Cloudera and Hortonworks: Prodigal sons reunite


With the advantage of two sets of eyes and ears, one of us got the news live while the other just saw it in a series of cryptic text messages upon landing at Newark Airport a couple hours later: Cloudera and Hortonworks are entering a merger of equals that sees Cloudera stockholders owning roughly 60% of the combined company. Larry Dignan delivered the news flash yesterday: It puts together a company with roughly a $5 billion valuation and $750 million in revenues, with players that have been slowly advancing toward cash flow positive balance sheets. Until now, we thought that IBM would have been the more likely suitor for Hortonworks, given an OEM relationship that was finding increasing commercial traction. But as IBM of late has been busily pivoting the future of its business from Watson cognitive computing toward a boarder implementation of AI, not to mention the urgency of building the IBM Cloud business, there's been bigger fish to fry. The deal brings together two formerly fierce rivals.