I seriously doubt you could have missed the 2nd part of this, but here’s the shortest executive summary:
- Intel has killed its own distribution of Hadoop — is there anyone that would disagree this is a good idea?
- Intel has invested $740mil in Cloudera (for 18%) — there’s no typo. 740 millions.
The main questions:
- where will Cloudera put the $900mil raised in the last round(s)?
- why Intel invested so much?
These questions were also asked by Dan Primack for CNN Money and after looking at different angles he comes out empty.
So let’s check other sources:
TechCrunch has initially speculated that much of the investment went to existing shareholders.
The post was later updated with a comment from Cloudera’s VP of marketing stating that the majority of the money went to the company. But no word on how they’ll be used.
Reuters writes that Intel made the investment to ensure their leading position in server processors:
Intel hopes that encouraging more companies to leap into Big Data analysis will lead to higher sales of its high- end Xeon server processors. The chipmaker believes that hitching its wagon to Cloudera’s version of Hadoop, instead of pushing its own version, will make that happen faster.
Still no word on how Cloudera will be using the money.
Cloudera needs capital and Intel’s huge sales force to keep up its engineering efforts and grow the company internationally.
As part of the deal, Cloudera will be an early adopter of Intel gear and will optimize its Hadoop software to run on Intel’s latest technologies. Intel will port some of its work into the Cloudera distribution and will maintain its own Hadoop engineering team that will work alongside Cloudera’s engineers to help unite the two company’s goals.
Jeff Kelly for SiliconAngle emphasizes the same channel advantages:
Cloudera’s biggest reseller partner is Oracle. Based on my reading of the Intel announcement, the deal is not an official reseller partnership, but Intel will “market and promote CDH and Cloudera Enterprise to its customers as its preferred Hadoop platform.” Not quite as nice as having the Intel salesforce closing deals for it, but Cloudera stands to gain significant new business from the arrangement.
So how about this short list on how this round will be used by Cloudera:
- a part goes for international expansion
- a larger part goes to early shareholders
- the largest part goes into acquisitions
As for Intel, what if this investment also sealed an exclusive deal for Hadoop-centric Cloudera-supported Intel-powered appliance?
Insert snarky comment here about a $740m deal that would not make sense to one of the parties. How about not making sense to any of them? ↩
Original title and link: Intel kills a Hadoop and feeds another ( ©myNoSQL)