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9:40 am ET
May 5, 2014

Deborah Gage

As Big Data Market Booms, Hadoop Player MapR Announces Record Growth

  • Article
  • Comments (1)
  • Cloudera

  • Doug Cutting

  • Hadoop

  • HortonWorks

  • Intel

  • John Schroeder

  • MapR Technologies

  • Pivotal

  • By
  • Deborah Gage
    • @deborahgage
    • Deborah.Gage@wsj.com
    • Deborah Gage
    • Biography
      • @deborahgage
      • Deborah.Gage@wsj.com
      • Deborah Gage
      • Biography

    Intel Corp.’s recent investment of $740 million into Cloudera Inc., along with a $100 million investment in Hortonworks Inc. led by BlackRock and Passport Capital, leaves no doubt about the importance of the market for Hadoop—the big data processing software named after a toy elephant belonging to Cloudera Chief Architect Doug Cutting’s young son.

    MapR Technologies Chief Executive John Schroeder
    MapR Technologies

    But Cloudera and Hortonworks are not the only Hadoop companies that are growing. MapR Technologies Inc. will announce Monday that first quarter bookings for its distribution of Hadoop since last year have tripled and that one of its customers has generated more than $1 billion of revenue using MapR Hadoop.

    MapR Chief Executive John Schroeder said examples of such high-value uses would include risk and fraud analysis or trade analytics, although he declined to say how the software was used in this case.

    In addition, one MapR customer in each of the following industries—financial services, networking/computers, software, online/Web, ad media, telecom and market research—have spent more than $1 million with MapR, the company said.

    Hadoop customers tend to be secretive about how they use the Big Data software because it’s strategic to their businesses.

    MapR’s approach to Hadoop, which is an ongoing open source project, is to try to stay ahead of the open source developers, adding enough capabilities that it can license MapR like a conventional proprietary software product. Consulting services that help customers figure out how to use Hadoop are more expensive to provide, and MapR, which claims more than 500 customers, has been getting 90% of its sales from software licenses.

    Still, it’s early days for Hadoop, which was originally designed for computer scientists and is hard to use, and some companies are experimenting with the open source version. Gartner last month estimated about 1,000 Hadoop systems in production, The Wall Street Journal reported.

    Hadoop implementations from Cloudera, Hortonworks, MapR, International Business Machines Corp. and Pivotal (a joint venture between EMC Corp. and VMware Inc.) are all present in the market, according to Pepperdata Inc. CEO Sean Suchter, whose company makes Hadoop run more reliably. He said Cloudera is in the lead initially and others are catching up.

    Intel, which Mr. Suchter said he’d not seen in the market, is folding its Hadoop implementation into Cloudera’s.

    Intel’s investment in Cloudera “creates battlelines,” according to one Hadoop investor, particularly with other hardware vendors, and it sets the stage for more investments and partnerships in what could become one of the largest IT markets of the decade.

    “We all have enough resources that every strategic is talking to each one of us,” said Mr. Schroeder, who said he also talked to Intel. “Sometimes one plus one is over three, and with others it’s a question of how much energy to put into the relationship.”

    MapR so far has raised $64 million from investors including Lightspeed Venture Partners, Mayfield Fund, New Enterprise Associates and Redpoint Ventures and is discussing a mezzanine round with late stage and strategic investors, he said.  The company also has an alliance with Hewlett-Packard Co. around HP’s Vertica analytics software, which has been integrated with MapR, and expects to develop more relationships like that.

    Write to Deborah Gage at deborah.gage@wsj.com. Follow her on Twitter at @deborahgage


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