Cloudera Scores Massive $65m Series E Funding – Can They Keep Soaring?

Cloudera, announced that they just closed $65 million series E financing.

Majority of the funding will be use to try to continue to expand their lead in the Hadoop market that they pioneered.   The working capital will be used to expand their sales and marketing capability and international footprint.  According to Cloudera they are expanding internationally as the big focus.

The new $65 million was led by Accel Partners, with support from Greylock Partners, Ignition Partners, In-Q-Tel, and Meritech Capital Partners.

“Big Data continues to fuel significant new business opportunities and revenue streams for our enterprise customers, spurring the need for new, large-scale data management solutions that can meet the needs of today’s demanding enterprise workloads,” said Mike Olson, CEO at Cloudera.

“This new investment will speed the expansion of our sales and support operations to meet increasing enterprise demand for our real-time, Hadoop-based platform, as we scale to address the enormity of this global market opportunity. At the same time, we remain unwavering in our commitment to the delivery of groundbreaking innovation across the Cloudera software platform and the open source Apache Hadoop stack. The way forward is clear and our mission is simple: we will shape and define the next generation of Big Data management solutions for the enterprise.”

Growth is Hard

Cloudera has been executing at an extremely high level for such a long time.  My question is can they continue.  Startups that experience rapid growth like Cloudera are at risk of “blowing up” from not using the “rocket fuel” properly.  Cloudera over the past year has seen a cast of new characters come in to the company.   Moreover, some of the early employees have recently left to go to startups which I don’t see as a red flag because it is natural for the startup guys who don’t like to be with structure.  Although turnover is happening Cloudera,  adding new employees fast at all level of the company presents a big danger.  Can the culture of the original Cloudera survive or do they turn into a big company too early.  With all the competition in big data for talent I’m sure this is a top priority for the management team at Cloudera.  The people side of the business is more important now than ever.

Rapid growth can kill a company or define it.  We will be watching and rooting for Cloudera, Hortonworks, and the other open source Hadoop companies.

John Furrier

John Furrier is founder, co-CEO, and Editor-in-Chief of SiliconANGLE, a new media company covering the intersection of computer science and social science. Furrier is also the co-founder and CEO of CrowdChat a social media platform for large-scale group conversations over hashtags. In addition to SiliconANGLE John runs Broadband Developments a private incubator and investment firm for creating new startups. Furrier lives in Palo Alto, California with his wife and four children.

45 Comments

  1. @VanessaAlvarez1 Cloudera has great band value in the category but not in the mainstream >> we have data coming out on this topic soon

  2. @furrier why no IPO yet? Not enough market traction I guess??

  3. @VanessaAlvarez1 did I say IPO? I don’t think that they are ready..but this round is to bulk up for a possible IPO is mkt is hot #vcplan

  4. @furrier @VanessaAlvarez1 they need to deliver fast/ the requirements are moving faster than them (or hadoop) – real time vs. batch big deal

  5. @furrier No, no, that’s just my thinking…that’s ALOTTA $$$ for someone to acquire

  6. @bradhedlund @VanessaAlvarez1 what’s interesting is Arista started when the market was soft and still made it.. but yes I agree go #SDN

  7. @bradhedlund @furrier @VanessaAlvarez1 problem with Arista is that they compete with cisco on the same concept. Their main threat is Cumulus

  8. @dvorkinista @bradhedlund @furrier @vanessaalvarez1 EMC JNPR HP can spend 1.5+ easily. Arista is 1.45B more real vs Nicira

  9. @bradhedlund @furrier @VanessaAlvarez1 Arista: commodity HW + Great SW. Software is the selling point. Cumulus: Amazing sw on anything.

  10. @rohit_x_ @bradhedlund @furrier @VanessaAlvarez1 Arista IP is in SW, and Cumulus has a much more interesting SW conception: switch == Linux.

  11. @rohit_x_ @bradhedlund @furrier @VanessaAlvarez1: Nicira = abstr/insulation layer that normalizes underlaying nw. Very important concept.

