Independent Research Demonstrates Strong Financial Returns and Accelerated AI Innovation for Teradata Customers

Teradata (NYSE: TDC) today announced the results of an independent return on investment (ROI) study conducted by Nucleus Research, a global provider of ROI-focused technology research and advisory services. The comprehensive analysis found that organizations using Teradata VantageCloud achieved an average ROI of 427% over three years, with an average annual benefit of $7.9 million and a payback period of just 11 months.

"The financial results demonstrate that enterprises can achieve substantial returns while modernizing their data infrastructure," said Alex Wurm, Senior Analyst at Nucleus Research. "Teradata's innovative approach combines cloud with hybrid flexibility and addresses the real-world constraints organizations face, delivering both immediate operational benefits and long-term strategic value."

To better understand the benefits and costs associated with an investment in Teradata VantageCloud, Nucleus conducted an in-depth ROI assessment of multiple customers across healthcare, insurance, and telecommunications organizations ranging from 5,000 to 45,000 employees. (Methodology details below.) On average, organizations realized:

• Annual ROI: 427%
• Payback Period: 11 months
• Annual Benefit: $7,917,573

Other significant operational and performance benefits found in the study included:

• Cost Reduction and Operational Efficiency: Eliminated costly hardware refresh cycles, with one telecommunications company saving $350K annually by avoiding a 7-year infrastructure upgrade. Administrative overhead was reduced by 43% through Teradata's fully managed service model, delivering annual direct cost savings of $735,000.
• Enhanced Compute Performance: Data processing performance improved by 25% to 30%, while backup operations accelerated by 87% to 90% compared to traditional manual processes, allowing IT teams to redirect focus to higher-value strategic initiatives.
• Accelerated AI and Machine Learning: Organizations achieved 26% to 75% faster model delivery times – reducing deployment from over a month to just one week in some cases. Existing models performed 10% to 15% better with ClearScape Analytics' comprehensive AI/ML platform.
• Real-Time Business Impact: A healthcare provider serving over three million patients reduced integration timelines by 67% while merging previously siloed systems. A commercial insurer processing 200TB of data now processes a full day's worth of financial transactions in just 10 minutes, enabling real-time decision-making.

"By integrating Teradata's advanced analytics into our retention strategies, we're not just predicting customer churn – we’re preventing it. After transitioning to Teradata's ClearScape Analytics, our AI-driven churn modeling saw a 10-15% lift in accuracy," noted a telecommunications provider.

Read the full value guidebook here: https://www.teradata.com/resources/analyst-reports/value-guidebook

New Calculator to Determine ROI Potential

Organizations interested in quantifying their potential returns can access Teradata's business value assessment tool to see potential returns from data and AI initiatives. The interactive tool, with data verified by Nucleus Research, helps companies understand how Teradata enables organizations to do more with less by answering a few quick questions about their current environment and objectives. Access it here: https://www.teradata.com/why-teradata/business-value-calculator

Learn More: LinkedIn Live on July 15, 2025 @ 8am PT; 4pm BST; 5pm CEST

Join Alex Wurm, Senior Analyst at Nucleus Research, and Jen Wray, SVP, Worldwide Field Technology Organization at Teradata for "The ROI Conversation: Framing Data & AI Projects for Executive Buy-In." Drawing on in-depth interviews with Teradata customers, Wurm will share what separates high-performing data and AI initiatives from those that stall out. The virtual session (registration required) will explore:

• How leading organizations are cutting model development time by up to 51% and boosting data science productivity
• Why and how customers are achieving 4x ROI and payback in under a year
• Ways to reframe technical initiatives in terms of business impact for stakeholder buy-in

Comprehensive Research Methodology

Nucleus Research conducted in-depth ROI assessments through extensive interviews with Teradata VantageCloud customers, analyzing costs and benefits across software subscriptions, consulting, personnel, and operational impacts over a three-year period. The study employed standard NASBA accounting principles to ensure financial accuracy and credibility.

About Nucleus Research

Nucleus Research is a leading provider of investigative research and advisory services focused on the business value of technology. Since 2000, Nucleus has published ROI research studies that help organizations understand the real business impact of technology investments. The company's NASBA-registered ROI methodology provides standardized financial assessments used by enterprises worldwide.

About Teradata

At Teradata, we believe that people thrive when empowered with trusted information. We offer the most complete cloud analytics and data platform for AI. By delivering harmonized data and trusted AI, we enable more confident decision-making, unlock faster innovation, and drive the impactful business results organizations need most. See how at Teradata.com.

The Teradata logo is a trademark, and Teradata is a registered trademark of Teradata Corporation and/or its affiliates in the U.S. and worldwide.

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