Data Needs Lure Foreign Firms
Demand for data warehousing products in China is poised to grow over the next few years as the volume of digital information continues to increase, providing a golden opportunity for overseas data analysis companies, according to top executives from Teradata Corp.
"China represents one of the biggest opportunities for Teradata all over the world simply because of the large number of corporations and enterprises," said Mike Koehler, president and chief executive officer of the US-based analytic data solutions company.
China's thriving social media industry, the development of the Internet of Things as well as the popularity of electronic-commerce contributed a vast quantity of data. Enterprises in the country will need to process a substantive amount of data before making a business decision.
More and more Chinese companies have become willing to establish enterprise data warehouses over the past two to three years, said Aaron Hsin, president of Teradata Greater China Area.
Without giving the exact number, Hsin added that some Chinese companies in the telecommunications and banking industries are already "quite ahead" in adopting new data-processing technologies.
The financial institutions and the telecommunications carriers find it easier to understand the value of data management and have issues and challenges that Teradata's specialities can solve, he said.
The company is considering how to direct its products at other industries, such as transportation, manufacturing and the logistics sectors.
The demand from airliners, car makers and shipping service companies is already increasing, according to Hsin.
In April, Teradata signed a partnership deal with Changhong Electric Co, China's top home appliance maker.
"The customers want to have a data architecture that helps them to make the right decisions. That requires integrated data and the ability to explore the business value behind it so that they can undertake more accurate activity and provide better services to their customers," said Hsin.
Teradata's plan is to target the largest companies in each industry because smaller companies tend to adopt the system the largest corporation is using.
"In a way, that is the easiest way to market our products," said Koehler. "Without doubt, Chinese companies are fast learners in adopting new data processing technologies."
In cooperation with Shanghai Stock Exchange, Teradata installed its first system in China in the early 2000s, almost 20 years after the company's foundation in a garage in Brentwood, California.
Teradata has been in the data warehouse market in the United States for longer and has developed more industries and more customers than in China, Koehler admitted. However, he also believed that latecomers in the information technology industry may have some advantages over their predecessors.
"The advantage of the Chinese market is that there are not any legacy IT systems," said the CEO. "In most of the developed markets, the customers were ingrained with processes and legacy systems that they have been used to operating. In China, there is more of a fresh start."
Teradata's China office has been able to develop data warehouses using logical data models, a new way to process data to increase efficiency.
On May 11, Teradata reported global revenues of $613 million for the first quarter of this year, a year-on-year increase of 21 percent from $506 million. The company generated $89 million in revenues in the Asia-Pacific region, a 20 percent increase from the $74 million in the first quarter of 2011.
The company was reluctant to disclose its revenues in China but said it will put more energy into the Chinese market and add investment in research and development.
"The GDP growth in China is better than most of the countries in the world. That is very attractive in terms of opportunity," said Koehler. "Chinese companies will have to deal with so many volumes of data, which presents a golden opportunity for Teradata."
In late 2011, SAP AG, one of the world's leading business software providers, pledged to invest at least $2 billion in China by 2015 in an effort to keep an edge in the country and fund innovation.
The Germany-based company said it will establish five to six new regional headquarters and recruit 2,000 new employees in the country to better serve local clients.
Although Teradata did not unveil the exact investment figure for the Chinese market, the executives said the amount is definitely higher than in other regions.
The investment in R&D was "significantly ahead" of the world average, said Hsin. Teradata has also more than doubled the number of its Chinese employees during the past four years.
"The most important thing is that our customers' feedback is very positive," he said.
China's thriving social media industry, the development of the Internet of Things as well as the popularity of electronic-commerce contributed a vast quantity of data. Enterprises in the country will need to process a substantive amount of data before making a business decision.
More and more Chinese companies have become willing to establish enterprise data warehouses over the past two to three years, said Aaron Hsin, president of Teradata Greater China Area.
Without giving the exact number, Hsin added that some Chinese companies in the telecommunications and banking industries are already "quite ahead" in adopting new data-processing technologies.
The financial institutions and the telecommunications carriers find it easier to understand the value of data management and have issues and challenges that Teradata's specialities can solve, he said.
The company is considering how to direct its products at other industries, such as transportation, manufacturing and the logistics sectors.
The demand from airliners, car makers and shipping service companies is already increasing, according to Hsin.
In April, Teradata signed a partnership deal with Changhong Electric Co, China's top home appliance maker.
"The customers want to have a data architecture that helps them to make the right decisions. That requires integrated data and the ability to explore the business value behind it so that they can undertake more accurate activity and provide better services to their customers," said Hsin.
Teradata's plan is to target the largest companies in each industry because smaller companies tend to adopt the system the largest corporation is using.
"In a way, that is the easiest way to market our products," said Koehler. "Without doubt, Chinese companies are fast learners in adopting new data processing technologies."
In cooperation with Shanghai Stock Exchange, Teradata installed its first system in China in the early 2000s, almost 20 years after the company's foundation in a garage in Brentwood, California.
Teradata has been in the data warehouse market in the United States for longer and has developed more industries and more customers than in China, Koehler admitted. However, he also believed that latecomers in the information technology industry may have some advantages over their predecessors.
"The advantage of the Chinese market is that there are not any legacy IT systems," said the CEO. "In most of the developed markets, the customers were ingrained with processes and legacy systems that they have been used to operating. In China, there is more of a fresh start."
Teradata's China office has been able to develop data warehouses using logical data models, a new way to process data to increase efficiency.
On May 11, Teradata reported global revenues of $613 million for the first quarter of this year, a year-on-year increase of 21 percent from $506 million. The company generated $89 million in revenues in the Asia-Pacific region, a 20 percent increase from the $74 million in the first quarter of 2011.
The company was reluctant to disclose its revenues in China but said it will put more energy into the Chinese market and add investment in research and development.
"The GDP growth in China is better than most of the countries in the world. That is very attractive in terms of opportunity," said Koehler. "Chinese companies will have to deal with so many volumes of data, which presents a golden opportunity for Teradata."
In late 2011, SAP AG, one of the world's leading business software providers, pledged to invest at least $2 billion in China by 2015 in an effort to keep an edge in the country and fund innovation.
The Germany-based company said it will establish five to six new regional headquarters and recruit 2,000 new employees in the country to better serve local clients.
Although Teradata did not unveil the exact investment figure for the Chinese market, the executives said the amount is definitely higher than in other regions.
The investment in R&D was "significantly ahead" of the world average, said Hsin. Teradata has also more than doubled the number of its Chinese employees during the past four years.
"The most important thing is that our customers' feedback is very positive," he said.
