Teradata VantageCloud delivers 427% ROI & cuts costs with AI
Organisations using Teradata VantageCloud have recorded an average return on investment of 427% over three years, along with a typical payback period of 11 months, according to a new study by Nucleus Research.
Study findings
The independent analysis by Nucleus Research assessed the financial and operational impacts of Teradata VantageCloud amongst companies across sectors including healthcare, insurance, and telecommunications, with employee counts from 5,000 to 45,000. Results show that, on average, adopters saw annual benefits totalling USD $7.9 million, alongside the substantial ROI and rapid payback time.
Alex Wurm, Senior Analyst at Nucleus Research, said, "The financial results demonstrate that enterprises can achieve substantial returns while modernising their data infrastructure. Teradata's innovative approach combines cloud with hybrid flexibility and addresses the real-world constraints organisations face, delivering both immediate operational benefits and long-term strategic value."
The study highlights that cost reductions and operational efficiencies played a significant role in the financial advantage reported by respondents. For example, a telecommunications company was able to avoid the expense of a seven-year infrastructure upgrade, saving USD $350,000 annually through the use of the Teradata platform. The company also benefited from a 43% reduction in administrative overhead by moving to a fully managed service model, providing annual direct cost savings of USD $735,000.
Operational improvements
Performance enhancements also contributed to the results. According to Nucleus Research, the study found improvements in data processing performance ranging from 25% to 30%, while backup operations became 87% to 90% faster compared to traditional manual methods. These increases in automation and speed enabled IT teams to allocate more resources to strategic projects, rather than day-to-day administrative duties.
Organisations making use of Teradata VantageCloud for artificial intelligence and machine learning reported faster model delivery, with speeds increasing by 26% to 75%. In some cases, model deployment times were reduced from over a month to just a week. The accuracy of AI models developed using the ClearScape Analytics platform by Teradata saw lifts of 10% to 15%.
"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.
Real-time results
Examples cited in the study include a healthcare provider with a patient base exceeding three million, which was able to reduce integration timelines by 67% by consolidating previously siloed systems. Elsewhere, a commercial insurer handling 200TB of data reported the ability to process a full day's financial transactions in just 10 minutes, a change attributed to real-time analytics that underpin quicker decision-making.
Assessment methods
Nucleus Research conducted detailed ROI assessments through interviews with Teradata VantageCloud customers. The analysis covered total costs and benefits, including software subscriptions, consulting, personnel changes, and operational impacts over the three-year evaluation period. Standard NASBA accounting principles were applied to ensure accuracy and credibility in the reporting process.
For organisations seeking to calculate their potential return from adopting VantageCloud, Teradata now offers a business value assessment tool. The calculator, which uses Nucleus Research-verified data, aims to help companies gauge possible financial outcomes by entering details about their current operational environment and project objectives.
