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Teradata acquires Stemma to boost AI-based data search for analytics

Teradata’s new acquisition plan

Teradata announced the acquisition of data catalogue software company Stemma on Tuesday to strengthen its Vantage self-service analytics platform with Stemma’s AI-based data search and exploration capabilities.

Teradata’s chief product officer, Hillary Ashton, said in a statement, “Stemma’s automated data catalogue capabilities will help Teradata provide an enhanced user experience aimed at driving development in the growing field of AI and machine learning-based analytics.” without disclosing the transaction’s financial specifics.

But what is Stemma?

Sequoia Capital has invested $4.8 million in Redmond-based Stemma. All Stemma personnel, including engineers and metadata specialists, will join Teradata’s staff of approximately 7,000. Teradata’s product roadmap in data lineage, governance, and compliance will benefit from the purchase. Teradata has improved its self-service analytics suite by introducing a new edition of its multi-cloud analytics platform, VantageCloud Lake, with low-cost object storage and an extended ClearScape Analytics suite for artificial intelligence operations.

Stemma’s software has approximately 20 built-in data connections, which improves Teradata’s data fabric and speeds up analytical productivity. It is compatible with AWS Athena, AWS Redshift, Google BigQuery, PostgreSQL, Snowflake, dbt, Apache AirFlow, Tableau, Mode Analytics, Looker, Metabase, Slack, Jira, and other technologies.

What is a new version of Teradata’s multi-cloud analytics platform, VantageCloud Lake?

Teradata has been working hard to expand its self-service analytics package. It announced a new version of its multi-cloud analytics platform, VantageCloud Lake, in August of last year. This includes low-cost object storage as well as an upgraded ClearScape Analytics package that provides in-database analytics for AI operations.

Analyst Opinion: This is a critical strategic step for Teradata as it moves beyond a data warehouse solution to strengthen its position in the emerging AI field. The framework for AI development is gradually converging on Data Platforms, which include managing various data sources, data conditioning and transformation by data engineers, and even directing workflows for AI algorithms by data scientists. The capabilities required for the Data Platform are growing as this market becomes more competitive.

What prompted Teradata to acquire Stemma?

Teradata has expanded the capabilities of its VantageCloud Data Platform with the purchase, strengthening its position in AI. Notably, the key function obtained from the Stemma purchase is a Data Catalogue, which allows for the gathering and management of data from sources other than the Teradata warehouse. Stemma features a large range of connectors for gaining access to additional data sources that are crucial for supplying the AI models. The Data Catalogue additionally offers Data Governance for the various sources, which is required for data quality and source guarantees. The search functionality and metadata management that Stemma has added to the Data Catalogue are another incredibly significant tool for Teradata in the development and extension of its Data Platform.

Future of Teradata with Stemma

Teradata could greatly benefit from the acquisition of Stemma, which will broaden the company’s Data Platform capabilities in a highly competitive market. There appears to be little overlap between the Stemma Data Catalogue and what Teradata VantageCloud currently offers, allowing for speedier integration.