Cloudera and Hortonworks are the two most prominent names in the big data world. These two industry giants need no introduction and have been growing at an unprecedented pace in the past few years. If you own a Hortonworks or Hadoop development company, you would often wonder does the future have in store for you because your company’s success relies on the offerings of Cloudera and Hortonworks.

Insights

Here, we bring to you a list of insights from these companies to give you an idea of what the future holds for these companies and respectively for your company.

  • Cloudera has decided to go public by filing IPO with securities exchange commission. Now, the experts suggest that there is an underlying reason for Cloudera to go public. If reports are to be believed, Cloudera has been making huge profits but its expenses are outdoing the profits and therefore, it intends to get funding by going public.
  • Hortonworks on the other hand has been doing quite well. According to the press release on their official website, Hortonworks made a revenue of whooping $184.5 million. The CEO credited enterprise users for this success and estimated that this would grow in the coming years because the users are inclined to leveraging on the benefits rendered by the Software.

Analysis

As a Hadoop development company, you would have started to worry. But, not yet. Although, looking at the plain information above suggests that Cloudera is going downhill and Hortonworks is doing well. The fact is that both these companies, especially Hadoop is the backbone of the big data industry. It is probably the most used big data  analytics solution at the moment.

The problem is that the current business is benefiting only from the repeat customers who renew subscription. This does not imply that no new customers are being added. But, the rate of new customers is less in comparison to the rate of renewing customers. Moreover, new customers take time to get accustomed with the offerings and realize the full potential before making further purchases and upgrading.

Hadoop or Cloudera has more number of customers that renew. The phase that it is going through is a common phase in business where expansion is happening. More and more vendor partners are joining in rendering consultation and analytics services so that the customers realize the value that the product lends to the business in contrast to just buying it for trial and then not ever returning to it.

Conclusion

With the results of Q1, it seems that both the companies are going strong and showing a positive trend towards profitability. The results of Q2 would be out in a matter of months and looking at the market, it would not be wrong to say that the expected result will also be positive. Let’s watch out for what more these companies will offer to remain stable in terms of profit and to create products that can revolutionary in dealing with big data.