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Thanks to IBM, a hot startup called Databricks is poised to dominate a vital new market

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Databricks Matei Zaharia
Databricks co-founder CTO Matei Zaharia  Databricks co-founder CTO Matei Zaharia

On Monday, IBM announced it will invest about $300 million over the next few years and assign 3,500 people to help develop an up-and-coming technology known as Spark.

IBM called Spark "the most significant open source project of the next decade."

This was very good news for a two-year-old startup called Databricks, founded by the people that invented Spark, and who, today, officially launched their commercial version of Spark.

Spark is a free and open source software program managed by the organization that runs many open source projects, the Apache Foundation.

In the past year or so, it has become a phenom in the world of big data computing, where companies collect huge amounts of information, store it on low-cost commodity computers, and use a variety of free software to work with the data.

Spark has gained attention because it crunches through vast amounts of data super-fast. It won a contest in 2014 known the Gray Sort Benchmark, which measures how fast a system can sort 100 TB of data, or 1 trillion records  — Spark took 23 minutes, smashing the previous record of 72 minutes. It is also popular because Spark can be used with other big-data technologies, especially the popular method of storing lots of data, Hadoop.

Spark basically replaces an older method of working with data stored in Hadoop invented by Google, known as MapReduce.  Spark is not the only free and open source project that replaces MapReduce. Apache Storm is another.

IBM Beth Smith
General Manager of Analytics Platform at IBM Beth Smith leads the investment into Spark  Beth Smith

But, as IBM's huge commitment on Monday shows, Spark is becoming the rising star in this world. That's because it crunches through data almost the instant that data is collected. And it makes it easy for developers to write apps that take advantage of real-time big data analysis.

Why IBM is jumping in with both feet

Spark was started in 2009 by Matei Zaharia, now CTO of Databricks, as part of his PhD and developed as part of the UC Berkeley's AMPLab. Databricks' CEO is Ion Stoica, a UC Berkeley professor and co-director of AMPLab.

AMPLab is a research center for computer algorithms and machine learning. IBM is one of the four founding members of AMPLab, although a long  list of other big names in computer science contribute to the lab, too. (The other founders are Amazon Web Services, Google, and SAP).

Interestingly, Spark won its famous speed contest by using Amazon Web Services, IBM's nemesis cloud competitor. And, on Monday, Databricks announced that its commercial version of Spark was officially open for business, also on Amazon's cloud.

Clearly, IBM is not willing to let AWS run away with Spark.

On the contrary: IBM will be offering Spark on its cloud service IBM Bluemix. It will also be baking Spark into its IBM's Watson Health Cloud and developing a special machine-learning version of Spark known as IBM SystemML. IBM will release SystemML as a free-and-open language, too, working with Databricks to do so.

On top of that, IBM says it will train more than a million data scientists and data engineers on Spark through extensive partnerships with AMPLab and other online education outlets. And IBM will open a Spark Technology Center in San Francisco to support Spark/machine learning projects.

While IBM's full-throttle commitment to Spark is enormous, it's not the only big company doing this type of thing. In February, Intel announced a partnership with Databricks to get Spark to work better on machines that run on Intel processors.

Besides winning a contest, Spark has already been adopted by some big names including Airbnb, eBay, Groupon, MyFitnessPal, OpenTable, Pinterest, Independence Blue Cross of Philadelphia, and NASA, and the SETI Institute, to name a few.

Since the free version of the project first launched in 2009, more than 400 developers have contributed to Spark, and this week, the Spark community is holding a conference in San Francisco expected to attract 2,000 people, nearly double the number from last year.

All of this has helped Databricks land an all-star line-up of backers and board members. It raised $47 million in two rounds led by Andreessen Horowitz (Ben Horowitz), with participation from New Enterprise Associates.

Its board also includes UC Berkeley professor Scott Shenker, known as the co-founder and former CEO of Nicira, which sold for $1.26 billion to VMware in 2012.

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Julie Bort was Business Insider's Editor at Large for the Tech team. She loves investigating stories and shedding light on the tech industry's most amazing people.Here's a small sample of some of Julie's work.Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul'Sex, tequila, and a tiger: Employees inside Adam Neumann's WeWork talk about the nonstop party to attain a $100 billion dream and the messy reality that tanked itInsiders say WeWork's IT is a patchwork of cheap devices and Band-Aid fixes that will take millions to fixWeWork's toxic phone booths were created in-house by its Powered by We business70-hour weeks and 'WTF' emails: 42 employees reveal the frenzy of working at Tesla under the 'cult' of Elon MuskElon Musk works so many hours at Tesla, employees are constantly finding him asleep under tables and desksHow this woman went from a Pizza Hut employee to a founder of a $4 billion startupAn Oracle insider explains how some salespeople gamed the system to sell more cloudTHE TAKEDOWN OF TRAVIS KALANICK: The untold story of Uber's infighting, backstabbing, and multimillion-dollar exit packagesMicrosoft is in talks to buy GitHub, a startup at the center of the software world last valued at $2 billionThe alarming inside story of a failed Google acquisition, and an employee who was hospitalizedInside Facebook's plan to eat another $350 billion IT marketHow a registered sex offender wound up living in an Airbnb hosting unsuspecting guestsA controversial ex-banker is the person who really runs Twitter — and he's gambling the company's future on one risky betSecret passages and skipped meals: Oracle's CEO gave us a rare peek at what it really takes to run a $37 billion companyHP told some employees to choose between becoming contractors with no benefits or being fired without severance'I felt like we were being extorted': Customer says Oracle tried to strong-arm him into a cloud saleHow the queen of Silicon Valley is helping Google go after Amazon's most profitable businessAirbnb host: A guest is squatting in my condo and I can't get him to leaveLIES, BOOZE, AND BILLIONS: How one of the fastest-growing startups in Silicon Valley history raised $580 million then spiraled out of controlGitHub is undergoing a full-blown overhaul as execs and employees depart — and we have the full inside storyWhen she's not writing for Business Insider, Julie can usually be found on the trails, on my mountain bike, or on my skis, if you know where to look.