Teradata vs. Snowflake

Teradata reported earnings and they talked about Snowflake. From the Conference Call:

“We were chosen ahead of Snowflake because of our low-cost price performance and our best bet technology, allowing this customer to meet its advanced analytics goals.”

“A North American-based global e-commerce marketplace recommitted to Teradata to modernize its analytics environment after it tested the cloud-native offering. Experiencing technical challenges and extended migration delays brought the customer to the realization that it would not achieve the business value they expected from its intended move to Snowflake”

What do you think about this?

Is Teradata a stronger competitor to Snowflake?

Last quarter they experienced strong growth for the public cloud offering: Public Cloud ARR of $106 million at the end of 2020 was a 165% increase from the prior year.

Here the link to the conference call: https://seekingalpha.com/article/4403703-teradata-corp-tdc-c…


Speaking ONLY of the cost of migration: it’s enormously time consuming and error prone to migrate from one system to another, especially from one competitor to another. It might go more smoothly if the two vendors willing to cooperate, but even then, they might not have all the resources or even documentation/technical knowledge to support the migration. You might lose information when you migrate. You might find out the missing pieces in the process too.

In my previous career I oversaw many migrations from other vendors to us and one migration from us to another vendor. They’ve (data migration) always been the most challenging aspect of a large project.

Without a substantial benefit to offset the huge cost of migration, most users will choose to stay put, especially when it’s a product that’s customer facing (meaning it’ll impact their customers experience, in the case of e-commerce).


We are an early user of snowflake, full disclosure. I think the takeaway (for me) is that teradata felt it necessary to explain why they beat this young upstart. They feel the heat!


I just can’t believe there’s a thread on Saul’s board mentioning Teradata - a massively powerful and complex / parallel database tech used at the enterprise level since the mid 80s. I know, they’re using Snowflake as a lever to gain eyeballs.

They mentioned two customer wins vs. Snowflake though, one of the largest airlines in the US and a large e-commerce player in the US. They do have a public cloud offering which they expect to grow triple digits this year (from a lower base than SNOW)