teradata - a whole world of solutions

Teradata Highlights

• Teradata Corporation> Global Leader in Enterprise Data Warehousing and Analytics

– EDW/ADW Database Technology– Analytic Solutions– Consulting Services

> Positioned in Gartner’s Leaders Quadrant in data warehousing since 1999

• U.S. publicly-traded software company> S&P 500 Member> Listed NYSE: “TDC”> NYSE Arca Tech 100

• Global presence and world-class customer list> Over 1,000 customers> More than 2,500 installations

• 7,000+ associates

Experienced LeadershipMichael F. KoehlerPresident and Chief Executive Officer33 years with Teradata/NCR

Rocky J. BlantonPresident, Americas Region26 years with Teradata/NCR

Stephen BrobstChief Technology Officer9 years with Teradata/NCR

Todd B. CarverVP, Deputy General Counsel and Chief Ethics & Compliance Officer23 years with Teradata/NCRAlan ChowChief Customer Officer28 years with Teradata/NCR

Saundra D. DavisVP, Human Resources23 years with Teradata/NCR

Robert E. Fair Jr.EVP, Global Field Operations24 years with Teradata/NCR

Scott E. GnauChief Development Officer13 years with Teradata/NCR

Stephen M. ScheppmannEVP and Chief Financial Officer21 years CFO experience

Peter HandPresident, APJ29 years with Teradata/NCR

Daniel L. HarringtonEVP, Technology and Support Services23 years with Teradata/NCR

Bruce A. LangosChief Operations Officer32 years with Teradata/NCR

Darryl D. McDonaldChief Marketing Officer27 years with Teradata/NCR

Laura K. NyquistGeneral Counsel and Corporate Secretary23 years with Teradata/NCR

Hermann WimmerPresident, EMEA Region12 years with Teradata/NCR

Robert A. YoungVP, Financial Planning and Operations30 years with Teradata/NCR

The Companies Who Operate With the Greatest Intelligence and Speed Will Win

Teradata Vision and Mission

• Vision: Active Enterprise Intelligence – enabling companies to integrate data from across the enterprise and extend intelligence to front line workers, suppliers, and customers. Faster, smarter, and more decision makers to gain competitive advantage

• Mission: The best data warehouse foundation and analytical solutions to enable customers to deliver on the promise of Active Enterprise Intelligence

Teradata Q2 2010 Financial Performance

Q2 2010 Results• $470M Revenue, up 12%

> Product revenue increased 21%• $106M Operating Income, up 26%• EPS of $0.44 vs. $0.36 in Q2 2009• Non-GAAP EPS* of $0.46 vs. $0.38

> Increase of 21%• Record operating income, operating

margin and gross margin rates

$421 $470

2009 2010

Operating Income2010 Full Year Guidance• Revenue to increase 8-10 percent• EPS $1.60 - $1.70• Non-GAAP EPS* $1.69 - $1.79• Increasing expectation for revenue

growth and EPS to “high-end” of guidance ranges

Revenue

$788$899

2009 2010

Q2 YTD

$84$106

2009 2010

$144

$192

2009 2010

Q2 YTD

* Reconciliations of the differences between GAAP and non-GAAP measures are available on the Investor page at www.teradata.com/investor.

5 > 2009 FORTUNE Global Rankings

70% of Top Global Retailers

100% of Top Global Telco Firms

83% of Top Transportation/Logistics Firms

100% of TopGlobal Airlines

80% of TopGlobal Commercialand Savings Banks

Teradata’s Global Industry Success

• Leading industries> Banking/Financial Services > Insurance and Healthcare> Manufacturing > Retail> Telecommunications> Transportation Logistics> Travel > Utilities & Government > Media & Entertainment

• World-class customer list> More than 1,000 customers> More than 2,500 installations

6 > 04/23/23

Leadership and Growth• Revenue and Operating Income

Growth• EPS Growth• $1.762B Revenue in 2008• Competitive Win Rate Increase

Independence Leads to InnovationSince October 1, 2007

Platform Family• Teradata Active EDW• Teradata Data Warehouse Appliance • Teradata Extreme Data Appliance • Teradata Data Mart Appliance 551• Data Mart Edition (software only)

Major Software Releases• Teradata Database 12.0• Teradata Database 13• Teradata Viewpoint• Teradata Data Mover• Teradata Multi System Manager

Active Enterprise Intelligence™

• Strategic Intelligence• Operational Intelligence• Web Services Integration• Teradata Developer Exchange

Innovation

• Teradata Virtual Storage• Solid State Drives• In-Database Geospatial

Partnerships• SAP• SAS In-Database Data Mining• Oracle BI & DI• IBM BI & DI• Microsoft

Analyst Support• Gartner Data Warehouse Magic

Quadrant Leader• Morgan Stanley• Forrester Wave Leader (DW)

New Solutions• Teradata Accelerate Program• Teradata Viewpoint• Teradata Integrated Web Intelligence

Gartner Magic Quadrant for Data Warehouse DBMS, 2009

Teradata Is the Clear Data Warehouse Leader

The Magic Quadrant is copyrighted 23 December 2008 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Teradata Customer AwardsJanuary – September, 2010

