IBM still sees value in Hadoop-based technologies

Dive Brief:

A new partnership from IBM looks to connect the blue chip company to a market some analysts fear is on its way out: Through a partnership with Cloudera, IBM will explore go-to-market programs that jointly target the Hadoop ecosystem.
The strategy means IBM can resell Cloudera Enterprise Data Hub and Cloudera DataFlow to customers. In turn, Cloudera can resell IBM's Watson Studio and BigSQL.
The partnership expands on an existing agreement between IBM and Hortonworks. Cloudera merged with Hortonworks in 2018, forming a clear front runner in the Hadoop space.

Dive Insight:

News of the partnership between Cloudera and Big Blue come at a time of consolidation, and contraction, for the Hadoop-based data analytics market.

The market shift toward the public cloud has hit companies like Santa Clara, Calif.-based MapR. The company said it may layoff 122 staffers by July 3 unless it can finalize a life-saving transaction.

Cloudera admitted pressures from cloud hyperscalers impacted its earning projections for the year ahead. In connection with the results, CEO Tom Reilly stepped down.

Analysts say the market as a whole failed to adjust to trends, including the rise of AI applications, in a timely manner.

But IBM points to the partnership as a sign of trust in Hadoop technology.

Clients, the company said, can use tools like Watson Studio to access and share data without having to build integration software.

"Our work with Cloudera, and prior to that, with Hortonworks is a great extension of our efforts to help clients leverage Hadoop in meaningful ways, to store and process big data," said Paul Rivot, strategic alliance executive at IBM Analytics.

For Cloudera, the potential of a joint go-to-market strategy with IBM lies in tapping into a broader customer base as it fights to remain competitive in a market dominated by Microsoft.

Banding together with IBM, the company hopes to "accelerate data-driven decision making for our joint enterprise customers" who seek a hybrid and multicloud data management solution, said Scott Andress, vice president of global channels and alliances at Cloudera.