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Intel (INTC) Abandoning Hadoop distro is Positive Development - Cowen

March 28, 2014 6:55 AM EDT Send to a Friend
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Cowen and Company keeps Intel (Nasdaq: INTC) at Market Perform with a price target of $23.50 following news that the company would abandon Hadoop distro and will refocus resources on its open-source Apache project.

Analyst Timothy Arcuri commented, We view this as a positive development for [three] major reasons:
  1. partnership with the market leader should decrease confusion in the market and help accelerate/broaden the applicability/adoption of Hadoop, in turn allowing INTC to sell more computers and grow a data center TAM where its share is already >90%;

  2. while it is a public about-face, it speaks to a growing willingness by mgmt to embrace change and dramatically pivot where necessary; and

  3. while the INTC/ARM battle is far from over, Cloudera has been a high profile early developer of software for ARM-based Hadoop clusters and coming on the heels of the Calxeda announcement and INTC's pending migration of Xeon/Atom to the new Broadwell/Denvertron (14nm) core ramp, would seem to support a healthy dose of skepticism around ARM's ability to gain share for real computational workload.
For an analyst ratings summary and ratings history on Intel click here. For more ratings news on Intel click here.

Intel closed at $25.31 yesterday.




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