Gartner BI Excellence Awards> JD Williams honored in BI EMEA awards

Gartner/1to1 CRM EMEA> Maybank honored for “customer

experience”

Computerworld Honors Program> Express Scripts and a major hospitality

customer named laureates> Station Casinos a finalist

SAP Pinnacle Awards> Teradata a finalist for Partner of the Year

Best IT Implementation of 2009> Bank of Shanghai awarded Best IT

Implementation of 2009

GSA’s Interagency Resources Management Conference Awards (IRMCO)> CMS won for its dashboard; including

Teradata

Asian Banker Technology Implementation Award 2010> Maybank and Teradata are winners

for Best CRM Project

CRM Council, Foundation of Korean Information Industries> Standard Chartered First Bank won

Grand Prize in 2010 Customer Centric Management Awards, June 22

TDWI Best Practices Awards > Telenor Pakistan won in Enterprise

BI category

CIO 100 2010 Awards> Nationwide a winner

Excellence.Gov Awards> USAF a finalist

Government Computer News Awards> CMS a winner

Computerworld Best Practices in BI & Analytics> Sabre won “Driving Process Change with

BI” category

InfoWorld Green 15> Teradata nominated

Informatica Innovation Awards> Cabela’s, Vivo are finalists

Teradata Awards and Recognition OverviewJanuary – September, 2010

Teradata Marketing Wins• International Association of Business Communicators (IABC) Awards

> Peer Advantage> Teradata Magazine> Accelerate Direct Marketing> Platform Family Campaign

• 2010 Direct Marketing Association International ECHO Awards> Teradata Accelerate Direct Marketing Campaign a finalist> Awards to be announced at gala on October 12

Other Recognition• InformationWeek Strategic Top Ten – Teradata #7• Teradata named “one of the world’s most ethical companies” by

The Ethisphere Institute• First participation in Fortune’s “Most Admired Companies” survey• Teradata #17 on “Information Management 50”• Intelligent Enterprise “Dozen Most Influential Companies” for 8th year• Teradata recognized for BI and demand data analytics in annual

Consumer Goods Technology Readers’ Choice Awards• Teradata on InformationWeek 500 list for third year• Teradata named to Dow Jones Sustainability Index on first try

InformationWeek’s Top 10 Most Strategic Vendors

“ [Teradata] is unbelievably good and has been a big help to us.”– Patrick Byrne, CEO, Overstock.com

“The smallest among our ranked suppliers, with annual revenue of $1.71 billion (slightly below VMware’s $2 billion), this former NCR unit is nonetheless among the most strategic. Marquee customers like Wal-Mart, Coca-Cola Enterprises, eBay, and Overstock.com attribute much of their success to the competitive intelligence they mine through their ‘partnership’ (and that’s the word they use most often) with this leading data warehouse and analytics software vendor.”

– InformationWeek

Source: “Down To Business: The 10 Most Strategic IT Vendors”, InformationWeek, Feb. 19, 2010

1. IBM2. SAP3. Microsoft4. Oracle5. Cisco6. Hewlett-Packard7. TERADATA8. VMware9. EMC10. Your Outsourcer

Teradata One of the World’s Most Ethical Companies

Many organizations sought to be on the list – the top 100 were carefully selected from over 3,000. “The competition for the World’s Most Ethical Companies was the strongest it has ever been, with a record number of organizations vying for this distinguished honor,” said Alex Brigham, Executive Director of the Ethisphere Institute.

Ethisphere Institute Report Names Teradata One of the World’s Top 100 Most Ethical Companies

The Teradata Advantage

Integrated Business

7,000+ associates Consulting Services Sales Support Services Research &

Development Marketing Strategy & Planning

Integrated Solution

Implementation Services

Architecture Consulting Services

Business Consulting Services

Har

dwar

eSo

ftw

are

Pro

f.

Serv

ices

Storage

Server

Analytic Applications

Support Services

Database Software(inc. Tools and Utilities)

Logical Data Models

Enterprise Intelligence

“ The most meaningful way to differentiate your company from your competition, the best way to put distance between yourself and the crowd, is to do an outstanding job with information. How you gather, manage, and use information will determine

whether you win or lose." – William H. Gates III with FC Now, “The Differentiator,” The Fast

Company Weblog, February 8, 2005

The Basis for Competition

“Little Decisions Add Up”

“ We judge leaders by how well they make big, strategic decisions. But corporate success also depends on how well rank-and-file employees make thousands of small decisions.

> Do I give this client a special price?

> How do I handle this customer’s complaint?

> Should I offer a seat upgrade to this passenger?

By themselves, such daily calls – increasingly made with the help of enterprise decision-management technology – have little impact on business performance. Taken together, they influence everything from profitability to reputation.” – Frank Rohde, “Little Decisions Add Up,” Harvard Business Review, June 2005

“ The world is changing very fast. Big will not beat small anymore. It will be the fast beating the slow.”

– Rupert Murdoch, Chairman and CEO, News Corporation

“ A CEO who doesn’t understand technology can rest assured that competing CEOs will.”

– John Chambers, CEO of technology giant Cisco Systems, USA Today, March 19, 2007

“ The number one benefit of information technology is that it empowers people to do what they want to do. It lets people be creative. It lets people be productive. It lets people learn things they didn't think they could learn before, and so in a sense it is all about potential.”

