A key element of the big data business is getting what much of computer technology secretly craves: Normality.
On Tuesday, several
companies involved in analyzing digital information announced a common
set of standards for Hadoop, perhaps the most widespread framework for
technology analysis.
The companies,
including General Electric, Hortonworks, IBM, Pivotal and Verizon, said
they would develop their products and services on a common core of
Hadoop’s key components.
Common standards often
follow early development of software and hardware. If more companies
use the same stuff, it usually helps with things like learning and
certification, application development, and new products.
“What we’re seeing is the rise of algorithms in new customer engagement models,” said Paul Maritz, the chief executive of Pivotal, a company that builds software for other companies and offers products for online software development.
Hadoop is a method for
distributing, managing and processing very large and often disparate
amounts of data. It is open-source software, and comes out of research
at Yahoo and Google, among other places.
Those two companies
had businesses that involved collecting lots of behavioral online
clicks, which made them among the first companies that had to handle big
files of so-called unstructured data (as opposed to more conventional
data, like payrolls). As more people, companies, and sensors move
online, their unstructured data needs have become everyone’s necessity,
and Hadoop has flourished.
The technology has
been somewhat difficult to use, however, and there are concerns that
deepening uses of different kinds of Hadoop, even with slight
variations, could slow down the market.
“This is consistent
with moving the market along,” said Herb Cunitz, the president of
Hortonworks, a major provider of Hadoop technology. “It’s an initiative
everyone is welcome to join.”
Standards have
historically been a way for big technology companies to gain an edge
over the competition by ensuring their knowledge is put to maximum use.
Open source was considered a way around that, as well as the slowdowns
caused by things like patent disputes.
Hadoop is getting to
be big business. Hortonworks went public in December, and currently has a
market capitalization just under $1 billion. Cloudera, the largest
Hadoop vendor, took a huge funding round last March, including $740
million from Intel for an 18 percent stake.
Cloudera was notably
absent from Tuesday’s announcement, which took place at a Pivotal event
in San Francisco. Down the road in San Jose, Cloudera was participating
in its own big data event.
Pivotal, a company primarily spun out of assets
of EMC and VMware in 2013, also announced that it has revenue of over
$100 million in 2014. Over $40 million of that, Mr. Maritz said, came
from subscription revenue from Pivotal’s big data analysis product.
General Electric has invested in a data analysis platform called Predix. In December it announced a partnership project
with Japan’s SoftBank to sell the product in Japan. IBM has been
selling Hadoop for several years, but has redoubled efforts as it styles
itself as a cloud computing company.
Mr. Maritz said Cloudera was “looking” at the common standard. “They have been invited,” he said.
Mike Olson, co-founder
and chief strategy officer of Cloudera, said his company thought the
initiative was at minimum redundant. “We believe the Apache Software
Foundation is where the discussion should take place,” he said,
referring to the open-source group that supports Hadoop and many other open-source projects. “The open-source world is a level playing field.”
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