 News and analysis from Big Data SV 2014 is brought to you by headline sponsors, Actian, accelerating Big Data 2.0 and WAN Disco. We make a dupe invincible. Welcome back everyone to day two wrap up. This is Big Data SV, Big Data Silicon Valley, the hashtag Big Data SV. Go to crowdchat.net slash Big Data SV, where all the action is. This is Silicon Angle and Wikibon's the Cube, our flagship program. We go out to the events and extract the signal from the noise. We're live in Santa Clara, California to Hilton, right across the street from the Santa Clara Convention Center where Stratoconference is taking place. We are eyes and ears all over Stratoconference, like a blanket. Our live coverage here at the Big Data event here at the Hilton. Amazon's here, the Big Data party tonight. A lot of events map are big action happening at the Hilton, Big Data SV. I'm John Furrier, the founder of Silicon Angle. I'm John Michoos. Dave Vellante, co-founder of Wikibon.org and Jeff Kelly, senior analyst at Wikibon on Big Data. Guys, wrap up here just to summarize day two. We got one more day tomorrow is more of the same, Vistrada. I mean, we're seeing a sell out. We're seeing every slot filled keynotes. They went from, I think, 10 minutes to five minutes to get more keynotes in. So rapid fire of speakers. Their format's changing a little bit, but still, they're selling out the tickets. All the sponsors are sold. New startups and packed house for Stratoconference here in Silicon Valley. We're covering the innovation. Going the extra mile covering the startups. Got the analysis. But it's all about Hadoop meets Big Data analytics, big announcements, and you start to see, Dave, the vendors finding their groove. The ground settling, you're seeing the different Hadoop players, Cloudera, Hortonworks, MapR finding their swim lanes. Peace. The three families are having peace among themselves, right? Different approaches. So what's your take? So first of all, yes, Stratoconference is sold out. We were over there last night and everything is sold. I mean, we're talking about the spaces on the carpet are being sold as advertisements. So it's a very good BD event. You talk to people here. They said that they're sort of getting lost in, I mean, the customers are getting lost in the business development that's going on, but it's good BD event. Whereas in the early days of Stratoconference, it was a big data science event. So that's sort of evolved. I think the other thing is, as you said, John, you're seeing real traction, especially from sort of the big three distro vendors. They're not only evolving their business model like Cloudera, continue to tune it, fine tune it, and so forth, but MapR, Cloudera, and Hortonworks, all three of them are doing business. This is a big beach and they each got their corner of the beach or they strip a sand on the beach. It's a sunny day and they're doing business and you're going to see some IPOs come out of this. You certainly already have with guys like Splunk and Tableau, I think I would put them into a big data adjacent category, but some of the core Hadoop vendors are going to be going public soon, which is great because then we'll start to get some real visibility on Jeff Kelly's numbers. I look forward to the IPOs to validate my numbers. We're also talking about some people dropping out and maybe tapping out, but all growing or consolidating in an ecosystem. So Jeff, I want to ask you the question, two things. One, the $50 billion market number, you're targeting that number. One, and the other question is, how does the market look from a formation standpoint? Are things settling? Is it still dynamic? What's your take? Well, certainly things are still dynamic, but they are starting to take shape. So as I mentioned earlier today, I think what we're going to see a lot more this year, and we've seen it this week here is Strata and Big Data SV is we're going to see a lot more partnership news and integration related news and reseller arrangements between these different ecosystem partners because it's very much as an ecosystem. Big Data has got a lot of different parts. It's not one thing. It's not just Hadoop. It's not just analytics. There's data integration. There's security. There's all different components to this. And really, with the exception of a couple of the, I guess, mega vendors, there's no one company that's got the complete platform. So you're going to continue to see partnerships. And I think that's an important evolution of this market because it's clearly showing that the technology now is solid enough where these companies are ready to start integrating, getting out into the field and actually deploying this stuff in production. And also starting to see the partnerships. So guys, big news to me, the big game-changing sentiment that I'm feeling and also through the announcements and the news is, Juan Hortonworks' announcement with Red Hat. They were relationship with Microsoft. The Red Hat News is an expanded partnership that's significant, that validates and puts an exclamation point on their strategy. You're seeing Cloudera with the Enterprise Hub go in that direction. And then recently, we had on theCUBE today, we had two entrepreneurs turned CEOs, if you will, oh, in this case, Collins and more of a general manager, HP and the MapR deal, Dave. I mean, that's very interesting. And that could be the big dark horse in this entire show is that the MapR, John Schroeder, he's no dummy. He knows this business. He's an entrepreneur. He can see that relationship. HP needs a dance partner, not a bad fit, Dave. So let's talk about the big three. So when you're talking about MapR and HP, I think you're right