Big-data leaders Cloudera Inc and Hortonworks Inc have entered a deal to merge the two big data companies and create a brand new firm that is estimated to make an annual revenue of around $720 million. The deal which is more like an acquisition by Cloudera is a strategic move towards the big data market that is experiencing robust growth.

Big data is a term with strong implications that allow companies to collect data, evaluate it, and use it to generate customer satisfaction through the internet of things. The two companies, under the hood of the big data tag, have already made commercial use of the Hadoop open-source big-data software developed by Yahoo Inc and other similar software.

Commenting on the merger, Cloudera Chief Executive ‘Tom Reilly’ said that following the deal the companies would have greater capabilities to carry out innovation. He further added the time is simply perfect for the companies to work as a team under one banner.

Following the merger, the companies will lay greater emphasis on software containers that allow users to operate a number of applications on various computing ecosystem without the need to rewrite them. The newly founded company will have a prime focus to provide its customers with cloud computing right inside the respective data centers. This, in particular, is a growing trend called a hybrid cloud. Reilly also emphasized on the increasing trend of ‘internet of things’ in the industry. The newly formed company after the merger is expected to focus on the connected device as well.

Cloudera Hortonworks Merger

The core businesses of Cloudera and Hortonworks are complementary, noted Reilly. He further explained the plan behind the merging of the company stating that joining the capabilities of Hortonworks and Cloudera the companies will be able to come up with first of its kind’s enterprise data cloud which will run from the Edge to AI. Together, the companies will be able to achieve greater customer satisfaction and will be in a better position to support digital transformation.

The deal will also allow the companies to sell their respective products to each other customer’s base, said Hortonworks CEO, Rob Bearden. The transition would be quick and the customers of the company will get to experience the quickest transmission from Edge to artificial intelligence, according to a statement by Bearden.

The deal is a merger of arch and rival, according to SiliconANGLE analyst with research company Wikibon. Commenting on the deal, Wikibon Chief Analyst ‘Dave Vellante’ said that the many companies are going on losses for their failed efforts to sell services for open-source software. Many of prospective clients of Hadoop have chosen to exit as they find the services extremely expensive and not profitable, according to a statement by Vellante. He further added, the open-source project is difficult to support and make money from it.

Hadoop veteran Justin Borgman said that Cloudera had plans of the merger for quite some time. The market of Hadoop has been difficult for the two companies. The merger will allow the companies to establish a monopoly in the market and reap the best results while minimizing the losses.