2024-04-09 06:00:00 ET
Summary
- The rise of cloud computing is undermining Teradata's business, with the company recently shifting its focus to the cloud to help offset on-prem losses.
- While the explosion in interest in AI could be considered a tailwind for TDC, the company faces tough competition in the cloud market from companies like Databricks, and Microsoft Azure.
- Teradata's valuation is relatively low, meaning that even modest success in the cloud could see the stock perform reasonably well.
Teradata's ( TDC ) business sits at the edge of potentially one of the most important technological trends of the 21st century, artificial intelligence. The company has been caught wrong-footed by the shift of data to the cloud, though, with its on-prem business contracting significantly. Teradata's recent pivot towards a focus on the cloud could help to stem the outflow, but I don't believe there is much to get excited about....
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Teradata: Yet To Stem On-Prem Losses