Intel's Stock Climbs Following $740 Million Investment in Cloudera

Paul Lilly

Intel and investors align in vision of the future

Investors can be a funny, unpredictable bunch. Sometimes they overreact to small blips in sales estimates -- Apple investors seem to do this every time the company issues a financial report -- and other times they get excited over seemingly nothing. The good news for Intel is that investors are reacting positively to a massive investment in Cloudera , an enterprise data hub powered by Apache Hadoop.

Intel and Cloudera announced last week a broad strategic technology and business collaboration, as well as a "significant equity investment" from the former into the latter. The Santa Clara chip maker initially kept mum about how much it invested, though today revealed that it equated to around $740 million for an 18 percent stake, which values Cloudera at $4.1 billion.

"By aligning the Cloudera and Intel roadmaps, we are creating the platform of choice for big data analytics," said Diane Bryant, senior vice president and general manager of Intel's Data Center Group. "We expect to accelerate industry adoption of the Hadoop data platform and enable companies to mine their data for insights that inform the business. This collaboration spans our data center technology from compute to network, security and storage, and extends to our initiatives for the Internet of Things."

After Intel revealed how much it invested in Cloudera, its stock began to rise, going up 1.1 percent to $25.91 on Monday. While it's early, investors are clearly excited about the move, or at least optimistic. With this deal in place, Intel will move away from its own version of Hadoop and rely on Cloudera to promote Big Data analysis, which itself could lead to more sales of Xeon server chips.

Image Credit: Flickr (IntelFreePress)

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