Zero Down – and Pay Only for What You Use with Teradata Consumption Pricing

Consumption Pricing is a usage-based option with automatic elasticity in which you pay only for compute resources consumed for successful queries, plus storage. Learn more.

Brian Wood
Brian Wood
8. Oktober 2020 3 min Lesezeit
Teradata's Consumption Pricing Model.
I’m pleased to announce the General Availability of Consumption Pricing for two as-a-service cloud offers, Teradata Vantage on AWS and Teradata Vantage on Azure.

What is Teradata Consumption Pricing?

Consumption Pricing is an innovative, usage-based option with automatic elasticity in which you pay only for compute resources consumed for successful queries, measured down to the kilobyte by user, plus storage.
You need never worry about utilization, system sizing, or resource status since Teradata manages them on your behalf – and you do not pay for what you do not use.
For a risk-free experience, you can even start with zero down and no obligation.

What is special about Teradata Consumption Pricing?

  1. Zero down, no obligation: Consumption Pricing offers a risk-free opportunity to try Vantage in the cloud. Use it for a few months and then decide whether it is the right solution for your organization. If yes, then you have several options to choose from. If no, simply walk away with no strings attached. Easy!
  1. Usage vs. capacity: Teradata Consumption Pricing is a true usage-based offer, not one determined by how long resources are turned on or simply available. This is dramatically different than what others characterize as “consumption” because theirs is a function of provisioned capacity, not actual customer usage. Justice!
  1. Pay only for what’s used: Enjoy improved business efficiency and align your analytic investment with outcomes. I’ll say it again: Pay only for what you use – and do not pay for what you do not use. What could be simpler?
  1. Automatic elasticity: there’s no need to think about infrastructure sizing or utilization because Teradata monitors and manages the cloud environment for you, including scaling resources as necessary. This saves you time by not having to worry about capacity planning. Nice!
  1. Transparent cost allocation: easy (and fair) departmental chargeback of data analytics costs is a breeze because user groups can be set up and tracked independently by usage. Many organizations have wanted this capability – and now Teradata offers it!
Think about it: For workloads with low utilization, the delta between provisioned capacity and actual usage on an analytics platform can be quite large. Unlike capacity-based alternatives determined by whether compute instances are turned on or off, Teradata’s Consumption Pricing is strictly a function of usage.

Why does usage-based pricing from Teradata matter?

Analyst firm Gartner predicts that by 2022, 75 percent of organizations using cloud data management systems will experience budget overruns, prompting those firms to reduce flexibility and elasticity to overcome the challenge, thereby negating the primary benefits of deploying in an agile cloud environment.
Likewise, McKnight Consulting Group writes about the effect of cloud-only provider pricing on customers, stating that, “Some organizations have seen upwards of 3-5X higher costs than originally projected… Time wasted. Budgets impacted. Migrations disrupted. It doesn’t have to be this way.”
Not so with Teradata, because we get it. Low usage workload? No problem, you’ll pay a low cost with Consumption Pricing. It’s that simple.
Usage-based pricing flips the script on outdated perceptions of what is required to get started with Teradata.

What comes with the Consumption Pricing offer?

Consumption is more than just a pricing model or payment plan because the offer itself is comprehensive, including nearly every available option at no additional charge:
  • Vantage Enterprise tier software
  • Public cloud infrastructure provisioning and management
  • IntelliSphere ecosystem software
  • System monitoring and maintenance
  • Encryption of data in motion and at rest
  • Daily backups administered by Teradata
  • 99.9% availability SLA  

Which use cases are the best fit for Consumption Pricing?

Consumption Pricing is optimized for low utilization, unknown future usage, or for tactical business analytics that include frequent ad hoc queries:
  • Test/Dev
  • Discovery Analytics
  • Workloads with rapid growth
  • Workloads where predicting the optimal system size is difficult (e.g., a new customer to Teradata, new business unit for an existing customer, new acquisition, new data sets)
  • Production analytics with business-driven internal funding models where department chargeback is critical to operations and to respond to rapid change in business usage

Where may I learn more about Teradata Consumption Pricing?

 We also recognize that some customers philosophically just don’t want to pay for what they don’t use, and that’s totally fine. With Teradata in the cloud, you have that choice.
We originally announced Limited Availability for Consumption Pricing at Teradata Universe 2019. Now Consumption Pricing is Generally Available for both Vantage on AWS and Vantage on Azure globally.
Availability of Consumption Pricing for Vantage on GCP is planned for Q1 2021.
To learn more, visit:

Über Brian Wood

Brian Wood is director of cloud marketing at Teradata. He has over 15 years' experience leading all areas of technology marketing in cloud, wireless, IT, software, and data analytics. He earned an MS in Engineering Management from Stanford, a BS in Electrical Engineering from Cornell, and served as an F-14 Radar Intercept Officer in the US Navy.

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