Jan
23
2019
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Open-source leader Confluent raises $125M on $2.5B valuation

Confluent, the commercial company built on top of the open-source Apache Kafka project, announced a $125 million Series D round this morning on an enormous $2.5 billion valuation.

The round was led by existing investor Sequoia Capital, with participation from Index Ventures and Benchmark, which also participated in previous rounds. Today’s investment brings the total raised to $206 million, according to the company.

The valuation soared from the previous round when the company was valued at $500 million. What’s more, the company’s bookings have scaled along with the valuation.

Graph: Confluent

 

While CEO Jay Kreps wouldn’t comment directly on a future IPO, he hinted that it is something the company is looking to do at some point. “With our growth and momentum so far, and with the latest funding, we are in a very good position to and have a desire to build a strong, independent company,” Kreps told TechCrunch.

Confluent and Kafka have developed a streaming data technology that processes massive amounts of information in real time, something that comes in handy in today’s data-intensive environment. The base streaming database technology was developed at LinkedIn as a means of moving massive amounts of messages. The company decided to open-source that technology in 2011, and Confluent launched as the commercial arm in 2014.

Kreps, writing in a company blog post announcing the funding, said that the events concept encompasses the basic building blocks of businesses. “These events are the orders, sales and customer experiences, that constitute the operation of the business. Databases have long helped to store the current state of the world, but we think this is only half of the story. What is missing are the continually flowing stream of events that represents everything happening in a company, and that can act as the lifeblood of its operation,” he wrote.

Kreps pointed out that as an open-source project, Confluent depends on the community. “This is not something we’re doing alone. Apache Kafka has a massive community of contributors of which we’re just one part,” he wrote.

While the base open-source component remains available for free download, it doesn’t include the additional tooling the company has built to make it easier for enterprises to use Kafka. Recent additions include a managed cloud version of the product and a marketplace, Confluent Hub, for sharing extensions to the platform.

As we watch the company’s valuation soar, it does so against a backdrop of other companies based on open source selling for big bucks in 2018, including IBM buying Red Hat for $34 billion in October and Salesforce acquiring MuleSoft in June for $6.5 billion.

The company’s most recent round was $50 million in March, 2017.

Nov
29
2018
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AWS launches a managed Kafka service

Kafka is an open-source tool for handling incoming streams of data. Like virtually all powerful tools, it’s somewhat hard to set up and manage. Today, Amazon’s AWS is making this all a bit easier for its users with the launch of Amazon Managed Streaming for Kafka. That’s a mouthful, but it’s essentially Kafka as a fully managed, highly available service on AWS. It’s now available on AWS as a public preview.

As AWS CTO Werner Vogels noted in his AWS re:Invent keynote, Kafka users traditionally had to do a lot of heavy lifting to set up a cluster on AWS and to ensure that it could scale and handle failures. “It’s a nightmare having to restart all the cluster and the main nodes,” he said. “This is what I would call the traditional heavy lifting that AWS is really good at solving for you.”

It’s interesting to see AWS launch this service, given that it already offers a very similar tool in Kinesis, a tool that also focuses on ingesting streaming data. There are plenty of applications on the market today that already use Kafka, and AWS is clearly interested in giving those users a pathway to either move to a managed Kafka service or to AWS in general.

As with all things AWS, the pricing is a bit complicated, but a basic Kafka instance will start at $0.21 per hour. You’re not likely to just use one instance, so for a somewhat useful setup with three brokers and a good amount of storage and some other fees, you’ll quickly pay well over $500 per month.

more AWS re:Invent 2018 coverage

Mar
07
2017
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Confluent raises $50M to continue growing commercial arm of Apache Kafka

data streams Confluent, the commercial company built on top of the open source Apache Kafka streaming database project, announced today that it has closed a $50 million investment.
The round was led by Sequoia with Benchmark and Index Ventures also participating. Sequoia’s Matt Miller will be joining the Confluent board as part of the deal. Today’s round brings the total investment into the… Read More

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