– Steve Ballmer, Chief Executive Officer of Microsoft Corporation

Teradata is the Best EDW Provider

“ Business end users no longer want to learn about and use stovepipe tools and technologies to access, analyze and present information. Instead, they want to access, analyze and present information within and as part of their business work style and process.”

– “Predicts 2007: Pervasive Use of Business Intelligence Will Pressure Market,” ID Number: G00143838. Bill Gassman, Bill Hostmann, Betsy Burton, Colleen Graham, Gareth Herschel, Dan Sommer, Nigel Rayner. 22 November 2006

“ Teradata remains the preferred vendor for many organizations when it comes to the deployment of the largest EDWs for customers that require not just software and hardware but also a full menu of professional services – something that the smaller vendors are not able to supply at this stage in the game.”

– IDC, #202071, Dan Vesset, June 2006

Teradata Executive Overview

Operational Systems

Accts. PayableAccts. ReceivableInvoicingSales/OrdersFinance G/LCustomer SupportHRPayrollPurchasingOrder FulfillmentManufacturingInventory…

Decision Makers

Marketing

Supply Chain

Finance

Risk Management

Maintenance

Sales

Operations

Inventory

Call Center…

Proliferation of Data Marts has resulted infragmented data, higher costs, poor decisions

The Problem

Operational Systems

Accts. PayableAccts. ReceivableInvoicingSales/OrdersFinance G/LCustomer SupportHRPayrollPurchasingOrder FulfillmentManufacturingInventory…

Decision Makers

Marketing

Supply Chain

Finance

Risk Management

Maintenance

Sales

Operations

Inventory

Call Center…

Integrated data provides consistency of data,

lower costs, better decisions

EnterpriseData

Warehouse(EDW)

The Teradata Solution

Market BasketAnalysis

CustomerAnalysis

Sales Analysis Profitability+ + + + Inventory

AnalysisBusiness

Value

Data Mart Consolidation

EDW InvestmentTransaction

Data

CustomerData

ProductData

FinancialData

SupplierData

The Value of EDW

2%

48%

17%33% 81% say data has increased

over the past year

More Data

75% of decision-makers suffer from information overload

Decisions remain complex

2007

Information Overload

More Complexity

40%

2%58%

Less Complex

Same

More Complex

IncreasedSignificantly

Decreased a Little

Increaseda Little

Stayed theSame

Increasing Need for Enterprise Analytics

Source: 6th Annual Teradata Report on Enterprise Decision-Making, conducted by IDC, November 2007

25% 75%No Yes

Source: 6th Annual Teradata Report on Enterprise Decision-Making, conducted by IDC, November 2007

2.00

3.00

4.00

5.00

Importanceto Org

EffectiveUse in Org

Mean Scoresn=1,072

Important/Excellent

Unimportant/Poor

Q: In your opinion, how important to your organization’s decision making is access to real-time data and information? For this question, “real-time” is defined as data that is up-to-date within a few seconds to a few hours. Q: Does your organization have access to “real time” data and info to make decisions?

More “Real Time” Information Wanted

• 78% of orgs claim “real-time” data access> But a gap exists between “Importance” to Org and “Good”

use of that data within Org

Global Business Intelligence Need Validated

• Business Intelligence (BI) tools market will continue to grow at a compound annual growth rate of 11% over next 5 years.

• Most companies see need to expand use of BI, but also under see opportunity for improvement.> 73% say they have executive-level support for BI initiatives> Only 11% rated themselves as “excellent” in use of BI> Only 15% rated top management as “excellent” in

understanding the need for BI tools investment

Source: Making Business Intelligence Work report, conducted by IDC, June 2008

Barriers to Use of BI

• Business:> Lack of well-defined performance indicators> Turf wars among business units that don’t want to share data

• IT:> Employees fear being disintermediated by BI systems> Organizations confuse analysis with action; they do not use

results to make decisions/take action.

Source: Making Business Intelligence Work report, conducted by IDC, June 2008

High Performing BI Practitioners

• Higher competency in leveraging real-time information for rapid, fact-based decision making

• Greater level of urgency about combining structured data with unstructured content

• Ahead of peers in providing BI tools access to stakeholders (i.e. customers, partners) and operational/ customer-facing staff

• Stronger investment by upper management in BI • More rigorous about measuring financial return from BI

initiatives • Heavy reliance on BI systems

> 23% indicated their company would experience “immediate” negative impact if BI system was out of service versus 10% of all organizations surveyed

Source: Making Business Intelligence Work report, conducted by IDC, June 2008

Active Enterprise Intelligence

Intelligence + Speed = AEI• Intelligence – Treat information

as a strategic corporate asset – integrate data from across the enterprise for better decision making

• Speed – Extending that intelligence to more decision-makers – front-line workers, partners, suppliers and customers – to enable decision making at the right time and place

• More decisions, better decisions, faster decisions

Hundreds of Strategic Decisions

Hundreds of Thousands of Operational Decisions

Strategic Intelligence

Operational Intelligence

Source: “Competing on Analytics”, Thomas Davenport, Jeanne Harris

65%

36%

77%

40%

23%

8%

33%

23%

Have significant decisionsupport/analytical capabilities

Value analytical insights to a verylarge extent

Have above average analyticalcapability within industry

Use analytics across their entireorganization

High Performers Low Performers

Competing on Analytics = Performance

Global Leader in Enterprise Data Warehousing

• Teradata helps organizations make smarter, faster decisions that help them achieve competitive advantage

