Databricks, the analytics and AI giant, has made a significant move in the data management industry by acquiring Tabular for over $1 billion. Tabular, founded by Ryan Blue, Daniel Weeks, and Jason Reid in 2021, specializes in data management products built on Apache Iceberg. This open-source project, developed by Blue and Weeks during their time at Netflix, optimizes tables in databases for big data while enabling data engines to work with them efficiently.
One of the key aspects of this acquisition is the convergence of Databricks’ Delta Lake and Tabular’s Iceberg. These two formats have been competing in the data lakehouse market, which is gaining significant traction with about 74% of organizations adopting it, according to MIT Tech Review. By bringing both formats together, Databricks aims to establish a common standard and improve interoperability within its platform. This move will not only simplify the decision-making process for corporate clients but also showcase Databricks’ commitment to open formats and open-source data in the cloud.
The acquisition of Tabular aligns with Databricks’ strategy to strengthen its position as a leading player in the data management space. By unifying Tabular’s and Databricks’ customer bases and communities, the company aims to provide more value to its users. Ryan Blue emphasizes that their approach to the community will remain unchanged despite the acquisition, and they will continue to contribute to their new colleagues’ efforts.
Before the acquisition, Tabular had raised $37 million in venture capital from notable investors like Andreessen Horowitz, Zetta Venture Partners, and Altimeter Capital. The deal is expected to close in Q2 2024, subject to customary closing conditions.
Overall, this acquisition marks an important milestone for Databricks as it expands its capabilities in data management and reinforces its commitment to open formats and collaboration with the data lakehouse communities. The integration of Tabular’s expertise and products into Databricks’ platform will undoubtedly enhance the value proposition for corporate clients and further solidify Databricks’ position as a leader in the industry.
