Cloudera Investor: Intel’s Huge Bet is Another Microsoft Windows MomentPosted by admin on March 31, 2014
Intel’s $740 million investment in Cloudera comes at a valuation of $4.1 billion.
By Deborah Gage
Intel Corp.’s $740 million investment into Cloudera Inc. means that Cloudera’s big data software, Hadoop, is no longer a technical curiosity, Cloudera investors said.
Intel invested in Cloudera at a $4.1 billion valuation and is dropping its own version of Hadoop, which is software than can analyze huge amounts of data by breaking it up into chunks and spreading it across thousands of standard servers. Intel chips power many of these servers, and the company expects to benefit as more companies use Hadoop.
So far, according to CIO Journal, there are only 1,000 implementations of Hadoop in use at businesses.
Cloudera investor Frank Artale, a managing director at Ignition Partners and a former executive at Microsoft Corp. during the 1990s, said Intel is doing for Cloudera what it once did for Microsoft and Windows.
Once Intel committed to working with Microsoft to make Windows run well on Intel chips, “their customers– folks like Compaq or HP—said ‘Intel trusts it, so we trust it,’ and then corporate customers trusted the infrastructure,” said Mr. Artale, a former general manager in the Windows group who worked on Windows 2000.
Application developers will follow, investors said. “Intel has a huge ecosystem [of hardware and software companies] and Cloudera is a big partner around big data applications,” said Accel General Partner Ping Li, who’s on Cloudera’s board.
Cloudera has now raised $1.2 billion pending the close of this funding round, but there are still several other versions of Hadoop, which has its roots in software developments at Google Inc. and Yahoo Inc. and is available free under what the industry calls an open source license.
Counting Cloudera, there are three venture-backed Hadoop companies—including Hortonworks Inc. and MapR Technologies Inc.—and some investors say all of them could go public. There are also Hadoop versions at International Business Machines Corp. and at Pivotal Inc., a joint venture between VMware Inc. and EMC Corp. in which GE has a stake.
Cloudera said it expects big growth in the market for big data software, citing data from IDC that projects 30 billion autonomous connected endpoints on the Internet by 2017, and a 50-fold growth of data globally from 2010 to 2020.
–Don Clark contributed to this story.
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