Cloudera, Hortonworks merge in deal valued at $5.2 billion
Featured
Cloudera and Hortonworks, the two leading enterprise Hadoop providers, said they will combine in a merger of equals in a deal valued at $5.2 billion.
Under the terms of the deal, Cloudera shareholders will own 60 percent of the combined company with Hortonworks stockholders taking 40 percent. Hortonworks shareholders will get 1.305 Cloudera shares for each share owned.
Also: Why people are the biggest barrier to public cloud TechRepublic
According to the companies, the combined entity has a better chance to be a next-gen data platform across multiple clouds, on-premises and Edge computing. Hortonworks and Cloudera also have complementary approaches, customers and industries.
Indeed, the combined company will have about $720 million in revenue, more than 2,500 customers and about $500 million in cash.
The plan for the companies is to expand their market and leverage a unified platform for edge computing to AI as well as Internet of things.
Also: Best cloud services for small businesses CNET
Overall, the companies are complementary across multiple areas. Both Hortonworks and Cloudera have multiple opportunities to cross sell and optimize costs. The companies noted that they have a common code based, can leverage open source and have a broader international footprint.
Tom Reilly, CEO of Cloudera, said "bringing together Hortonworks' investments in end-to-end data management with Cloudera's investments in data warehousing and machine learning" will enable more digital transformation for customers.
Meanwhile, Rob Bearden, CEO of Hortonworks, said the scale will help the company invest more to "continue growing and competing in the streaming and IoT, data management, data warehousing, machine learning/AI and hybrid cloud markets."
Primers: What is AI? Everything you need to know about Artificial Intelligence | Machine learning? | Deep learning? |Artificial general intelligence?
Reilly, will serve as CEO of the combined company. Hortonworks' Chief Operating Officer, Scott Davidson, will serve as Chief Operating Officer; Hortonworks' Chief Product Officer, Arun C. Murthy, will serve as Chief Product Officer; and Cloudera's Chief Financial Officer, Jim Frankola, will serve as Chief Financial Officer, of the combined company. Bearden, will join the board of directors. Current Cloudera board member, Marty Cole, will become Chairman of the board of directors.
As for the outlook, the companies said the combined entity should be on track for $1 billion in annual revenue by 2020.
Cloud services: 24 lesser-known web services your business needs to try
Previous and related coverage:
What a hybrid cloud is in the 'multi-cloud era,' and why you may already have one
Now that the services used by an enterprise and provided to its customers may be hosted on servers in the public cloud or on-premises, maybe "hybrid cloud" isn't an architecture any more. While that may the case, that's not stopping some in the digital transformation business from proclaiming it a way of work unto itself.
Cloud computing: Here comes a major tipping point
Application spending has moved to the cloud fastest, but other areas of IT spending are catching up.
Salesforce's master plan through fiscal 2022 by the numbers
Salesforce's growth for the years ahead are pegged to multi-cloud customers as well as add ons to core services. Here's a look at the core figures.
When supercomputing and AI meets the cloudIreland is getting a new supercomputer; Penguin Computing CEO Tom Coull on how supercomputing is taking on some big computing challenges.
Related stories:
- What's the best cloud storage for you?
- https://www.zdnet.com/article/whats-the-best-cloud-storage-for-you/Top cloud providers 2018: How AWS, Microsoft, Google
- https://www.zdnet.com/article/cloud-providers-ranking-2018-how-aws-microsoft-google-cloud-platform-ibm-cloud-oracle-alibaba-stack/Everything you need to know about the cloud, explained
- XaaS: Why 'everything' is now a service
- Infographic: Why companies are switching to Everything as a Service
- Free PDF download: The Future of Everything as a Service
- SaaS, PaaS, and IaaS: Understand the differences
- Cloud computing: How to make the move without losing control
- Amazon cloud lead shrinks as Microsoft Azure growth explodes TechRepublic