Case study: Cloudera

September 10, 2014
Global
Company profile: Cloudera is a Californian enterprise software company. Earlier this year, it completed a new financing round worth US$900m, attracting investment from Intel and T. Rowe Price, among others.

Executive: Tom Reilly, chief executive officer

Big decision: Finding a target company to acquire

Knowing that the company would soon be receiving fresh capital, Mr Reilly instigated a process to establish where the company could most benefit from an acquisition. For this, he turned to the customer data his company collects. Analysis revealed that data security and data privacy were the two standout concerns holding customers back from greater use of his company’s products.

This information formed the basis of a report presented to the board. Supporting data did not preclude the board from testing the decision, according to Mr Reilly, but it narrowed the focus of their questions and made them more direct. Six weeks later, the day after receiving the funds, and with everyone in agreement, the company completed the acquisition of Gazzang, a data-security company. The announcement was made knowing that it would be welcomed by customers.

 

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