• Exclusive focus on data warehousing and enterprise analytics to enable organizations to leverage data as a strategic corporate asset for analysis and decision making

• High-performance parallel database technology, world-class scalable hardware

• Full suite of data management and analytical solutions

• Data warehousing consulting and support services

• Partnerships with key analytic technology providers and system integrators

The Teradata Difference

Raising Intelligence• Our people distinguish us• Our technology outperforms

every alternative• We’re sharply focused on

innovation• Our customers form a global

community of excellence• Our partners extend your

possibilities

Top Ten Reasons to Choose Teradata

1. A Single View of Your Business2. Smarter Strategic Decisions –

Faster 3. Front-Office meets Back-Office4. Proven Experience5. Strong Customer References6. Industry Expertise7. Powerful Technology8. Strong Partnerships 9. A Full Suite of Services10.Focus on Data Warehousing

Teradata Portfolio

Industry-Leading Technology

Technology Demands• Extreme scalability• Extreme performance• Extreme availability • Extreme data load

and access

Mission Critical 7 x 24

Teradata’sMulti-dimensional Scalability

Data Volume(Raw, User Data)

SchemaSophistication

QueryFreedom

QueryComplexity

QueryConcurrency

MixedWorkload

Query Data Volume

DataFreshness

Teradata can scale simultaneously across multiple dimensions. Driven by business!

Competition scales one dimension at the expense

of others.Limited by technology!

.Retail

.• Enterprise Offer

Management (CRM)

• Demand and Supply Chain Management

• Retail BI

FinancialServices and

Insurance• Enterprise Risk

Management• Active

Customer Management

• Capital Markets Foundation

Healthcare.

• Healthcare Intelligence Platform

. Manufacturing

.• Demand and Supply

Chain Management– DDSN– Supply Chain

Accelerator (SAP APO)

• Manufacturing Performance

– Warranty and Quality

Comm.Media and

Ent.• Network

Signaling Warehouse

• Media and Entertainment Foundation

.Travel

.• iPNR • Airline

Decisions• Tech Ops

MRO

.Transportation

.• High Performance

Postal (HPP)• Transportation

Decisions (TD)

Teradata Industry Programs

ERM for FSSungardMantasNorkomSAS

ERM for InsDFA

All ProgramsMeridian Technologies

Thomson Healthcare IntelimedixViPSEPICAccentureBearingPoint

Network Signaling Warehouse

Agilent10e

Enterprise Offer Management

CopientInfinian

DCMSAS

Retail BIMicroStrategy

Tech Ops MRO

AttensityFYI Corp.

High Performance Postal

AccentureHyperion

Transportation Decisions

Hyperion

Demand and Supply Chain Management

BristleconeSAP

Manufacturing Performance

Bearing PointAttensity

Industry Partners

Finance Performance ManagementDecision Experts:• AP/AR/GL• Fixed Assets• Inventory• Order Management/Procurement

Customer Management• Teradata Relationship Manager V6• CEM: Customer Experience

Management (Real Time)• MRM: Marketing Resource

Management (Workflow)

Demand Chain Management• Seasonal Profile• Demand Forecasting, • Promotions Management• Automated Replenishment/ Time Phased• Allocation

Teradata Horizontal Solution Programs

Data Warehouse Platform Services, Tools and Utilities

Industry Data Models, EDW Roadmap Models, Master Data Management

Hyperion/Oracle, SAP Assetlink, Infor, Attensity, NCR Customer Power, Copient

Vision Chain, Steelwedge, Descartes, SASSolution Partners

Enterprise Solutions

Oracle, SAP, SAS

Business Intelligence/Data Mining

Business Objects, Cognos, KXEN, Oracle, Microsoft, MicroStrategy, SAS

Application/Data Integration

Attensity, Business Objects, GoldenGate, IBM, Informatica, Oracle, SAP, SAS

Systems Management/Infrastructure

BEZ, CA, IBM, Protegrity

Horizontal Solution Partners (selected)

Industry Data Models, EDW Roadmap Models, Master Data Management

Data Warehouse Platform Services, Tools and Utilities

Teradata Solution Portfolio Framework

Teradata Analytical Solutions Leverage Enterprise Intelligence to Solve Business Problems

• Master Data Management > Create a single environment where

master data can be consistently described, used, synchronized and stored

• Customer Management > Build enduring, lasting and profitable

relationships with customers through superior customer management

• Finance and Performance Management

> Improve the speed and quality of financial reporting, reduce finance infrastructure costs, and proactively manage enterprise performance

• Demand Chain Management > Increase customer service levels

and sales while reducing inventory, by understanding and accurately predicting demand by store by item

• Supply Chain Management > Improve supply chain operations for

higher yields, improved customer service, reduced cycle times, and lower inventories

• Profitability Analytics > Make better decisions by leveraging key

customer data to calculate the true value of customers, products and services

• Teradata Integration Suite for SAP > Take advantage of certified integration

across the SAP NetWeaver stack, delivering seamless integration and leveraging analytical delivery tools already in place

Solu

tion

sIn

fras

truc

ture

Enterprise Applications

Broad, integrated applications covering multiple industries and functional areas.

