Cloudera CEO Tom Reilly doesn’t often mince words when it comes to describing his competition in the Hadoop space, or Cloudera’s position among those other companies. In October 2013, Reilly told me he didn’t consider Hortonworks or MapR to be Cloudera’s real competition, but rather larger data-management companies such as IBM and EMC-VMware spinoff Pivotal. And now, Reilly says, “We declare victory over at least one of our competitors.”
He was referring to Pivotal, and the Open Data Platform, or ODP, alliance it helped launched a couple weeks ago along with [company]Hortonworks[/company], [company]IBM[/company], [company]Teradata[/company] and several other big data vendors. In an interview last week, Reilly called that alliance “a ruse and, frankly, a graceful exit for Pivotal,” which laid off a number of employees working on its Hadoop distribution and is now outsourcing most of its core Hadoop development and support to Hortonworks.
You can read more from Reilly below, including his takes on Hortonworks, Hadoop revenues and Spark, as well as some expanded thoughts on the ODP. For more information about the Open Data Platform from the perspectives of the members, you can read our coverage of its launch in mid-February as well as my subsequent interview with Hortonworks CEO Rob Bearden, who explains in some detail how that alliance will work.
If you want to hear about the fast-changing, highly competitive and multi-billion-dollar business of big data straight from horses’ mouths, make sure to attend our Structure Data conference March 18 and 19 in New York. Speakers include Cloudera’s Reilly and Hortonworks’ Bearden, as well as MapR CEO John Schroeder, Databricks CEO (and Spark co-creator) Ion Stoica, and other big data executives and users, including those from large firms such as [company]Lockheed Martin[/company] and [company]Goldman Sachs[/company].
You down with ODP? No, not me
While Hortonworks explains the Open Data Platform essentially as a way for member companies to build on top of Hadoop without, I guess, formally paying Hortonworks for support or embracing its entire Hadoop distribution, Reilly describes it as little more than a marketing ploy. Aside from calling it a graceful exit for Pivotal (and, arguably, IBM), he takes issue with even calling it “open.” If the ODP were truly open, he said, companies wouldn’t have to pay for membership, Cloudera would have been invited and, when it asked about the alliance, it wouldn’t have been required to sign a non-disclosure agreement.
What’s more, Reilly isn’t certain why the ODP is really necessary technologically. It’s presently composed of four of the most mature Hadoop components, he explained, and a lot of companies are actually trying to move off of MapReduce (to Spark or other processing engines) and, in some cases, even the Hadoop Distributed File System. Hortonworks, which supplied the ODP core and presumably will handle much of the future engineering work, will be stuck doing the other members’ bidding as they decide which of several viable SQL engines and other components to include, he added.
“I don’t think we could have scripted [the Open Data Platform news] any better,” Reilly said. He added, “[T]he formation of the ODP … is a big shift in the landscape. We think it’s a shift to our advantage.”
(If you want a possibly more nuanced take on the ODP, check out this blog post by Altiscale CEO Raymie Stata. Altiscale is an ODP member, but Stata has been involved with the Apache Software Foundation and Hadoop since his days as Yahoo CTO and is a generally trustworthy source on the space.)
Really, Hortonworks isn’t a competitor?
Asked about the competitive landscape among Hadoop vendors, Reilly doubled down on his assessment from last October, calling Cloudera’s business model “a much more aggressive play [and] a much bolder vision” than what Hortonworks and MapR are doing. They’re often “submissive” to partners and treat Hadoop like an “add-on” rather than a focal point. If anything, Hortonworks has burdened itself by going public and by signing on to help prop up the legacy technologies that IBM and Pivotal are trying to sell, Reilly said.
Still, he added, Cloudera’s “enterprise data hub” strategy is more akin to the IBM and Pivotal business models of trying to become the centerpiece of customers’ data architectures by selling databases, analytics software and other components beside just Hadoop.
If you don’t buy that logic, Reilly has another argument that boils down to money. Cloudera earned more than $100 million last year (that’s GAAP revenue, he confirmed), while Hortonworks earned $46 million and, he suggested, MapR likely earned a similar number. Combine that with Cloudera’s huge investment from Intel in 2014 — it’s now “the largest privately funded enterprise software company in history,” Reilly said — and Cloudera owns the Hadoop space.
“We intend to take advantage” of this war chest to acquire companies and invest in new products, Reilly said. And although he wouldn’t get into specifics, he noted, “There’s no shortage of areas to look in.”
The future is in applications
Reilly said that more than 60 percent of Cloudera sales are now “enterprise data hub” deployments, which is his way of saying its customers are becoming more cognizant of Hadoop as an application platform rather than just a tool. Yes, it can still store lots of data and transform it into something SQL databases can read, but customers are now building new applications for things like customer churn and network optimization with Hadoop as the core. Between 15 and 20 financial services companies are using Cloudera to power detect money laundering, he said, and Cloudera has trained its salesforce on a handful of the most popular use cases.
One of the technologies helping make Hadoop look a lot better for new application types is Spark, which simplifies the programming of data-processing jobs and runs them a lot faster than MapReduce does. Thanks to the YARN cluster-management framework, users can store data in Hadoop and process it using Spark, MapReduce and other processing engines. Reilly reiterated Cloudera’s big investment and big bet on Spark, saying that he expects a lot of workloads will eventually run on it.
A year into the Intel deal and …
“It is a tremendous partnership,” Reilly said.
[company]Intel[/company] has been integral in helping Cloudera form partnerships with companies such as Microsoft and EMC, as well as with customers such as MasterCard, he said. The latter deal is particularly interesting because Cloudera and Intel’s joint engineering on hardware-based encryption helped Cloudera deploy a PCI-compliant Hadoop cluster and MasterCard is now out pushing that system to its own clients via its MasterCard Advisors professional services arm.
Reilly added that Cloudera and Intel are also working together on new chips designed specifically for analytic workloads, which will take advantage of non-RAM memory types.
Asked whether Cloudera’s push to deploy more workloads in cloud environments is at odds with Intel’s goal to sell more chips, Reilly pointed to Intel’s recent strategy of designing chips especially for cloud computing environments. The company is operating under the assumption that data has gravity and that certain data that originates in the cloud, such as internet-of-things or sensor data, will stay there, while large enterprises will continue to store a large portion of their data locally.
Wherever they run, Reilly said, “[Intel] just wants more workloads.”