Dr Amr Awadallah is the Chief Technology Officer of #Cloudera, a data management and analytics platform based on #Apache #Hadoop. Before co-founding Cloudera in 2008, Awadallah served as Vice President of Product Intelligence Engineering at #Yahoo!, running one of the very first organizations to use Hadoop for data analysis and business intelligence. Awadallah joined Yahoo! after the company acquired his first startup, #VivaSmart, in July 2000. With the fourth industrial revolution upon us—where the lines between the physical, digital and biological spheres are blurred by the world of big data and the fusion of technologies—Cloudera finds itself among the band of companies that are leading this change. In this interview with Enterprise Innovation, the Cloudera co-founder shares his insights on the opportunities and challenges in the digital revolution and its implications for businesses today; how organizations can derive maximum value from their data while ensuring their protection against risks; potential pitfalls and mistakes companies make when using big data for business advantage; and what lies beyond big data analytics. Take us through the beginning of Cloudera, your time with VivaSmart, and what it was like to set up these companies. They were very different processes. When VivaSmart was acquired by Yahoo! in mid-2000 for $9 million, it was mainly an “acqui-hire” because there were only five of us in the company and we were one of the few experts in terms of compression, which Yahoo! really needed for its shopping service. In retrospect, it was the right thing to do because back in 2000 when the Internet bubble burst, almost all our competition shut down and we were lucky to join Yahoo! when we did. The lightbulb really went on for me in Yahoo!. I spent a total of eight years there—four were spent working on the compression shopping engine VivaSmart built, and four more on business intelligence and data analytics where I had a number of challenges in terms of scaling from a processing time perspective and a cost of storage perspective; we were deleting data we wanted to keep, and it was not advanced—it could only do SQL and we wanted to do predictive modeling, pattern matching, clustering, and other techniques that were very hard to do in SQL. I was lucky while I was at Yahoo! that Doug Cutting, who now also works at Cloudera, was working with the Yahoo Search team to build the Hadoop technology for Search. I was complaining about all the problems I had and he said to try Hadoop and see if it works for me. And it did! Within six months, all of my backend was switched to Hadoop, the processing time went down from nine hours to five minutes, the cost went down by almost 100x in some cases, and we gained the flexibility of being able to go beyond SQL and do more advanced stuff. You were one of the first guys working on Hadoop… We were the only Hadoop big data platform for two years. How did that business model evolve? That comes from Mike Olson, my co-founder and one of the very first open source CEOs. He had a company called Sleepy Cat, which was an in-memory database that was open source. He was very fundamental in charting the course of Cloudera in terms of how to create the business model around open source. We knew from day one that the benefits of open source are extremely rapid innovation and lots of word of mouth, but the downside is obviously that it’s very easy for someone to copy your products, and in many cases customers themselves take the software and don’t want to be customers. Mike experienced that firsthand with his first startup, so when we were building out Cloudera, we always had it in our strategy to do a hybrid open source business model. We’ll keep the core platform and capabilities open, but build value around it that would make it easier, make it enterprise-ready, and make it more about performance…that’s how we created the differentiation against competition. Cloudera is now a $4 billion company with 1,500 employees. How is your workforce spread out? Of the 1,500, a thousand are in the U.S. and the rest are worldwide. The 500 are mostly in sales and marketing in different countries—Singapore and ASEAN, Japan, China, Australia, and Europe… In Budapest, we have the only R&D and engineering office outside the United States. That came out of the fact that there’s a significant shortage of skills in the U.S. because the success of Silicon Valley companies like Google and Uber has led to competition becoming very cutthroat in terms of finding talent and retaining them. We made a strategic decision about two years ago that we would open an R&D office outside the U.S. and Budapest, Hungary was our choice. Eastern Europe is obviously very attractive for many reasons—a very educated skilled workforce, and the cost of that talent is probably half of some of other European nations. One of the unique things about Budapest is that compared to German, the U.K., France or Netherlands, it’s a third of the U.S. But the reason we moved was actually not to save money, but to find talent in the first place. H1B [visas] are very tough to get these days—and for a startup, which we still are, we have to be very agile. Why specifically Hungary over countries like Moldova, Romania, Macedonia, etc.? It came down to a number of things. First, the country needs to be politically stable, otherwise Ukraine was really on top of our list. Second, the talent we needed should be available. We look for a special type of talent, not just computer science developers, but talent that understands our systems—and this is the main determining factor why we picked Budapest. We did a survey of the market and found there are already a number of companies over there that were doing that, and we found that the local university was very advanced in terms of teaching that. Finally, there wasn’t already a big established presence from Google or Microsoft and other behemoths whom we didn’t want to start competing with right away. How do you see Asia fitting into the whole R&D system for Cloudera? Even though our size is relatively big, we’re still a startup. Right now, it’s not in our best interest to spread R&D out in too many locations because it slows down development. But as we grow as a company and start having more product lines, it would make sense to have more R&D offices in other locations and Asia will definitely be on top of the list. After having traveled around in Asia, how do you see the maturity of adoption compared to the West? I would say it’s very similar to Europe—it’s spotty, and at the same stage. By that I mean there are some companies that are just way cutting edge, way ahead of the curve, and there are some that are still playing catch up and learning what to do. In Europe, telecom and banking tend to be ahead of the curve, and what we’re seeing in Asia is that telecom is ahead of the curve. The banking industry here has not been as fast.
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