Thread regarding Teradata Corp. layoffs

Alarming Number of Teradata Customers Leaving

The attrition is accelerating. The vast majority of Teradata customers who have not already defected, have active plans to phase off. Some of these have been Teradata's best customers. Apple, eBay, PayPal, WalMart, Albertsons, Safeway, Bank of America, Royal Bank of Canada, Warner Brothers, SC Johnson, Gap, AT&T, Kaiser, General Motors, Dell, IKEA...the list is much longer. With these all leaving or cutting their spend until they can phase off, and no new customers coming onboard - this is a death spiral. No wonder the CEO dances around any real data on customer acquisition or customer churn. If these customer defections and the true attrition numbers get out, this show will be over fast. #TDCGotSnowBalled

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Post ID: @OP+1haUjRp9

14 replies (most recent on top)

$200M plus gone through attrition just from these customers. It takes years to grow up to that much revenue from your best customer. No wonder TDC is not growing. Even if you win 20 new customers they will generate a fraction of this lost revenue.They are trying to bail out water but it keeps coming in faster. Get the lifeboats ready...

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Post ID: @8nbk+1haUjRp9

Apple was 9% of total rev of tdc. They are now actively moving or moved off. Boa was 55m, actively moved off, Kaiser was 60m, moved off. Easily 200m in annual gone

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Post ID: @6cgy+1haUjRp9

Chappers, what happened to your 24 workstreams? Still haven’t seen jack $hit from you,

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Post ID: @5dwd+1haUjRp9

Can anyone at TDC jump in and educate us on key customer wins? Your competitors make this part of their earnings calls and make numerous win stories public. As others pointed out, there is zero mention of any specifics on the earnings calls, and even when asked SM does not provide any details. This silence says a lot. If you are losing key customers, and not winning new customers - this points to an unhealthy business.

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Post ID: @4ixt+1haUjRp9

If you are right and NC does participate in this forum. On behalf of your colleagues at TDC, we have zero confidence in you, in your strategy, and we don’t trust you. Based on your performance, highlighted by the points made on this thread alone. And for consistently blaming sales and sales leadership for everything. For your infamous and much publicized backstabbing, so do the honorable thing and go before you cause more damage.

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Post ID: @4qvi+1haUjRp9

Apple is TD's largest customer BY FAR. I find it interesting that OR, RP, and most of the Apple account team left shortly after the disastrous Apple executive briefing in RB. Wouldn't surprise me if Apple is on their way out.

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Post ID: @4msj+1haUjRp9

That is a good question. Maybe we have not even won 5. Since NC actively monitors and comments on this site and he "owns" strategy he can jump in and name some key customer wins to prove his strategy is working and make us all feel better. NC, can you please give us five new strategic customer wins to help offset all the ones that were named as losses? Please pass these on to SM so he can talk to them on the next earnings call. You can also refute any of those losses named by the OP if you can to bring down the denominator.

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Post ID: @3swv+1haUjRp9

Which 5 strategic customers have we won and actually managed to keep ? I struggle to think of 1 that’s worth significantly more than the pre-sales investment that was sunk in the deal.

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Post ID: @3qfc+1haUjRp9

If you were to look at a ratio of strategic customers won/strategic customers lost over the past three years it would be scary. A healthy company would win 50 and only lose 5, so this would be 10. At TDC it is the opposite. As the OP listed so many of the customers by name, TDC has lost at least 50 strategic customers over the past three years and has probably only won 5, if that many. So 5/50 = 0.1. This number should scare employees, customers, and investors. We don't need McKinsey to tell us what the problem is. And as the TDC salesperson pointed out, NC and HA can't just blame sales like they always do to deflect blame. We have a cr---y legacy product not build for cloud. And that is all we have to sell. #SellTheTruck

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Post ID: @3lls+1haUjRp9

Each of the points on this thread is telling. The attrition is accelerating. Most Teradata customers who have not already defected have active plans to phase off. Finally, TC doesn't work; we lack innovation and a strategy.

So why aren't the alarm bells ringing?

Why won’t our CEO or NC in his role as owner of the strategy answer a few questions?

Why are our customer churn rates so high even after the tens of millions NC spent with his old bosses at McK failed to impact customer and workload attrition.

Pipeline growth, conversion, win rates, or win/loss data do not support SM narrative of an enormous funnel mentioned on the last two earnings calls. Neither does it help NC or HA's story that we don't have a product problem. We have a sales problem.

# New logos or new workloads are not shared because we don't have the products to support NC and HA storytelling that we don't have a product problem we have a sales problem. In sales, those of us who know the product have sold not only what's on the truck, but the truck itself. So please give us something new at this point beyond vague PowerPoint roadmaps; we in the field are beyond desperate. Worse, when we challenge you, we are shot down; ask JA in the Americas.

After spending tens and tens of millions on McK what is our strategy? Are all of the superfluous work-streams or hundreds of initiatives doing anything other than bolstering PowerPoint usage and sharpening our slide production skills, and consuming thousands of wasted hours?

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Post ID: @3igi+1haUjRp9

Marketing is useless as the numbers show and the diversity hire and her minions should be canned. Not sure about the other areas mentioned.

And the board and ELT shouldn’t get and pay unless they right the ship.

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Post ID: @3icx+1haUjRp9

When you only have a few hundred customers, how can you possibly need all the overhead personnel in pricing, procurement, finance, etc. And (sarcasm) with all the wonderful customers kept on the docket by a differentiated strategy, why even have a strategy function? And since customers are leaving and no one seems to care about new logos, why is marketing needed? And then there is the part-time, contractor CTO ... who knows why he is still around? So at a high level, you just need Sales and Engineering to try and keep the business going for as long as possible. Now where did I put my COBOL reference manual? :)

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Post ID: @2ojk+1haUjRp9

And the "cloud customers" they talk about are really just old Teradata customers moving existing workloads from on-prem hardware to AWS or Azure. They keep them in the Teradata database bolted onto cloud until they can migrate to a cloud-native solution like Snowflake, Redshift, or Databricks. The "ARR growth" is basically just moving dollars from one bucket to another. None of their customers have a long-term plan to grow more applications on Teradata. This is why on the last earnings call SM threw in the towel with 9 months left and said overall revenue would decline. Hard to believe a leader would give up so easily this early in the year but he sees the writing on the wall. He will walk with a ton of $$$$ either way

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Post ID: @gxf+1haUjRp9

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