HortonWorks and Cloudera Join Forces
Hadoop powerhouses come together in a battle against Cloud
Two heavyweights in the Hadoop world, Cloudera and Hortonworks, recently announced that they’d be joining their stocks and assets together in a complete merger. According to the Service Director for GlobalData, Brad Shimmin, this new partnership will leave only a handful of distribution rivals in the Hadoop space capable of competing in the race to the cloud.
GlobalData is an organisation best-known for collecting insightful information across industries like the consumer, healthcare, technology, finance, and retail spaces. Brad Shimmin spoke up about the recent Hortonworks and Cloudera Merger to discuss how the combining forces demonstrate the acceleration of the global move into a cloud environment.
What Does the Cloudera and HortonWorks Merger Mean?
The decision to join forces is a positive one for Hortonworks and Cloudera, as it means that the combined firm will complete their merger with $720 million in combined revenue, as well as an impressive $500 million in debt-free cash, and more than 2,500 customers worldwide. Both of the organisations involved in the merger believe that the deal will help to reduce operating costs too, with a prediction of over $125 million in annual cost synergies.
The more streamlined and cost-efficient resulting business will allow Cloudera and Hortonworks to focus their efforts on more disruptive technology like the hybrid cloud, Artificial Intelligence, the Internet of Things, and Streaming Analytics.
What Does GlobalData Think?
In Brad Shimmin’s opinion, the most compelling part of this merger isn’t the two companies coming together, but what the partnership says about the disruptive nature of the cloud. Shimmin suggests that today, the cloud has become a more viable platform for big data management for SMBs, multi-national companies, and more.
Both Hortonworks and Cloudera have accomplished incredible things when it comes to delivering big data related technologies and pure-play Hadoop to their customers. In the future, the combined Cloudera and Hortonworks customers will be able to continue using the firm’s services to access a more comprehensive open source software offering on-premises, however, Shimmin believes that now that the same OSS software is appearing in cloud platforms from Google, Amazon, and Microsoft, it’s harder for any on-premises vendor to catch up.
Cloudera and Hortonworks coming together may help to give them more impact an increasingly cloud-focused environment, but GlobalData believes that no merger could stop the popularity of cloud from continuing to grow at a break-neck speed. The only way for the two partnering companies to excel in the future is to use their enhanced position to invest in the potential of the cloud.