) recently announced that it has completed the acquisition of
Munich-based eCircle for an undisclosed sum. Based on its
cloud-based marketing tool, eCircle delivers digital messages to
prospective customers via email, social channels and websites.
Teradata intends to integrate eCircle within its Aprimo unit.
Acquired in 2010, Aprimo is a leading provider of integrated
marketing management services. Although eCircle will continue to
maintain its business operations to offer extensive support to its
existing 1000 customers, the acquisition is expected to expand
Aprimo's geographical presence and services footprint.
Aprimo's software-as-a-service (SaaS) offerings integrate
marketing data that help businesses to target right customers with
the right offers. On the other hand, eCircle supports e-mail and
social-media based marketing efforts. When combined, the solution
will expand Teradata's reach into different online channels where
the company lacked a presence.
Teradata hopes to integrate its flagship data warehousing
solutions and Aster Data big data analytics along with the
offerings of Aprimo and eCircle going forward. Aster Data analyses
both unstructured and multi-structured data types typically found
in e-mail, Web and social media marketing campaigns.
This platform-wise integration is expected to benefit customers,
as they will not only be able to deliver marketing messages to
customers but will also be able to monitor social channels for
customer sentiment and collect the related data for further
analyses, thereby smoothing out the decision-making process going
According to Forrester, more than 45.0% of big data
implementations are in the marketing department. Moreover, the
social media, email and mobile marketing market is expected to grow
from $6.0 billion to $16 billion by 2016. We believe that the
acquisition fills up an important gap within Terdata's marketing
portfolio, which will help it to tap this significant growth
opportunity going forward.
Moreover, the acquisition will help Teradata to compete against
larger rivals such as
) in cloud-based offerings over the long term.
We believe that Teradata will continue to benefit from its
international expansion, improved traction from sales force
expansion, new products and alliances, market share gains and a
growing database analytics market. However, increased investment in
sales, higher R&D expenses and an increase in the number of
competing products in the market are resulting in continued pricing
pressure that will likely limit margin expansion going forward.
We maintain our Neutral recommendation over the long term (6-12
months). Currently, Teradata has a Zacks #2 Rank, which implies a
Buy rating in the short term.
INTL BUS MACH (IBM): Free Stock Analysis Report
ORACLE CORP (ORCL): Free Stock Analysis Report
TERADATA CORP (TDC): Free Stock Analysis Report
To read this article on Zacks.com click here.