At a recent Analyst Day in San Francisco, Cloudera all but declared the company’s dominance of the core Hadoop distribution market. The case was made around three measures of success, namely: product strength, market results, and strategic alliances.
- Product strength. Cloudera demonstrated significant contributions to many open source Hadoop projects alongside differentiated functionality for added value.
- Market results. Cloudera disclosed key milestones of annual revenue in excess of $109m and more than 535 paid customer accounts, together representing over 50% of the Hadoop distribution market share.
- Strategic alliances. Cloudera identified over 1,450 partners, spanning technology collaboration with independent hardware and software vendors, value added resellers, systems integrators, and other adjacent solution providers.
The full ESG Brief, Cloudera Builds Market Momentum, is available to subscribers.
Cloudera is in an enviable position among the commercial Hadoop distribution vendors, and the big data market as a whole. The company has established significant momentum in product development, services practices, customer adoption, and partnerships. This has not been by luck or happenstance. The company leaders and staff demonstrate a solid understanding of what’s important to their success and more importantly, their customers’ success. While revenue is rapidly increasing, and even deliberately shifting from services to more profitable software, it is noteworthy that no Hadoop vendor is showing net profits as yet and the total Hadoop market size is actually still rather small as compared with the bigger world of databases, data warehouses, and analytics.
Cloudera has carefully identified what it needs to do and why this matters to its customers. Focusing on the enterprise will establish the company further as leader in the space, but it should be cautious about becoming overconfident and alienating various stakeholders or missing out on otherwise worthy technology developments from its peers in the market. Great vision and execution combined with a little more openness to the broader market should prove advantageous in its quest for growth.