Intel Invests Big In Cloudera

Intel has announced a great deal of investing $740 million in cloudera which is a big data startup of silicon valley. Cloudera is being developed as a rival to Hadoop, a program for dealing with big data applications and multiple servers. With this Intel which sells server systems’ chips gets a stake of 18% in Cloudera which also means that Intel is the largest investor in the project. The company didn’t disclose any financial terms while announcing the deal on last Thursday.

Cloudera has raised a whooping $900 million through its funding activities. This is the largest investment ever made by Intel group. Cloudera was founded in 2008 and has pioneered Hadoop’s market since then. Last year Intel started developing its own Hadoop version but now has ditched the idea and will support Cloudera under the deal.

Funding will be used for improving sales in Europe, Asia and china as said by Cloudera’s chief financial officer – Jim Frankola. The news about investment in Hadoop – based Cloudera came as a surprise as the market didn’t expected such a huge investment. The entities were purchased by Intel outside of Cloudera as confirmed with TechCrunch. This means that the whole amount did not go to the company. We didn’t have any comments from Intel as well as Cloudera regarding direct purchase of shares from it. $160 million was raised by Cloudera earlier this month from a number of top tier investors such as Google Ventures. The 18% stake gives Cloudera a value of $4.1 billion putting it into the ten figure club. Cloudera analyzes and synthesizes big data sets using Hadoop. AOL is among its top customers.