Which Teradata component is similar to ARC but offers improved performance?

The Teradata Data Stream Architecture (DSA) is designed to enhance performance over traditional components, such as ARC (Active Recovery Component) for data backup and recovery processes. DSA achieves this by utilizing advanced techniques that optimize data transfer and enable faster access to data streams, which ultimately leads to improved efficiency in handling large volumes of data.

In contrast, the other components listed serve different core functions. The Parsing Engine focuses on interpreting SQL queries and managing the execution of those requests. The Message Parsing Layer deals with the communication between various Teradata components but does not specifically enhance data recovery functionalities. Parallel Database Extensions (PDE) provide a foundation for parallel processing but are not directly tied to the data backup and recovery performance improvements seen with DSA.

Therefore, the choice of DSA as the component similar to ARC, but with enhanced performance, highlights its primary role in streamlining data handling processes, making it the best answer to this question.