News Column

Austin-based software maker Gazzang acquired by California company

June 3, 2014

By Lori Hawkins, Austin American-Statesman



June 03--Austin-based encryption software developer Gazzang has been acquired by fast-growing California-based Cloudera.

Financial terms of the deal were not disclosed.

Gazzang was founded in Houston in 2008 and moved to Austin two years later after raising $3.5 million from Austin Ventures and private investors. The company has raised a total of $8 million in venture capital.

Gazzang's software secures data stored in remote data centers. It is aimed at companies that want to tap into the power of cloud computing but need highly secure systems to protect sensitive information.

Cloudera, founded in 2008 and based in Palo Alto, has raised a total of $900 million, including $740 million from Intel Corp. The company, which has 600 employees, plans to reach 800 by the end of the year.

Cloudera helps corporate customers manage data through Hadoop, an open-source software system that can sort and analyze massive amounts of information, known as Big Data, generated through the Internet and mobile devices.

Intel's investment values Cloudera, which is expected to go public later this year, at about $4.1 billion.

Gazzang's 41 employees will join Cloudera, and Gazzang's Austin headquarters will become the Cloudera Center for Security Excellence.

"It's a great fit," said Larry Warnock, Gazzang CEO. "We've been partners and have closed deals together. The timing in the market is right. The intent over time is to grow as Cloudera grows and make Austin a development hub."

Warnock will become Cloudera's vice president, security strategy.

Gazzang, which targets financial services, health care and public sector agencies, allows users to meet regulatory compliance initiatives, secure personally identifiable information and prevent unauthorized access to sensitive data and systems.

The deal, which is the first acquisition by Cloudera, was driven by the demand to incorporate security into Cloudera's offerings, said Cloudera CEO Tom Reilly.

"The top concern from our customers is to address their security concerns, and Gazzang is the number one leader and innovator in encryption and security for big data deployment," Reilly said. "Our teams have been working very closely in the field and this was just a natural merger for us."

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(c)2014 Austin American-Statesman, Texas

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Source: Austin American-Statesman (TX)


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