Specialized Analytic Applications

Specific horizontal and vertical applications (e.g., supply chain management or retail merchandise management).

Analytic and Decision Making Services

Enterprise reporting and OLAP, visualization, rules engines, and data mining/modeling tools.

Middleware Enterprise application integration (EAI), and Application Servers.

Data Acquisition and Integration

Data extract, transform, and load (ETL); data profiling/quality, and change data capture tools (replication).

Systems and Infrastructure Management

Performance monitoring and usage capacity planning, security, and application/database development tools.

Teradata Partner Portfolio

39 >

Outstanding Growth in Teradata Certified Professional Program

• Industry standard certification program measures and validates technical abilities that help customers and partners take advantage of Teradata's powerful technology.

• Over 35,500 total certifications – 14,700 individuals certified worldwide.

– 1,750 individuals are Teradata Certified Masters– 45% of them are Teradata associates

– www.Teradata.com/Certification

> Consistent level of expertise> Increased ROI

> Quantifiable skill evaluation

Teradata Has the Consulting and Support Services to Generate the Highest ROI

Teradata Expertise• Enterprise Data Management

> Enterprise Architecture> Data Integration> Logical Data Models> Industry Expertise> Business Analytics

• Operational Excellence> System Performance> Availability> Business Continuity/

Dual Active> Upgrades and

Migrations

External Expertise• Teradata Certified Professional

Program – established in 1999> 18,500 Certified Individuals> 3,500 Teradata Certified

Masters• Teradata University Program• Partnerships with SIs and ISVs

> Global SIs: Accenture, BearingPoint, and Deloitte relationships strengthened

> Local SIs> SAP and Siebel Programs> Third-party industry

consultants

Teradata Confidential42 > 04/23/23

Teradata Petabyte Club

Customers with > 1PB of Spinning Disk(as of 9/9/2009)

> eBay> One of the world’s largest retailers> One of the largest US Banks> A leading telecommunications provider> A Fortune 100 technology company> One of the world’s top computer

suppliers

Outstanding Growth in Teradata Certified Professional Program (TCPP)

• Industry standard Certification Program measures and validates technical abilities that help customers and partners take advantage of Teradata's powerful technology> Consistent level of expertise> Increased ROI> Quantifiable skill evaluation

• Established in 1999, TCPP has award a total 50,900 Teradata Certifications - Teradata 12, V2R5 and V2R3 Certification Exam Tracks> 18,500 total individuals certified worldwide> 3,500 individuals are Teradata Certified Masters > 7,460 new Certifications awarded worldwide in 2009

• Innovation and Growth 2009 - 2010> New Teradata 12 Certification exams launched

www.Teradata.com/Certification

• Consistent level of expertise• Increased ROI• Quantifiable skill evaluation

Outstanding Growth in Teradata Certified Professional Program (TCPP)

• Industry standard Certification Program measures and validates technical abilities that help customers and partners take advantage of Teradata's powerful technology

• Established in 1999, TCPP has awarded a total 50,900 Teradata Certifications - Teradata 12, V2R5 and V2R3 Certification Exam Tracks> 18,500 total individuals certified worldwide. > 3,500 individuals are Teradata Certified Masters > 7,460 new Certifications awarded worldwide in 2009

www.Teradata.com/Certification

Dispelling The Teradata Myths!

Training Materials on Teradata-University

•Dispelling the Myths!>Presenter: Ed White, Director of Teradata Product

Marketing >Course #: 47184, (45 minutes)

– Description: This presentation will help you dispel the “Teradata Myths” that led to our high price perception. You will learn how Teradata’s price, total cost of ownership, and business value make Teradata the number one choice for analytics for customers of any size and need. Teradata’s platform family covers all market segments for data warehousing and can provide the solution that’s right for the customer while delivering the lowest TCO and highest business value.

Objective

Dispel the Myths• Myth – Any fictitious story, or unscientific account,

theory, belief, etc., usually spread by a competitor • Dispel – To cause to vanish, to drive away with facts

These myths are reinforced by

misleading claims from our competitors

Common Teradata “Myths”

• Teradata is not innovative• Teradata is expensive because

it is the “Gold Standard”• Only really big companies run

Teradata• Teradata is only for large-scale

enterprise data warehousing• Teradata maintains high prices • Competitors have lower TCO

than Teradata• Competitors are replacing

Teradata systems

Teradata Is Not Innovative

The only databasebuilt specifically

for MPP data warehousing

Data Warehousing DatabasesOLTP Databases

(with “bolt-on” DW features)

Built from inception for data warehousing

Teradata

Imitated but not Duplicated!

