to have Nexus bundled with each Microsoft Parallel Data Warehouse (PDW) sale, and I personally watched them evolve that system to a world class level.

I have since been able to build a relationship with every vendor, and it appears that by the second quarter of this year, the Nexus will work brilliantly on every system in the world.  The Nexus is the answer for your enterprise data warehouse.  With Teradata or Netezza as the backbone, Nexus will unite all systems with one tool.  Now, users can query every system, load the ERwin logical model for every system, and soon will be able to join between every system in the enterprise.  The time for Nexus has come.

Congratulations to Teradata for producing such a fine product and congratulations to the many other friends and partners whose time has also come.

Please contact me or John.Nolan@CoffingDW.com to set up a demo today.  I look forward to hearing from you soon.

Sincerely,

Tom

Tom Coffing
CEO, Coffing Data Warehousing
Direct: 513 300-0341
www.CoffingDW.com
Email:  Tom.Coffing@CoffingDW.com

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