Startup Cloudera Secures $160 million From T Rowe, Google Ventures.
Cloudera managed to raise $160 million in funding round this week, from major investors as it considers and initial public offering, with plans to invest as much money in engineering resources to increase its contributions to the Apache Hadoop community.
Investors and Plans.
Cloudera is a leading provider of the open source Apache Hadoop framework that used for storing and real-time processing Big Data with commodity hardware and cloud infrastructure. Investors who joined in this funding round were T.Rowe Price, Google Ventures, and a Associate of MSD Capital, the private investment firm that was created to leverage the capital of Michael Dell and his family.
With this recent investment, Cloudera currently has a total of $300 million in venture funding, Speaking during the early mornings of GigaOM structure Data conference in New York, CEO Tom Reilly spoke that the funding has given them the necessary capital to extending its contributions to the open source of Apache Hadoop community including investment in its ISV partner ecosystem.
“Our funding is going to allow us to put more resources into the community,” Reilly said. “While we have the founders and the innovators behind a lot of the projects, we see a lot of emerging projects we want to support, we want to integrate with [and]we want to bring it to our distribution.”
Against the Competition.
Reilly didn’t bother to hide the fact that in addition to competing with other important Apache Hadoop distributors Hortonworks, MapR and Cloudera, along with its new Enterprise Data Hub, it planning to challenge the main data management platform players, notably those of Pivotal and IBM. More than 200 ISVs have already began to integrate with Cloudera’s Hadoop-based Enterprise Data Hub and the company is in the middle of processing and certifying over 150 of them, said Reilly.
“Both IBM and Pivotal do have distributions of Hadoop, they compete with us at that level, but then they have a stack of products that are very good products that they build on top,” Reilly said. “We have a different view. Our Enterprise Data Hub is not only open at the core of Apache but it’s open-architected.” With the ISV integrations, he added, “that gives our customers a lot of choice and flexibility versus a stack approach.” Though it competes with IBM on the stack side, Reilly noted Big Blue’s Watson technology is complementary.
“We’re building up our partnering team, we are putting engineers dedicated to each of our critical partners,” Reilly said. Whether it’s an ETL partner, our data warehouse, database partners, our BI, our analytic partners and making sure that the integrations are working, increasingly a lot of partners want their compute engine running inside our Enterprise Data Hub inside a cluster, so we’re making that work more effectively.”
Reilly was imminent of Cloudera’s aim for an IPO but said “we still have a lot of work to do to get ready to be a public company.” For instance, Cloudera continues to manage its financials with QuickBooks, thought they are planing to transfer to an ERP system, is putting countless new process in place and just recently hired a general counsel.
“We do not need to depend on an IPO for a financing event,” he said. “Rather we want to go public to bring transparency into our business, to give our customers confidence that we’re a long term sustainable business.”