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Enterprise Cloud

Cloudera and Hortonworks Announce $5.2 Billion Merger

Cloudera and Hortonworks announced a $5.2 billion “merger of equals” that will combine two of the top players in cloud-based data management software. Both companies are building businesses around Hadoop, a type of open-source software that specializes in storing massive amounts of data on cheap hardware.

While the companies said in a press release that Cloudera’s AI and machine learning applications will pair well with Hortonworks’ software that works with internet-connected devices, the merger suggests that the commercial market for Hadoop isn’t as large as analysts once thought. Neither company has done well since going public, and Cloudera–which had its IPO last October–saw its shares plummet 40% in early April after warning investors of rapidly-slowing sales growth after its fiscal first quarter earnings. 

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