Over the years, Hadoop, has spawned the once-soaring open-source platform, many businesses and an ecosystem of providers. It was long assumed that some big companies would come out of the pack and that Hortonworks went public in 2014. Cloudera followed suit three years later, but the market slowed down and the two companies announced today that they are merging into a $ 5.2 billion deal based on yesterday's closing price
Part of the problem with Hadoop although it was downloadable, it was pure complexity. Here companies like Hortonworks and Cloudera came into play. They bundled it for IT departments that wanted the benefit of a large computing platform, but did not necessarily want to build Hadoop from scratch.
These companies offered several ways to help address this complexity, but over time with all the cloud-based big data solutions, the roll-up of a Hadoop system seemed useless, even with the help of companies like Cloudera and Hortonworks.
In an interview in 2017, Carl Oloff, an analyst at IDC, described the differences between the two companies, differences that could now help them if they become a single company.
Olof described Hortonworks as a "pure open source company" that packages, coordinates and manages open source as a subscription fee product and also sells support. He [said] focuses the company's products primarily on "big data technologists".
Cloudera is a bit different, he said. "[It] offers packages that are mostly open source, but with tools that are proprietary and that target various classes of business issues, they sell to business managers, so their approach is different and as a result they have a higher percentage of their income Software as Hortonworks, "Olofson told TechCrunch.
Sometimes the best answer to a fragmented market comes together, and that's exactly what two companies have done today. The transaction involves a merger of all shares, with each partner receiving the same ownership, according to a statement announcing the deal.
Tom Reilly, Cloudera's longtime CEO, sees the two companies as complementary they could not be separated. "Our businesses are highly complementary and strategic, bringing together Hortonworks' end-to-end data management investment with Cloudera's data warehousing and machine learning investments to become the industry's first enterprise data cloud from Edge to AI Deliver, "Reilly said in a statement
You could imagine, Hortonworks CEO Rob Bearden agreed. "This compelling merger will provide added value for our respective shareholders, enabling clients, partners, employees and the open source community to benefit from the combination of increased offerings, greater scope and improved cost competitiveness of this combination," he said Statement.  The combined companies will have 2,500 customers, $ 720 million in sales, and $ 500 million in cash without debt, according to the company.
Cloudera, which was founded in 2008, raised more than $ 1 billion before going public. In 2014, Intel Capital experienced a major outbreak of $ 740 million. Hortonworks, founded three years later, raised $ 248 million.