Recently, according to a report on FT.com, Cloudera a Silicon Valley Big Data start-up has raised $900m in a private share sale. This makes the effort the largest fundraising initiative by a US tech company since Twitter’s IPO last November 2013.
The financing for Cloudera demonstrates how leading IT companies are racing to build a new generation of technology platforms capable of managing the mass of data generated by corpo by social networks
and connected “smart” devices.
Much of the investment money came from Intel, giving them an 18 per cent stake in Cloudera. Intel had previously developed its own data management technology using Hadoop and has consolidated this effort with Cloudera as
part of the deal.
The $900M raised by Cloudera as well as well as a recent $100m round of financing raised by Hortonworks demonstrates the widening investor interest in Hadoop.
Hadoop, the open source tool was originally developed by Yahoo for the purpose of efficiently manipulating huge volumes of information collected online. Hadoop has since increasingly gained traction in IT departments seeking open source solutions to data warehousing and Big Data initiatives.
Hadoop's suitability for storing and managing vast amounts of information makes it ideal for Big Data initiatives underway in many organizations. Another start-up, MapR, is also racing to stake out part of the Hadoop market, while IBM and Pivotal, a company partly owned by EMC and General Electric, have launched their own versions of the technology.
Tom Reilly, Cloudera’s chief executive, said the company would use the money to expand overseas and extend its relationships with other technology companies as it looks to boost its sales.
Intel has forecast that Hadoop will become the biggest application to run on servers based on its chips, which account for most of the machines running in the world’s data centers.
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