Snowflake computing vs Teradata
Someone helps me understand why Snowflake is more valuable than Teradata, while the revenue of Snowflake is 5% of Teradata? Valuation: Teradata 2.97B, Snowflake 3.9B Revenue (annual): Teradata 2.16 Billion, Snowflake 100M Another question: why does Teradata only have 2% net profit margin? Isn’t it a high margin and scalable business? TC: 325k
And...growth trajectory? That's where value lies in most of tech
Teradata is expected to shrink in revenue with high probability of losses. Snowflake is expected to get acquired by one of the major cloud vendors and that is inflating its valuation.
Above article says it all
TDC is legacy and entrenched and juiced out all it can from enterprises. But it is hampering data democratization. Snowflake is a TDC killer but can scale up like crazy. Also ARR last i checked was north of 300m and growing fast
SnowFlake is a rapidly growing company that has the potential to become the dominant player in cloud data warehouses. Current capabilities lag Teradata in some areas, but exceed them in others, especially cloud native ones like elasticity and rapid access. Teradata runs well on cloud infrastructure, but it is not cloud native... node failures take the entire system down, it isn't possible to add and remove nodes dynamically, and computer and storage is strongly coupled. Both companies are priced based on future expectations. Teradata is slowly losing customers... It isn't about to go out of business anytime soon, but the number of companies that must have Teradata level on-premise scalability isn't growing. Snowflake is rapidly growing, and its technology is also rapidly improving. Teradata has hit a plateau... Unless there is a major change in business strategy, it will probably never experience exponential growth, and is more likely to have a gradual very mild decline over the next 20+ years before it is eventually purchased and merged into a next-gen data management company for the customer list.
20 years is a joke...more likely in 2 years it will be bought by a PE firm that will cut and dice and sell its units...no corporate form will buy them as they know TD products stink...Azure already passed on them...if a PE firm does not buy the firm will gradually die as it is losing customers regularly
After 40 years if they could barely do $2B in revenue the company is a dinosaur about to become extinct
Pre IPO valuation with liquidation preferences Edit: also Teradata growth is terrible (negative?)