Hortonworks, which promotes Apache Hadoop to Big Data customers, has filed to launch a potential IPO (initial public offering). The move comes as Forrester Research predicts 2015 will be the year Hadoop becomes an enterprise standard. So, is it the perfect time for data scientists and IT departments to wrap their arms around Hortonworks? Here's a reality check.
During the first nine months of 2014, Hortonworks' revenues were $33.4 million -- up from $15.9 million for the corresponding first nine months of 2013, an SEC filing states. But net losses also grew dramatically, reaching an $86.7 million net loss for the first nine months of 2014, vs. a $48.4 million net loss in the first nine months of 2013.
Roughly 22 percent of Hortonworks' revenue currently comes from Microsoft, though that percentage figure will drop as Hortonworks continues to grow its overall revenues through additional customers, the company said.
According to Hortonworks, the company's Hadoop revenue opportunity is aimed squarely at the Big Data market. The SEC filing states:
"Enterprises are facing an increasing need to adopt big data strategies that will help them modernize their data center architectures, control costs and transform their businesses to succeed in an increasingly digital world. Inherent in this shift is a move from the post-transaction, reactive analysis of subsets of data to a new model of pre-transaction, interactive insights across a comprehensive and integrated dataset."
The filing continues: "We believe that enterprises that successfully adopt a big data strategy will succeed, whereas enterprises that fail to implement a modern data architecture will struggle to sustain competitive advantages.
While many companies (most notably, Cloudera) promote Hadoop offerings, Hortonworks thinks it can stand out from the crowd by delivering "enterprise-grade" capabilities such as:
- capability to centrally manage new and existing data types;
- ability to run multiple applications on a common data architecture;
- high availability and enterprise-grade security, management and governance;
- interoperability with new and existing data center infrastructure investments;
- stability and dependability;
- scalability and affordability;
- predictive and real-time analytic capability; and
- deployment flexibility.
Hadoop Market Forecast
So how big is the Hadoop opportunity? Hortonworks points to Allied Market Research, which claims the global Hadoop market (across hardware, software and services) will grow from $2.0 billion in 2013 to $50.2 billion by 2020 -- a compound annual growth rate (CAGR) of 58 percent. Still, that figure can be a bit misleading since it basically includes hardware from non-Hadoop companies.
Generally speaking, Hadoop is a hot market segment. But there are numerous competitors. In addition to Cloudera and Hortonworks, companies in the market include IBM and Pivotal, with Oracle, SAP and Tibco among the other players to watch.
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