SAN DIEGO - Teradata Corporation (NYSE: NYSE:TDC), a cloud analytics and data platform provider, has announced an expanded Strategic Collaboration Agreement (SCA) with Amazon (NASDAQ:AMZN) Web Services (AWS).
This move aims to facilitate customer migration to the cloud, expedite data analytic ecosystem modernization, and enhance the realization of artificial intelligence (AI) opportunities. The partnership is set to unlock additional industry-specific use cases, particularly in generative AI, through the integration of more AWS services.
The renewed SCA builds upon Teradata's existing relationship with AWS, which includes integrations with Amazon SageMaker, a service that assists companies in developing, training, and deploying machine learning models. The Very Group, a digital retailer in the UK and Ireland, has leveraged Teradata VantageCloud on AWS to predict product demand for their extensive inventory, a system that integrates with Amazon SageMaker.
Chris Grusz, Managing Director of Technology Partnerships at AWS, expressed enthusiasm for the collaboration, noting the goal of providing customers with greater flexibility and reduced data preparation time for AI initiatives.
As part of the expanded agreement, Teradata VantageCloud, in both Enterprise and Lake editions, as well as Teradata AI Unlimited, will be available in the AWS Marketplace. This inclusion is expected to streamline customer experience by consolidating purchasing and contributing to AWS commitments.
The collaboration also promises industry cloud solutions that deliver meaningful business outcomes, with ready-to-use reference architectures and use case-specific recipes. These are designed to accelerate time-to-insight for customers in sectors such as Financial Services, Retail, Health Care, and Manufacturing.
Furthermore, the partnership is set to establish a foundation for generative AI analytics use cases through the integration of Teradata VantageCloud with Amazon Bedrock. This initiative aims to bridge the gap from proof of concept to production, enabling organizations to scale AI solutions across the enterprise confidently.
Michael Hutchinson, Chief Customer Officer at Teradata, highlighted the success in facilitating cloud migrations and transactions within AWS Marketplace, emphasizing the company's commitment to a cloud-first, customer-first approach.
The information is based on a press release statement.
InvestingPro Insights
As Teradata Corporation (NYSE: TDC) strengthens its cloud and AI offerings through a strategic collaboration with AWS, the company's financial health and market performance are critical factors for investors. According to real-time data from InvestingPro, Teradata stands with a market capitalization of $3.65 billion, reflecting its substantial size in the data analytics sector. Despite a challenging market environment, with the company's stock trading near its 52-week low, the InvestingPro Tips suggest a silver lining. Management's aggressive share buybacks and a high shareholder yield indicate a strong commitment to returning value to investors.
Moreover, Teradata is expected to see net income growth this year, which could be a promising sign for potential investors. The company's valuation also implies a strong free cash flow yield, which is often attractive to value-oriented investors. While Teradata is trading at a high Price / Book multiple of 27.04, suggesting a premium valuation, its PEG ratio of 0.61 points to a potentially favorable growth trajectory relative to earnings expectations.
For those interested in deeper analysis, there are additional InvestingPro Tips available for Teradata, offering insights such as the company's profitability over the last twelve months and its moderate level of debt. To explore these further, visit InvestingPro's Teradata page and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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