on, John. And you were asking John Schroeder really good questions. Like, are you afraid you're going to get lost inside of the HP machine? And you know that, speaking from experience. But I think he had- Getting lost? Yeah, you had to get lost. But you know what I'm saying? It's sometimes hard to navigate, but he was very confident. Now, in the case of Hortonworks, you're right. The Red Hat deal is a big deal because the significance of that is, Hortonworks has now knocked down the two big operating systems, Microsoft with Windows and Red Hat with Linux. So they've locked in, as partners, those two companies. For Cloudera's point of view, what I learned here this week is that Cloudera is getting traction with some of the big SIs, like Accenture, Deloitte, Ernie Young, and Capgemini. And that's how companies like Cloudera are going to be able to compete with the likes of IBM, who has deep domain expertise and can compete with those companies that I mentioned like Accenture. And so Cloudera, I think, has an advantage there in terms of they were the first to market and they're leading a lot of the trends. So a lot of the SIs know who they are and are willing to work with them. That's a good point. I think from Hortonworks point of view, I mean, give them a lot of credit. Their strategy has not changed one Iota. It's remained open and use that openness to leverage partnerships and reseller arrangements to get mass adoption in the enterprise. From Cloudera's perspective, I would just echo what you just said. If they're going to try to compete with IBM, which is their stated goal, they need the services partners. And the services partners, the extensions of the world, they're competing with IBM as well. They need a partner. They need a dance partner. And this kind of relates to what I said earlier about, this is an ecosystem play. There's not one technology or one service that kind of covers it all. It's many moving parts. So again, we're going to continue to see those kind of partnerships. But I think on the one hand, we're going to see all three of those companies can succeed and do well. The market's big enough for that. But I still think, look, there's still going to be some, they're still going to fight it out. This is not, I don't think they're playing nice. Maybe I think we might disagree a little bit on that, John. I think it's still, I think it's still a pretty heated competition. There's room for them all to succeed. But don't get it. I mean, they want to beat you on another. There's still, obviously, skirmishes in the open source community. There always will be. That's just the way it is. But I think from a fundamental business model standpoint, I think, you know, it's a nice position here. I think it's all kind of, there's a balance of power there. They're all got their, no, there may be some cognitive dissonance around their decisions. I mean, some may like the other guys position, but the other, that's just the race. Certainly that doesn't appear to be the case right now. I think right now they're all kind of in enough separation in terms of competitiveness where I think they're fine. I think it's comfortably numb for them right now with respect to kind of where they're going. I mean, Cloud Air clearly going after the enterprise. I mean, they basically changed their pricing, Dave, to accelerate the sales inhibitor or calls saying, are you in bucket A, B or C? And then if you're flag-shared, we go right to outcome discussions, which is essentially a long sales cycle, but lucrative if they can penetrate. So to me, that's a risk on Cloud Air. If they can penetrate those sales cycles, they're gonna win. So I don't know the distribution of their sales, but you know, my guess is mostly mid-range, but we'll see. Well, I think the two, the Cloud Air repricing was all about, I mean, first of all, it was too complicated. The transaction model was too expensive for them because I'm sure they're going back and forth with people. That was one of those deals that, at some point early on in the cycle, somebody said, hey, we can optimize revenues if we sell each of these little piece parts as little bites. And then over time they realized, well, it just got too complicated and why don't we just bundle them all together and then focus on adoption and not worrying about, okay, negotiating each little piece part. I also want to add, talk about Pivotal. So Pivotal all of a sudden took the misfit toy, EMC, VMware took the misfit toys, threw them in the Pivotal bucket and all of a sudden, boom, we got a $300 million company, a leader in big data overnight with the data lake marketing, that's Pivotal's deal, EMC, VMware, good marketing, Pivotal has now joined that fray. And so they're out pushing their messaging and they're doing business. They're doing business because they got relationships, they got partnerships and it's kind of the EMC Federation, the EMC mafia, they know how to do business. And so they're sort of just almost forcing themselves on the world and they're gonna get some production out of that. The other one is IBM. IBM's a leader in this space, they went from nowhere, not even in the discussion to number one and you've quantified that. And number one in a substantive way, there's a lot of action in services, we heard a lot of discussion about that, 40% of the business in your revenue report comes from services, IBM's the number one services company out there and they are just again doing a lot of business in this space and people can criticize IBM and say, oh, they're sort of old school and modern architecture, blah, blah, blah, blah, IBM's about doing business. So those are two other companies that at different ends