Teradata Pulls The Pin On Marketing Tech. What Next?

Teradata Pulls The Pin On Marketing Tech. What Next?
SHARE
THIS



Teradata’s decision to withdraw from the marketing tech race, after building the business for several years has surprised market analysts. The question is whether this will start a rush for the exit for some of the second tier marketing cloud vendors, or whether it is simply unique to the company’s own circumstances.

As vendors like Oracle, Adobe, Salesforce and Marketo double down on their investments – particularly with an expansion into ad tech, Teradata would have been hard pressed to follow given its constrained circumstances.

CEO Mike Koehler (pictured below) announced the sale of the $200 million group last week in an earnings call, saying instead that Teradata would focus on its analytics business (itself under pressure from the emergence of open source technologies like hadoop).

CEO Mike Koehler

In its analysis Gartner suggested that despite the acquisitions of Aprimo and eCircle in recent years, “Teradata has long struggled in the application business as it is better known for data and analytics, and selling applications to marketing buyers is not the same as selling data and analytics to IT buyers.”

That’s ironic, given Teradata was an early pioneer in marketing technology and in fact was simply returning to the fold in recent years.

Analyst Kimberley Collins in a note to clients outlines four possible scenarios. The most likely is that the company will sell different applications to several different software vendors in order to help them extend their existing marketing capabilities. Such a move is not without risk in the digital marketing industry, she says.

Almost as likely is the new of a new entrant (presumably private equity or a company from an adjacent market) could buy the marketing business outright.

Gartner suggests a sale to a single vendor is less likely due to the problem of a redundancy of applications by the acquiring vendor. That is slightly mitigated if the vendors lack significant marketing tech already (SAP, we are looking at you.)

According to Collins, “Marketing Resource Management (MRM): MRM is the “star” product in Teradata’s marketing application portfolio, with a robust solution that has long been a leader in Gartner’s Magic Quadrant. It would be a great opportunity for a vendor to enter the MRM market in a signicant manner.

“Although MRM continues to be a strong seller, traditional Aprimo customers have expressed post-acquisition dissatisfaction with Teradata’s customer service, account management and pricing, leading to client retention issues. A new vendor could bolster customer satisfaction and drive sales momentum.”

And finally, the idea that Teradata might spin of the marketing business into a whole new entity is the least likely at all.

There is some speculation that Teradata only arrived at the decision recently. Behind this suggestion is the fact that the company only acquired data management platform FLXOne four weeks ago, begging the obvious question – why?

This article originally appeared on B&T’s sister site www.which-50.com

Please login with linkedin to comment

Advertising Standards Bureau Choice Hotels customer acquisition einsights insurance australia group Rob Creekmore SBS

Latest News

HEADS UP: Entries For B&T’s Best Of The Best Awards Close This Week!
  • Advertising
  • Marketing
  • Media
  • Technology

HEADS UP: Entries For B&T’s Best Of The Best Awards Close This Week!

Okay, people. It’s time to take us seriously when we say that entries for B&T’s Best of the Best awards close this Friday! The day we’ve been warning you about for weeks is here, and it’s time to get your act together. Head on over HERE and start your submission. On-time entries for Best of the Best will be […]

by B&T Magazine

B&T Magazine
Witchery Partners With GlamCorner To Boost Subscription Shopping
  • Media

Witchery Partners With GlamCorner To Boost Subscription Shopping

Australian fashion brand Witchery has partnered with B Corp GlamCorner as part of GlamCorner’s subscription box offering as the demand for everyday essentials soars. This partnership marks another milestone for the Australian fashion industry towards becoming more circular and introducing more paths to reduce textile waste. Customers nationally will be able to rent more of […]

Curry Club For COVID-19 Relief, Powered By UnLtd, Challenges AdLand To Raise $100,000
  • Marketing
  • Media

Curry Club For COVID-19 Relief, Powered By UnLtd, Challenges AdLand To Raise $100,000

The media, marketing and creative industries are being encouraged to host their own ‘Curry Club for COVID’ before 30th June to help meet the ambitious $100k target set by its organisers. Curry Club for COVID, which was conceived by long-time adtech executive Peter Bray, sales director at Impact, and is powered by industry social purpose organisation […]

by B&T Magazine

B&T Magazine
UnLtd’s ‘Goals for Good’ Soccer Tournament Celebrates 10 Years
  • Media

UnLtd’s ‘Goals for Good’ Soccer Tournament Celebrates 10 Years

The UnLtd Cup is returning for its tenth consecutive year, marking a decade of soccer shenanigans that’s raised nearly $500,000 for children’s mental health charity, KidsXpress. On July 22-23rd, 28 teams from across the industry will battle it out on the soccer field in the two-day tournament at Sydney University Sports and Fitness Centre, Darlington. […]

Mobile Pnone Shopping Online With A Debit Card
  • Marketing
  • Technology

Ultra Commerce Acquires Vesta eCommerce

Australian-bred company Ultra Commerce has acquired New Zealand-based company Vesta eCommerce, a global software business providing leading product data management solutions. The recent acquisition is a significant move for the business, which is Australian born, owned, and headquartered, but has built out a global presence as it pursues rapid growth in the eCommerce market. Connecting […]

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign
  • Campaigns

Crater Teams Up With Director Luna Laure For ‘Harry’s Story’, Canteen’s Newest Campaign

Canteen’s latest campaign features the combined talents of Director Luna Laure and creative agency Crater. The campaign strives to raise awareness for young people affected by cancer. The awareness campaign centres around Harry Barentson, who at 12 years of age found out his pregnant mum had cancer. The campaign aims to bring awareness to Canteen’s […]

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners
  • Campaigns

AFL Legend Kevin Sheedy Narrates ‘A Love Letter To Victoria’ Via Enthral Partners

In partnership with storytelling agency Enthral, AFL star Kevin Sheedy has voiced a video ‘Love Letter to Victoria’ using visuals to showcase the state’s natural beauty and culture. Victoria has been hit with the worst of the coronavirus pandemic compared with any other Aussie state experiencing four lockdowns. Sheedy has partnered with Ethral to share […]

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media
  • Advertising

Telstra’s Belong Appoints Howatson + White For Strategy & Creative, Retains OMD For Media

Telstra’s lower-cost telco, Belong, has awarded its strategy and creative account to Howatson + White, and has reappointed OMD to its media buying account, after a competitive pitch process. Howatson + White will handle strategy, planning, creative and CRM, while former agency Clemenger will continue to have a relationship with Belong, managing PR and retail activation. […]

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy
  • Advertising
  • Campaigns

Coke Releases New Campaign, ‘Turn Up Your Break’, Via Ogilvy

Coca-Cola Australia has rolled out its new campaign ‘Turn Up Your Break’. The campaign will be led by a TVC that encourages people to truly pause with a Coke on their break so they can walk away feeling refreshed and uplifted. The TVC features two busy chefs stepping outside for a break, the bustling kitchen […]