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Teradata: more oversight means stronger growth

By Zhang Ran (China Daily)
Updated: 2009-06-15 08:07

Probably no software company is as successful as Teradata in serving China's banking industry.

Among China's 15 largest banks, including the "Big Five" and smaller joint ventures, 11 are Teradata customers, said Mike Koehler, president and chief executive officer of Teradata Corporation.

The world's leading data warehousing provider is even expanding its reach despite the financial crisis with new customers that include China's emerging city banks and insurers in second-tier cities.

"For banks and financial services, despite the crisis, data architecture integration and governance continue to be a priority due to the need for visibility of customers and products, risk management and cost reduction opportunities," Koehler told China Business Weekly during his latest visit to Beijing on late May.

Financial services have been the fastest growing sector for Teradata in the past two years. About 40 percent of the world's leading financial institutions are now Teradata clients, while in China its market share is as high as 80 percent.

Customers

Its major customers include the Industrial and Commercial Bank of China, China Construction Bank, Bank of China and Minsheng Bank.

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Koehler admitted that the recession may slow Teradata's growth, but said the financial crisis will have no major effect on the company's long-term development.

"On the contrary, since the credit crisis has calls for more regulation in the financial services industry, 'regulatory demands' bring new business to Teradata because they need a better information platform - there will be a need for better detail in information," said the CEO.

"Not surprisingly, particularly in these turbulent economic times, the overarching theme of 'business intelligence' will be to combat such errors and instead deliver greater business value," he said.

The chief executive added that Teradata is helping financial companies cut costs by implementing and optimizing their IT infrastructure.

"The current economic climate is an opportunity for companies around the world. Companies that make the best strategic decisions about where to invest and where to reduce costs can emerge stronger in the longer term," said Koehler.

The data warehousing firm held its ninth annual Teradata Universe conference in Beijing in May themed on how to better leverage information assets and make smarter, faster decisions during economic uncertainties.

In the current economic situation, deciding to hold this year's Teradata Universe could have been a tough decision since every company, even those doing well financially, is trying to cut costs.

But Koehler certainly did not think so.

China's market

"China market is important to us and certainly worth the investment. The event we are holding here is important to our customers for many reasons such as learning, training and sharing best practices," the CEO said.

Teradata, which has more than 25 years of experience and has implemented 2,000 data warehousing facilities, was smoothly spun off from NCR, the world's largest ATM company, in 2007.

"We had a successful and very productive first year as an independent company in 2008. We have a strong financial position, including attractive cash flow generation and no debt," Koehler said.

A great number of enterprises from various industries became Teradata customers after the spin off, including those in communications, finance, travel, manufacturing, retailing and healthcare. Clients now include Bouygues Telecom, HSBC, Hana Bank, Unicredit Group, InterContinental Hotels, Caterpillar and GM Daewoo.

In China, its new customers include China Telecom, Huishang Bank and Air China. On May 21, the company announced cooperation with Hunan Telecom to help the local company develop and pilot a customized management system.

"China's major industries need the same help as in other parts of the world. Manufacturers need to address cost reduction opportunities. Telecommunication companies need to improve customer services and address churn. These are all areas where Teradata can help," he said.