of the spectrum, but they're players. Guys, what do you guys expect now? What's the game-changing take here, day two and the summer rise? And tomorrow's gonna be kind of a heavy day for us but mostly friends of the queue will track some more signal but I think right now we got a good feeling in the show, Dave. Day two is really kind of where you get the meat and the bone in terms of the vibe. What's your take? Let's go out on a limb and saying, what is the game-changing moment right here? This moment for big data. Well, the missing moment is apps. Where are all the big data apps? We've been talking about that for a long time. Jeff, a couple of years ago, you predicted this is gonna be the year of the apps. My goals and predicted that never happened. Why is that? Because the infrastructure and the ecosystem has to mature, that's happening, but it's happening very slowly. I can't wait to hear what Abhy Mehta has to say because there's a company that's actually developing the big data apps. So I'm excited about that to hear what he has to say. So I'm still squinting for that game-changing moment, John, but I'll bet you you have a sense of what that might be. What do you think? Well, I mean, I look at the startups in Silicon Valley as a good barometer of how I call the patch of innovation where the mushrooms grow, the manure of innovations, money, ideas, and just seeding and fertilizing all the innovation. That to me, that's a bellwether. Then you look at the financing market, Dave, and you look at what the rounds are going for, AB, financing, series A, series B, then it'll be what the M&A market looks like, and then the IPO, it's the latter of how I benchmark it. And right now, valuations are very high. The startups, I'm not impressed with the startup situation. I'm really not, I gotta say. It's like looking at the startups, not as much advanced thinking and big data as I would expect some folks to have. A lot of gimmicky apps out there on the consumer side, but I haven't yet seen the game-changing enterprise. What about ClearStory? I like ClearStory. I think the idea of what Charmille is working on is great. See, this is a great example. You look at Charmille at ClearStory. That's a hard problem, and it's not easy to simplify the knowledge worker, and they're doing a great job to make visualization and analytics work. But again, I wanna see more startups solving real computer science problem. That's why I like what Spark's doing. I like some of the computer science engineering stuff happening at Stanford and also at Berkeley. To me, I think a whole other crop of innovation is gonna come out of that wave. I have yet to see the startups on the other side. There's some good stuff being funded. We know platform, continuity, guys we know. Those are real guys with jobs, but I just don't see a lot more guys. And when I walked through the show over there at Strada, it's not a lot of names. I'm not shaking my head going, wow, that's kickass. I'm not blown away at all. I don't fall out of my chair. So to me, that's a real indicator. Yeah, I think when it comes to apps, look, I think we were a little premature in predicting the year of big data applications, and part of that is related to the underlying infrastructure, and there's still room for improvement in terms of making Hadoop rock solid for the enterprise. Made a lot of progress, but, and this is a very fast moving market, but it's still gonna take time. These things don't happen overnight. These are hard problems people are trying to solve. The analytics, the complexity of these analytic problems that people are trying to solve is challenging. To deliver that into an actual end user polished application takes time. Let me finish my thought too on that, because the startups is one area, but we look at the other ones, the established valuations of the companies, like Cloudera, like these big analytics ventures, the valuations Dave are very high. Jeff, when you look at the numbers, they're almost, you know, they're betting on the ranch. You got the big VCs betting against it. So if the M&A market doesn't develop between two to 700 million in terms of acquisition, then that's gonna be an opportunity for the ecosystem. So what I'm watching is startups, the valuations of these well-funded Series C, Series D financings, growth firms, quote, growth firms, they have to produce revenue. The value on that is, are they gonna produce the cash to support the valuations that get them on an IPO track or a big acquisition number? Right, I think, well, this is the year companies like Cloudera, they need to turn out the revenue machine. It needs to happen this year. Impressive what Alan has laid out in terms of messaging. I gotta give Cloudera major props on that. Very tight, very clean positioning and the messaging's great. Yeah, but again, when we're back here this time next year, those revenue numbers need to be, Cloudera's gotta hit 100 million this year. That's the goal. Okay, final word day, final sound by bumper sticker here, day two. My bumper sticker, it's all about the wallets. We've gone from geek to wallet. That's what happened in the big data world. Jeff? I'd say bumper sticker is open for business. To me, show me the money, justify the valuations and let's see the startups. I think it's gonna be still innovation, ton of growth, a lot of opportunity. That's a wrap from day two here at theCUBE. Big Data SV, that's our hashtag, hashtag Big Data SV. That's our event, Big Data NYC was a few months ago. We'll be back in New York in a few more short months. Big Data NYC, Big Data SV, innovation and silicon value. We'll be right back for day three tomorrow. Stay tuned and keep watching.