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June 21, 2019

Is IBM Partnership the Helping Hand that Cloudera Needed?

By CBR Staff Writer

Cloudera, the Apache Hadoop-based big data and analytics company, has announced a strategic partnership with IBM, that will see the two cross-sell each others’ products: IBM will resell the Cloudera Enterprise Data Hub and Cloudera DataFlow; Cloudera will begin to resell IBM’s Watson Studio and BigSQL.

The announcement lifted Cloudera’s shares by 3.5 percent on Friday. It comes as the company scrambles to release a closely watched new product, the Cloudera Data Platform (CDP): the joint child of its $5.2 billion takeover of fellow Hadoop provider Hortonworks, due for release imminently.

IBM Cloudera Deal Builds on Existing Hortonworks Partnership

The agreement builds on a long-standing relationship between IBM and Hortonworks. Scott Andress, Vice President of Global Channels and Alliances, Cloudera, said: “By teaming more strategically with IBM we can accelerate data-driven decision making for our joint enterprise customers who want a hybrid and multi-cloud data management solution with common security and governance.”

He added: “We are pleased to have expanded our relationship with IBM, and I am very encouraged by the momentum that our companies have continued to generate.”

The agreement is a welcome lift for Cloudera, whose CEO Tom Reilly quit this month, while operating losses for the most recent quarter hit $35 million, customer churn spiked, revenues were far below consensus expectations and competition from public cloud rivals increased. Customers are holding off on renewals as they wait to see how the CDP performs vis-a-vis alternatives from public cloud rivals.

There is not shortage of companies promising a “one-stop-shop” for data management and analytics. CDP will be a managed SaaS that offers distributed storage and processing of large, multi-source data sets. Built around a container-native open architecture, Cloudera says it will be able to run across any conceivable private/public cloud configuration by early 2021. The pressure is on to deliver, fast.

See also: The Cloudera Bloodbath Continues: CEO Quits, Customer Churn Spikes, Stock Tanks

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