After its IPO, Hortonworks is a $1 billion Hadoop company (again)

Shares for Hadoop vendor [company]Hortonworks[/company] finished their first day of trading at $26.48, up from $16 when the company priced its initial public offering on Thursday night and Friday’s opening bid of $24. The company’s total market cap is $1.1 billion at the close of trading Friday, matching the $1.1 billion valuation at which the company raised its last round of venture capital.

Hortonworks IPO day stock chart

There were a lot of questions and speculation heading into Friday’s IPO, fueled by Hortonworks’ lackluster revenue and profit numbers on one hand, and excitement over the Hadoop marketplace on the other. There’s a general belief among information technology types that Hadoop will be ubiquitous in time, the backbone of data architectures for decades to come, but it’s still a cash-intensive business for companies selling it.

Some felt that prospect could scare off public market investors, who are used to software companies with nice, fat margins. It’s especially true for Hortonworks, which offers only open source software and makes its money on support and services. Hortonworks was founded and launched in 2011, after a group of engineers spun the company out from Yahoo, which had been driving much of the work on the open source Apache Hadoop project. But the stock rallied late in a trading day that was awful for most major stocks.

No doubt Cloudera and MapR, Hortonworks’ two largest rivals in the pure-play Hadoop space, will be watching the company’s stock closely over the coming months. MapR also claims a private-market valuation of more than $1 billion, while Cloudera’s valuation is more than $4 billion. If Hortonworks’ stock can maintain steady performance, it might inspire the company’s competitors to test the market for their Hadoop business that are fueled largely by software licenses.

Mo’ money, mo’ data, mo’ cloud on the Structure Show

[soundcloud url=”https://api.soundcloud.com/tracks/180964822?secret_token=s-MTCRX” params=”color=ff5500&auto_play=false&hide_related=false&show_comments=true&show_user=true&show_reposts=false” width=”100%” height=”166″ iframe=”true” /]

 

If you want an informed opinion on the state of the cloud and the relative merits of the players, Sebastian Stadil’s a good person to ask. Founder and CEO of Scalr, a multi-cloud management company, he keeps his finger on the pulse of all the players and — perhaps more importantly — their customers.

On this week’s Structure Show he handicaps how [company]Google[/company] and [company]Microsoft[/company] are doing in public cloud not just technologically but in terms of their sales strategies which, when it comes to enterprise accounts, may be just as important as technology. And of course the company everyone is measuring by is [company]Amazon[/company] Web Services which leads the pack.  Oh, and he’s got lots to say about the OpenStack ecosystem as well; cloud technologies from [company]Oracle[/company], [company]Joyent[/company] and more.

It was a busy week in the funding arena with Nginx, DataGravity, and Mesopshere all getting substantial VC rounds ($20 million, $50 million and $36 million respectively.) That ain’t chicken feed and we talk that out.

And, of course, this week’s Hortonworks IPO puts the spotlight back on Hadoop and big data in a  big way, which gives us a chance to tout Gigaom’s upcoming Structure Data event which will feature talks from Hortonworks CEO Rob Bearden, Cloudera CEO Tom Reilly and MapR CEO John Schroeder.

 

Sebastian Stadil, CEO of Scalr

Sebastian Stadil, CEO of Scalr

 

SHOW NOTES

Hosts: Barbara Darrow and Derrick Harris

Download This Episode

Subscribe in iTunes

The Structure Show RSS Feed

PREVIOUS EPISODES:

Why CoreOS went its own way on containers

More from Facebook on its new networking architecture 

Do you find OSS hard to deploy? Say hey to ZerotoDocker

All about AWS Re:Invent and oh some Hortonworks and Microsoft news too

Ok, we admit it. Google may be serious about cloud after all

 

Why the Hortonworks IPO could be a bellwether for Hadoop

Hortonworks’ IPO filing on Monday shows that Hadoop is still a resource- and risk-intensive business, but also suggests it’s one that public market investors will be willing to back. It might also start the ball rolling for long-anticipated moves in Hadoop.

Hortonworks is pitching an object store for Hadoop

Some members of the Hadoop community are proposing a new object storage environment for Hadoop, which would let the big data platform store data in a manner similar to popular cloud data stores such as Amazon S3, Microsoft Azure Storage and OpenStack Swift.