Cloudera Reportedly Filed IPO Paperwork

Cloudera Reportedly Filed IPO Paperwork

By Paula Bernier, Executive Editor, TMC  |  March 13, 2017

Cloudera Inc. is reportedly readying for an initial public offering that could yield a valuation of $4.1 billion.

The Palo Alto (News - Alert), Calif.-based company, which sells software and services that businesses use for big data analytics and machine learning, has filed IPO paperwork with the Securities and Exchange Commission, according to Bloomberg (News - Alert) Markets. Cloudera is apparently working with Banks of America Corp., JPMorgan Chase & Co., and Morgan Stanley on the effort. Media reports indicate that Allen & Co., Barclays Plc, and Citigroup Inc. are also involved.

Already Cloudera has raised about $1 billion in private funding. Investors include Intel, Google, Michael Dell’s (News - Alert) MSD Capital LP, and T. Rowe Price Group.

Cloudera’s solutions are based on Apache Hadoop software. Hadoop is an open source technology that runs on commodity hardware, and allows users to do compute on disc instead of on network storage, which can unnecessarily use lots of network processing. That makes Hadoop more affordable than alternative solutions.

Hadoop and various tools designed to work with it can allow for sophisticated clustering, data mirroring and more. That can be employed in a variety of applications. For example, some companies are using Hadoop to identify anomalies in credit card transactions to weed out fraud. Cloudera solutions also can help businesses drive customer insights, improve products and services efficiency, and lower business risks related to compliance and security.

Yahoo! and Google (News - Alert) were among the early champions of Hadoop, a technology around which a variety of companies including Cloudera, Hortonworks, and MapR have since built businesses. In fact, former Yahoo! engineer and current Cloudera executive Doug Cutting named Hadoop after his son’s stuffed elephant.

“Cloudera helps organizations achieve an insights driven culture through world class training, subject matter expertise (technical and industry specific) and through the enterprise data hub – a fast, easy, and secure platform for all your big data needs,” the company wrote in a June 2016 blog.

News of the potential Cloudera IPO comes on the heels of Snap Inc.’s recent IPO, through which it raised $3.9 billion.

Edited by Alicia Young