Intensifying its focus on big data analytics, data-warehousing and integrated-marketing-management specialist Teredata Corp. signed a definitive agreement to acquire Aster Data Systems, Inc., a provider of advanced analytics and the management of a variety of diverse data that is not structured.
The companies said the combination would help enable businesses to unlock intelligence hidden within the ever-growing volume of big data.
“We are bringing a new class of data-driven applications that leverage the power of the patent-pending SQL-MapReduce analytics and innovations related to non-relational data processing delivered with flexible and easy-to-use tools,” said Mayank Bawa, chief customer officer and co-founder of Aster Data. “We are really excited about the prospect for growth as we join forces with Teradata to bring Aster Data’s solutions to customers worldwide.”
According to a recent Gartner report, 2011 will be the year when data warehousing reaches what could well be its most significant inflection point since its inception. Gartner’s report concluded that the data warehouse ideal is changing and will give way to a new kind of warehouse that addresses more extreme types of information assets. As a result, data warehouse database management system vendors must begin to address numerous, new information asset formats, or be relegated to supporting roles in the future.
“In fact, we believe through 2015, organizations integrating high-value, diverse, new information types and sources into a coherent information management infrastructure will outperform their industry peers financially by more than 20 percent,” the report predicted.
Big data is generally defined as being massive in volume, with a mix of structured and unstructured data involving complex interrelationships that do not lend themselves to analysis with today’s traditional techniques, Teradata chief development officer Scott Gnau explained. For these reasons, he said, capturing, storing, managing and analyzing it is extremely difficult.
Some of the new sources of diverse, non-relational data include Web applications, sensor networks, social networks, genomics, video and photographs.
“We are excited about the big-data analytics market opportunity that Aster Data brings to Teradata,” said Mike Koehler, president and CEO of Teradata. “This, coupled with our recent Integrated Marketing Management acquisition of Aprimo, and our increased investments into our core data warehouse business, provide three best-in-class platforms to fuel future growth for Teradata,”
Teradata is acquiring Aster Data’s business, including its intellectual property and technology product line, through a merger transaction. Teradata plans to support Aster Data’s customers and integrate its employees immediately upon completion of the acquisition, which is expected to occur in the second quarter of 2011.
Teradata acquired an 11 percent ownership interest in Aster Data in September 2010, and has agreed to pay an additional $263 million for the remaining ownership interest, net of debt and other expenses. In addition, through this acquisition, Teradata will obtain approximately $21 million in cash, which Aster Data is expected to have on its balance sheet at closing.