back to article Big data = big loss for Hadoop-flinger Hortonworks

If the future of big data is Hadoop, those peddling it still have a long journey ahead of the them. Newly IPO'd Hortonworks' inaugural results show a company whose losses are growing as its business expands. Further, it’s not subscriptions to Hortonworks’ implementation of the open-source Hadoop that are growing most – it is …

  1. Erik4872

    Big data hype cycle over?

    I guess this is the top of the hype cycle. It also explains why professional services are still growing. I imagine the following conversations are happening now:

    CEO: I want us to be ahead of the curve on this Big Data thing I read about in an airline magazine.

    CIO: But sir, we don't have the kind of customer data that would even be useful to analyze.

    CEO: Nonsense! I just hired Hortonworks to help better monetize our customer interactions with best of breed solutions that transcend outdated business models.

    So yeah, there's going to be a lot of professional services engagements, something resembling a Big Data analysis solution will be delivered, and it will be promptly relegated to the shelfware pile.

    1. 2+2=5 Silver badge

      Re: Big data hype cycle over?

      > CIO: But sir, we don't have the kind of customer data that would even be useful to analyze.

      My bank has precisely three different current accounts. Even though they have plenty of customer data regarding my transactions, no amount of data analysis is going to change that fact that they only have two more account types to try and upsell me on.

      1. FutureShock999

        Re: Big data hype cycle over?

        I do work in this field, as the Head of Big Data for a consultancy. Let me tell you about what your bank is doing (or will be doing) with that Big Data stack...

        1) they are looking at your detailed purchase history, and in all probability will eventually offer (if they do not already) a targeted third-party Groupon-type buying solution, driven by a detailed understanding of your buying history, demo/psycho-graphic data, and all other related credit information available about you. You will be asked to opt-in to this service, and if you do it very well may offer you good discounts on stuff you want. If you don't want it, opt-out...no big deal.

        2) They are using detailed examination of their own agent's behaviour to understand if the bank is at risk with the financial authorities for mis-selling products to customers. They are likely going to be monitoring agent's verbal conversations using machine learning, the contents of all web and email interactions using textual analysis, and even monitoring of live teller interactions. All of this will hopefully result in a better sales experience for the customer, and a reduction in bank fines from the authorities.

        3) They are converting their banks fraud detection from something that is usually done after the fact, into something that is done in real-time and can better prevent fraud before it happens. This will prevent fraud against your account, benefiting both you and the bank.

        These are three easy ones, and the tip of the iceberg...now, want to think about what they can REALLY do with Big Data solutions, even with "just three current account types?"

    2. Ian Michael Gumby
      Boffin

      Re: Big data hype cycle over?

      As someone in the know... no the hype cycle isn't over and your conversation makes no sense.

      2 years ago and even in the past year, your CIO has been saying that they want or need to experiment in the Big Data space.

      There's more to this and it is more of a question of what really is Hortonworks. Hint: Its a professional services company. That's where the revenue comes from and not the Hadoop licenses.

      And no, if done properly, its not shelfware.

  2. Anonymous Coward
    Anonymous Coward

    Unusual business model

    They lost $177M on revenues of $46M? So basically, their business model is to buy quarters for a dollar?

  3. Anonymous Coward
    Mushroom

    Lost $177 million on revenues of $46 million?

    *Ring, Ring*

    "Hello?"

    "Hi. 2001 calling. We want our tech bust back!"

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