| SAN FRANCISCO, March 31
SAN FRANCISCO, March 31 Intel Corp's
investment in Cloudera announced last week amounts to $740
million and gives the chipmaker an 18 percent stake in the
distributor of software for crunching Big Data, Cloudera said in
a press release on Monday.
The chipmaker's investment values the startup, expected to
go public later this year, at about $4.1 billion.
In the release, Cloudera announced the completion of a $900
million round of funding, which it said includes Intel's
previously undisclosed stake and another $160 million that was
announced earlier in March from T Rowe Price, Google Ventures
Intel said last Thursday it had made a "significant"
investment in Cloudera and that it would make the fast-growing
startup its preferred distributor of "Hadoop" data management
Like rivals HortonWorks and Pivotal, Cloudera focuses on
helping corporate customers manage data through Hadoop, an
open-source software system that can sort and analyze massive
amounts of information, increasingly called Big Data, generated
through the Internet and mobile devices.
As part of the deal, Intel will transition away from its own
customized version of Hadoop that it had been promoting as
optimal for Intel server chips.
The size of Intel's investment in Cloudera and the end of
its own Hadoop customization underscores a willingness by CEO
Brian Krzanich to move decisively since taking over a year ago
with the personal computer industry in a tailspin.
Cloudera is only one of several Silicon Valley startups to
receive multibillion-dollar valuations from investors recently,
a trend that has some on Wall Street concerned about lofty
Last week, Facebook Inc raised eyebrows when it said
it would pay $2 billion for Oculus VR, a two-year-old virtual
reality startup that has yet to put a product on the market.
Intel hopes that encouraging more companies to leap into Big
Data analysis will lead to higher sales of its high-end Xeon
server processors. The chipmaker believes that hitching its
wagon to Cloudera's version of Hadoop, instead of pushing its
own version, will make that happen faster.
With Intel's core PC market shrinking, the chipmaker's
server business is becoming a larger component of the company's
profits. But its growth has recently fallen short of
Big Data is a key part of the Internet of Things, a term
referring to the increasing connectivity of everyday devices
from cars to smoke alarms.
Finding ways to analyze and make use of vast amounts of data
collected by those smart devices is becoming a major opportunity
for IT companies including Intel.
The global market for Big Data technology and services is
expected to expand at a 27 percent annual rate to $32 billion
through 2017, according to market research firm IDC.
After falling behind in making chips for smartphones and
tablets, Intel aims to make sure it is a major player in the
Internet of Things by supplying processors used in new devices
as well as the server hardware and software used to analyze the
data those devices create.
Intel's bet on the success of Cloudera dwarfs its previous
investments focused on data center technology. In 2007, Intel
invested $218 million in VMWare, giving it a 2.5 percent stake
in that data center software maker.
(Reporting by Noel Randewich; Editing by Sandra Maler)