Teradata Innovation

A History of Vision and Market Leadership• Teradata invented data warehousing• We built the first data warehouse appliance

> Teradata Database Computer (DBC/1012) Fortune Magazine Product of the Year 1986

• We pioneered the EDW market• The first terabyte data warehouse was built on Teradata • The first petabyte data warehouse was built on Teradata • We pioneered the Active Enterprise Intelligence™ market• Leadership position of Gartner’s Magic Quadrant

since inception• Setting the industry vision for Cloud Computing and

Agile Analytics• We announced the Fastest Data Warehouse in the World, first

100% Solid State Appliance in 2009

Teradata 13

Powerfully Simple• Undisputed Best Database for Analytics

> Ranked #1 by Leading Industry Analysts> Easy to Manage > Highest Performance> Advanced Workload Management > Optimized for OLAP, Data Mining,

Geospatial• and a first for data warehousing:

• Teradata Virtual Storage – Automated Multi-Temperature

Data Warehousing• Temporal Coming Soon…

– Time Series Analysis

The Magic Quadrant is copyrighted 12/2009 by Gartner, Inc. and is reused with permission. The Magic Quadrant is a graphical representation of a marketplace at and for a specific time period. It depicts Gartner's analysis of how certain vendors measure against criteria for that marketplace, as defined by Gartner. Gartner does not endorse any vendor, product or service depicted in the Magic Quadrant, and does not advise technology users to select only those vendors placed in the "Leaders" quadrant. The Magic Quadrant is intended solely as a research tool, and is not meant to be a specific guide to action. Gartner disclaims all warranties, express or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Teradata – We Are “The Gold Standard”

Gartner Magic Quadrant 2009

“ Teradata’s solutions, which include the data warehouse platform, data models and professional services dedicated to data warehousing, set it apart from the rest of the market.”

Forrester Wave – More Analyst Proof

“ Teradata provides the most scalable, mature, and flexible EDW solution portfolio on the market, and through its recently released 2550 and 1550 platforms offers an increasingly cost-effective portfolio for diverse customer requirements.”

– Forester wave TM: Enterprise Data Warehousing Platforms 2009

“ [Teradata] The smallest among our ranked suppliers, with annual revenue of $1.71 billion, is nonetheless among the most strategic. Marquee customers like Wal-Mart, Coca-Cola Enterprises, eBay, and Overstock.com attribute much of their success to the competitive intelligence they mine through their ‘partnership’ (and that’s the word they use most often) with this leading data warehouse and analytics software vendor.”

– InformationWeek

Source: “Down To Business: The 10 Most Strategic IT Vendors,” InformationWeek, Feb. 19, 2010.

InformationWeek’s Top 10 Most Strategic Vendors

“ Teradata is unbelievably good and has been a big help to us.”

– Patrick Byrne, CEO, Overstock.com

Teradata Must Be Expensive Because It Is The “Gold Standard”?

• We are the “Gold Standard” but…• Our systems are priced to be competitive with our

primary competitors in each market segment including:> Hardware> Storage> Database> Maintenance and Support> Software Subscription> Consulting

Teradata’s Pricing Strategy

$40KIf you already have an Intel® Server, you can start with the Teradata Data Mart Edition for only $40K (U.S. list price for a dual core Teradata Data Mart Edition based on Accelerate Program Discount)

$16.5KTeradata Extreme Data Warehouse Appliance is priced at only $16.5K/TB (U.S. list price)

$150KThe Teradata Data Mart Appliance starts at only $150K (based on Accelerate Program Discount)

Under $1MGet a complete, scalable 6TB Teradata data warehouse solution for less than $1M, which includes Implementation Services, 2580 Data Warehouse Appliance, Informatica ETL tool, and your choice of leading business intelligence tools

Priced to Compete…

“ Teradata allows customers to engage in several market microtrends. With the publication of lower pricing and greater discounts, it has addressed increased pricing pressure in the market.”

– Gartner 2009 Magic Quadrant for Data Warehouse Database Management Systems

Gartner on Teradata Pricing

Price Per Terabyte

• The industry has conveniently adopted Price Per Terabyte as the de-facto pricing metric> It’s a common metric to evaluate data warehouse systems> It’s easy to calculate and understand

• It’s not a good pricing metric> It’s a “storage metric” not a “capability metric”> It doesn’t account for performance, manageability,

availability, scalability, investment protection, etc.• It should be a consideration, but not an important

purchase criteria

• Was price per square foot the primary purchase criteria for your home?

• Why would you buy your data warehouse based on a price per terabyte then?

Which System is More Expensive?

Teradata Active EDWPrice = $3,500,000

Price/TB = $175,000

AppliancePrice = $700,000

Price/TB = $35,000

20 Terabyte System Example

Price Per Terabyte

$0

$50,000

$100,000

$150,000

$200,000

Price/TB

Teradata EDW

Appliance

Price Per Application, Price Per User

Teradata Active EDWPrice = $3,500,000Price/TB = $175,000# of Apps = 30# of Users = 1,200

Cost Per App = $117,000Cost Per User = $2,917

AppliancePrice = $700,000Price/TB = $35,000# of Apps = 2# of Users = 50

Cost Per App = $350,000Cost Per User = $14,000

20 Terabyte System Example

Which System is More Expensive?

Teradata Active EDW Is Less Expensive

20 Terabyte System Example

Price Per Application, Price Per User

$0

$50,000

$100,000

$150,000

$200,000

Price/TB

Teradata Active EDW

Appliance

$250,000

$300,000

$350,000

Price/App Price/User

Look beyond price per Terabyte!