  12. @dvorkinista @bradhedlund @furrier hmm, I would tend to agree w/ amazing SW on anything, but easier said than done;/ Many moving parts…

  13. @VanessaAlvarez1 @bradhedlund @furrier all these switches are essentially made of the same stuff with identical architectures

  14. @dvorkinista Ok, I was thinking along the lines of diff architectures, standardizing that kind of environment

  15. @VanessaAlvarez1 commoditization leads to architectural normalization/standardization — think x86 servers -> beauty of Cumulus!

  16. @VanessaAlvarez1 @dvorkinista in which case it would help to have switch FW that acts as a HW abstraction layer to whatever OS it boots

  17. @dvorkinista @VanessaAlvarez1 hmm, that’s how I get my VMW NSXi :)

  18. @bradhedlund @VanessaAlvarez1 there’s BIOS/EFI… There could be infinite number of OSs, just like Cumulus… That’s the liberating beauty.

  19. @dvorkinista @bradhedlund yes, goal is for the it to not matter what OS is, or multiple

  20. @VanessaAlvarez1 @bradhedlund YES! Absolutely. Cumulus is just the reasonable beginning! But they do take it in an interesting direction…

  21. @bradhedlund come visit the next time you’re in Palo Alto! I’ll show you what we’re doing, you’ll love:) cc @dvorkinista

  22. @dvorkinista @VanessaAlvarez1 @bradhedlund They make switch act like a linux server… YOu interact with it like you interact with Linux…

  23. @dvorkinista @VanessaAlvarez1 @bradhedlund You can run any control mechanism on top of it as an agent.. Absolute freedom. No lock-in.

  24. @VanessaAlvarez1 @bradhedlund be careful who you cc on invites… witnessing me in person is not for the faint of heart :)

  25. @dvorkinista @bradhedlund Pffftt!! Heart of steel:)

  26. @dvorkinista ha! you’re located in Oracle territory?? I got to the gym out there, Pacific AC

  27. @VanessaAlvarez1 I live in redwood city.

  28. @dvorkinista @rohit_x_ @bradhedlund @furrier @vanessaalvarez1 Many paths to SDN – SW easy part. Agree Arista more intrstng vs. Nicira.

  29. @VanessaAlvarez1 I act, look and sound like Gru from Despicable Me.

  30. @Jakewk @rohit_x_ @bradhedlund @furrier @VanessaAlvarez1 software is actually harder than hw. Look what all networking vendors fail at?

  31. @Jakewk @bradhedlund @furrier @VanessaAlvarez1 Nicira has much more profound implications as layer that liberates from underlying arrch.

  32. @dvorkinista @bradhedlund @furrier @vanessaalvarez1 Concept IS important/interesting but Nicira aint the only way to skin that cat.

  33. @dvorkinista @furrier @rohit_x_ @bradhedlund @VanessaAlvarez1 the operative term there being ‘concept’

  34. @dvorkinista @Jakewk @rohit_x_ @bradhedlund SW is harder, especially when you take it out of the box and distribute it…

  35. @dvorkinista LOL! Oh well, then, now I *MUST* meet you:-)

  36. @VanessaAlvarez1 @Jakewk @rohit_x_ @bradhedlund all problems with SW are largely artificial vs HW: you can fix SW later is the evil.

  37. @VanessaAlvarez1 @dvorkinista @rohit_x_ @bradhedlund not that hard when you know what the target should look like.

  38. @dvorkinista @VanessaAlvarez1 so they are trying to be the Microsoft of network switches

  39. @bradhedlund @VanessaAlvarez1 Linux of network switches.

  40. @VanessaAlvarez1 LOL… Let’s grab a cup of coffee some time.

  41. @VanessaAlvarez1 I vouch for @dvorkinista – crazy brilliant /

  42. @dvorkinista @VanessaAlvarez1 Right, MSFT analogy was for the $ side of the model. Cumulus will throw in a lic fee surely.

  43. @bradhedlund @VanessaAlvarez1 but in a very original way.. their model is very very different.

  44. @VanessaAlvarez1 @dvorkinista Hellz Yeah. Im always down to see some cool tech.

  45. @rohit_x_ @dvorkinista The seal of approval;) SOLD, def let’s grab coffee soon

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