What the Cloudera and Hortonworks merger means

The two leading companies in the Big data space and former rivals Cloudera and Hortonworks had announced earlier this month that they shall be entering into a merger.

The merger deal is expected to take a while to close and it is expected that the transaction will be completed by the first quarter of 2019.


Cloudera is a US based company that was started out by talents from companies such as Yahoo,Google and facebook. The company started out to provide big data platform that was to be built upon Hadoop. The company provides services, software and support that is available both in premise and also across multiple cloud providers. It provides platform for data warehousing, machine learning and also for analytics.


Hortonworks is a California based company that was started out in July 2011. the company focuses on the open source software that is designed to manage data and processing for IOT and also for Machine learning.

Both of the companies have become top players in the big data and the data analytics fields. Although there were very few competitors to these companies when they were found, the scenario has now changed and there are several other companies in the bigdata space today.

The company spokespersons have reportedly stated that the merger between these companies will enable them to become a next-generation data platform.

Under the merger Cloudera Stockholders are to hold 60% of the equity of the combined company and Hortonworks stockholders will be holding the remaining 40 %. The Merger is expected to create a better unified platform and industry standard for AI and also will be beneficial to the customers, the partners of the companies and also to the community as a whole. The companies are having a combined fully-diluted equity value of $5.2 Billion as per the closing prices on 2 October 2018.

What the merger will mean to the customers?

The merger which is expected to be complete by the quarter of next year will have a substantial effect on the customers of the companies. The products of the companies Cloudera and Hortonworks which are CDH and HDP, HDF respectively will be supported and maintained for at least three years after the merger is been completed.

This merger also means that the customers and partners of each of the companies will have access to a larger community and also will benefit from having a single standard to work on.

The companies will also be working on ensuring the cross porting of their offerings which are Hortonworks DataFlow, Cloudera Data Science Workbench (CDSW), and Cloudera’s Workload Experience Manager (Workload XM). This will ensure that they work on both platforms. This allows the customers to have access to the innovative products offered by both the companies.

The combining of Cloudera’s investments in the data warehousing and machine learning fields along with those of Hortonworks in the end-to end management the resultant combination is expected to create a standard for cloud data management. This merger of the two leaders is surely going to create a huge change in the Big data industry and impact on both the users as well as other players in this industry.

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DataFactZ is a professional services company that provides consulting and implementation expertise to solve the complex data issues facing many organizations in the modern business environment. As a highly specialized system and data integration company, we are uniquely focused on solving complex data issues in the data warehousing and business intelligence markets.

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