Teradata Active EDW 5600 Capabilities

Ease of UseIntelligent Scan

Data Model Flexibility

Multiple Applications

Integrated Data

Query Concurrency

Consistent PerformanceIn-Database Analytics

Query Freedom

Multi-Temp

Investment Protection

Availability

Mixed/Active Workloads

Data Freshness

Agile Analytics

Data Scalability

Active EDW 5600

Not an “Apples-to-Apples” Comparison

Active EDW vs. Data Warehouse Appliance

Ease of UseIntelligent Scan

Data Model Flexibility

Multiple Applications

Integrated Data

Query Concurrency

Consistent PerformanceIn-Database Analytics

Query Freedom

Multi-Temp

Investment Protection

Availability

Mixed/Active Workloads

Data Freshness

Agile Analytics

Data Scalability

Data WarehouseAppliance 2580

Only Really Big Companies Run Teradata

Annual Revenue of Teradata Customers

35% Less Than $1 Billion Revenue

Greaterthan$5B

(25%)

$1B-$5B(45%)

$1B-$5B(45%)

Lessthan$1B

(35%)

Teradata – For Companies of All Sizes

“ I never thought we’d be able to afford Teradata.”

– Kevin Baartman, VP of Information Services, Lund Food Holdings Inc., a 21-store upscale grocery chain, Teradata Magazine, Vo. 8, No. 3

Teradata – For Companies of All Sizes

• For every Bank of America> There is also Toho Bank, St. George

Bank, Shikoku Bank, Bank of New Zealand, and Standard Bank of Russia

• For every SuperValu> There is also Cabella’s, Applebees,

Hallmark, Haggen Foods, Giant Tiger, and Lund Foods

• For every Harrah’s> There is also Silverton Casino and

Mohegan Sun• For every Nationwide

> There is also Alfa Insurance, Harvard Pilgrim Healthcare, and Corona Direct N.V.

Teradata is Only for Large-Scale Enterprise Data Warehousing

Data Warehouse Market Segmentation

Enterprise Data Warehouse

Active Data Warehouse

Low

Extreme

Low ExtremeData Volumes

Com

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Data Warehouse Market Segmentation

Enterprise Data Warehouse

Active Data Warehouse

Low

Extreme

Low ExtremeData Volumes

Com

plex

ity

– Nu

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ExtremePerformance

ScalableData Mart

100XData Volumes

General-PurposeData Mart/Data

Warehouse

Teradata – Platform Family Covering All Market Segments

Enterprise Data Warehouse

Active Data Warehouse

Low

Extreme

Low ExtremeData Volumes

Com

plex

ity

– Nu

mbe

r of U

sers

, Dat

a In

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Data Warehouse Appliance

Extreme Performance Appliance

Data Mart Appliance

Extreme Data

Appliance

Active Enterprise

Data Warehouse

5600Extreme

Performance

ScalableData Mart

100XData Volumes

General-PurposeData Mart/Data

Warehouse

Teradata Maintains High Prices

While database functionality has increased

Pushing the Envelope on Price/Performance

• Over the past five years, on an equivalent performance basis, the price of Teradata Active EDW system performance has dropped from $1M to less than $300K

List

Pri

ce fo

r Eq

uiva

lent

Per

form

ance

Price for a Teradata Performance Unit

201020092008200720062005(000s)

$1,200

$1,000

$800

$600

$400

$200

$0

5400

5450

55005550

55555600

Teradata Pricing Scorecard

70% price decrease over

the last 3 majorplatform generations

System Performance Up ~220%

New Database Functionality

Automatic, Built-In Core Database/ Optimizer

Advancements

Intelligent Scan

Elimination

Native Geospatial

SQL ExtensionsIn-Database Data Mining

Granular Performance Management

Viewpoint

Improvements over the last three major database releases

While Database Performance and Functionality Has Increased

Teradata Is Costly and Complex To Manage

• No optimizer hints needed• No need to manage parallelism• No need to manage physical computing

nodes• No need to manage physical disk

subsystem • No re-orgs needed• No index rebuilds needed• No partitioning or re-partitioning required• No detailed space management needed• No memory/cache management needed• Simple database and table definition• Minimum ongoing maintenance • Advanced workload management• Built-in high availability and failover

TeradataSelf-

Managing File

System

Tables

Tablespace

Logical Vol

Files

File System

Disk Group

Teradata Database does most work automatically!

Easy to Manage

Customers Say … It’s Easy to Manage

“ I would love to say that I spend half my time administering the Teradata data warehouse, because when you consider the EDW's importance to the company, it should be half my time. But the truth is that I spend a lot more time maintaining other databases and performing other aspects of my job than I do working on the Teradata data warehouse.”

– Sandy Rumble, Data Center Manager, PING, Inc.

