Technavio is set to publish a new industry analysis report report on the global Hadoop market, which is expected to grow at a CAGR of 53.1% from 2014-2019, to reach a value of $27.84 billion in 2019.
Hadoop versus relational database management systems (RDBMS)
RDBMS is based on the relational database model, which stores information in tabular form. It’s the top choice for information storing in sectors like financial services, manufacturing, personnel management, and logistics. The demand for the RDBMS is growing, but it has some limitations regarding performance and scalability.
Hadoop, on the other hand, is an open source framework. It is very scalable and can store a large amount of structured and unstructured data across multiple systems.
Hadoop vs RDBMS
Source: Technavio, 2015
Hadoop market by deployment type
On-premises solutions currently account for nearly 80% of the market share, but the balance between on-premises and Hadoop-as-a-service (HDaaS) is expected to even out over the forecast period, thanks to increased investment in HDaaS.
Source: Technavio, 2015
Over the past few years, there’s been an injection of more than $250 million in venture capital investment in the Hadoop market, with much of this going towards the development of HDaaS solutions.
Cloudera, for instance, raised $65 million in December 2012 from Accel Partners with participation from Greylock Partners, Ignition Partners, In-Q-Tel, and Meditech Capital Partners.
MapR Technologies, another massive market vendor, has raised $20 million through similar avenues. Their investors include Redpoint Ventures, Lightspeed Venture Partners, and New Enterprise Associates.
Unfamiliarity with Hadoop technology is the souce of some growing pains for the market
There has been a divide between the attention that Hadoop has generated and adoption of the technology among enterprises. This comes down to lack of awareness and understanding of Hadoop technology among IT professionals.
A recent blog post from the Wall Street Journal says that “every business person with an interest in data should understand Hadoop, regardless of whether it is part of their data strategy or not”.
But according to Technavio, the absence of skilled professionals is slowing down proper implementation and maintenance of the Hadoop framework.
But every cloud (service) has a silver lining, and the lack of awareness about Hadoop has provided a huge opening for investment in Hadoop technology. Offerings from vendors like Amazon Web Services, Cisco Systems, Cloudera, Datameer, and Hortonworks are expected to spur growth in the global Hadoop market over the projected period.
