Altiscale Lands $30M To Continue Building Hadoop Cloud Service

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When you think of Hadoop, you probably think of a complex on-premises set up in your data center, but Altiscale wants to reduce some of that complexity by moving the whole thing to the cloud and offering Hadoop as a service. Today it got $30M in Series B funding to continue that quest.

The round is led by Northgate, with participation from previous investors Sequoia Capital and General Catalyst Partners. Today’s funding brings Altiscale’s total raised to $42M.

Hadoop is an open source project designed to help companies process big data.

The company also announced it brought Mike Maciag on board to be its Chief Operating officer. Maciag is a seasoned industry veteran with experience at five startups before joining AltiScale. He indicated two had gone public, two were sold and one was still operating.

Maciag, who has seen this process before, says what attracted him to Altiscale was that they have the pieces in place to succeed. As he explained, the company has created the product and proven it works at scale. Now, they need more money to bring that to the next level and take it to a broader market.

And presumably, it shows investor confidence in the idea. The first $12M got them to this point, but they needed a significant investment to build out an organization to find and support more clients.

What makes Altiscale unusual among Hadoop vendors, is that it was born in the cloud with the express purpose of processing Hadoop workloads. As company founder and CEO Raymie Stata told me, running Hadoop is not a simple matter and it’s still a bit rough around the edges. He got his start at Yahoo! which has a huge organization supporting its Hadoop efforts, but most companies trying to work with Hadoop don’t have that luxury.

He says that’s one of the main reasons he created Altiscale. By putting the service in the cloud, it brings Hadoop to a much wider audience and customers can lean on his company when they hit those inevitable issues. Sometimes the company picks them up in the processing stage and sometimes it’s in the form of a help ticket from the customer, but instead of being forced to track down the problem themselves, customers can leave it to Altiscale to do that.

And he says, that process of solving the problem can be reduced from days to hours because his company is entirely focused on Hadoop. Whereas for most IT departments it’s just another problem among many to track down.

It’s worth noting that Hadoop has been a hot commodity lately.  Just recently Hortworks, another Hadoop vendor announced it was going public by filing an S-1. Last March Cloudera announced a valuation of more than $4B.

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