“ The Teradata data warehouse environment was designed to be self-managing, and most common DBA tasks are automated. In fact, we had less than one full-time DBA assigned to keeping the Teradata systems running. The data warehouse supported multiple applications and users and contained more than 6TB of data. Most of the production DBAs work was proactive rather than reactive. And as we scaled users and applications, the administration of the system remained relatively constant.“

– Jim Blair, Data Warehouse Consultant and Former Sr. Manager of Data Warehouse Operations at a Major Healthcare Company (Now A Teradata Employee)

Customers Say … It’s Easy to Manage

Competitors Are Replacing Teradata

* Combined replacements of these competitors last seven years: DataAllegro, Greenplum, IBM, Microsoft, Netezza, Oracle

Number of Times Competitors Have Replaced Teradata

Customer Data Warehouse Systems*

Number of Times Teradata Has Replaced Competitive Data

Warehouse Customer Systems

Fewer than ten Teradata Replacements by Competitors*

200+ Competitive Replacements By Teradata

Worldwide Competitive Replacement Scorecard

Teradata vs. Competitors

Data Warehousing 2004-2010

Teradata 200+

Competitors<10

Competitive Scoreboard

Summary

Dispelling the Myths…

Myth FactTeradata is not innovative Teradata is the industry leader as

recognized by Gartner and ForresterTeradata is expensive because they are the “Gold Standard” Teradata is competitively priced to win

Only really big companies run Teradata 35% of Teradata customers have annual revenues less than $1B

Teradata is for large-scale enterprise data warehousing

Teradata has a platform family that covers all market segments

Teradata maintains high prices What cost $1M five years ago costs less than $300K today

Competitors have lower TCO than Teradata Teradata is easier and less costly to manage than other databases

Competitors are replacing Teradata customer systems

Competitors (combined) have replaced fewer than ten systems while Teradata has replaced more than 200 competitive systems over the past 7 years

Acquisition Cost

Acquisition Cost

Tota

l Cos

t of

Ope

rati

ons

Sys Admin

Integration Costs

Disruptive Upgrades

Competitors

Sys Admin

Incremental Upgrades

Teradata

Teradata’s TCO Advantage

• No System Integration Required> Simple to install> Faster time-to-value

• Lower Cost of System Administration> Easier to manage> Requires fewer DBAs

• Superior Investment Protection> Scalable, modular growth> Incremental upgrades

More applications equal more value with an integrated data warehouse environment

$0m

$10m

$20m

$30m

$40m

$50m

$60m

$70m

1 2 3 4 5 6 7 8 9 10Number of Applications

COST

VALUE

Teradata Active EDWTeradata DW Appliance

Total COST of Ownership

Teradata Active EDWTeradata DW Appliance

Total VALUE of Ownership

Teradata’s Value Advantage

• Teradata’s integrated data warehouse delivers Lower TCO and Greater Value as the number of applications grows

Teradata On The Extremes

• Extreme Performance> Millisecond operational query responses> Service level attainments >99%> 1M queries per hour

• Extreme Scalability> True “slope of 1” linear scalability> 10,000 concurrent users per day> 6 customers in “The Petabyte Club”

• Extreme Value> AT&T - $1B business value from their Business Intelligence DW> 6 U.S. states – combined $1.5B improved tax revenue> Continental Airlines - $500M revenue/savings> Single queries worth $10M

Teradata Customers Drive Extreme Value

AT&T Wins 2009 Computerworld “Enterprise Intelligence” AwardCompany Honored for Top Project in Customer Intelligence and Management Category

Because the solution touches nearly every area of the business, it has been responsible for saving the company more than $1 billion since its initial implementation.

– AT&T- News Room; October 29, 2009

From “Worst to First”Continental Airlines uses active enterprise intelligence to minimize the impact of irregular operations, such as canceled, diverted or delayed flights. Continental has seen a $500 million increase in revenues and cost savings in the last six years. The carrier has also gone from the worst-rated airline to the top-rated, with improved customer satisfaction and loyalty year after year.

– Teradata Magazine-September 2007

Operating Costs> Simple to install> Easy to manage> Lowest overall Total Cost of Ownership> Investment protection

as you grow

TCOTCA + Operations

Added Value> Fast time to market> Industry expertise> Industry data models> Value of integrated

data> Strategic and

operational intelligence> Industry leading

customer references

ValueTotal Value Opportunity

System Costs> Competitive in all

market segments> Right-sized platforms

and price points to fit any budget

PriceTotal Cost of System

Acquisition and Maintenance

CompetitiveAcquisition

PriceTeradata Customer Advantage

Teradata

Competitive Prices, Lower Cost, Higher Value

Teradata Summary

• The Undisputed Gold Standard For Data Warehousing• At Competitive Prices• Driving The Highest Business Value

We are not considering Teradata because you are too expensive…

Objection Handling

Handling the Expense Objection

• Expensive Relative to What?> Competitor Alternatives?

– We are priced to compete vs. primary competitors in all market segments

> Past Pricing or Maintenance?– We’ve lowered prices by

~70% over the past three major platform generations– 40% in the last two years alone

– Maintenance rates and options are priced on top of competitors as a % of net purchase price

> Business Value Delivered?– Teradata customers drive superior ROI from their systems– Some even measured their benefits in Billions

OK – Prove It!

Next Steps• Peer Advantage Reference Calls

> Talk to our customers to validate the value they drive with Teradata – Teradata customers conduct more

than one thousand reference calls each year

• Validate with our TCO Analyzer> Use our tool (either assisted or unassisted)

to input your specific variables and assumptions

• Business Impact Modeling > Teradata can help you conduct

a formal Business Impact Model specific to your industry and business