Confluent goes IPO as Kafka event streaming goes mainstream

Confluent went public nowadays with an IPO on the NASDAQ inventory trade below the inventory symbol CFLT, with an original share price of $36.

Launched in 2014 and based mostly in Mountain See, Calif., Confluent experienced earlier elevated $456 million in funding to improve the firm’s occasion information streaming systems, which are based mostly on the open up supply Apache Kafka system.

Confluent’s co-founder and CEO, Jay Kreps, helped produce Kafka whilst he was a workers engineer at LinkedIn, in which he labored for seven a long time before starting up Confluent.

Top up to the IPO, Confluent more than the earlier year has added capabilities to its Confluent Cloud and Confluent System based mostly on Kafka — that enable a lot more scalability for occasion streaming.  

Confluent has also expanded past Kafka with its ksqlDB occasion steaming database that is purpose constructed for Kafka.

Confluent driving the going to occasion streaming information

The driving force behind Confluent is organizations’ escalating need for actual-time information, which is at the core of the vendor’s occasion streaming capabilities.

At the Kafka Summit Europe virtual conference on May 12 hosted by Confluent, significant brand users including automaker BMW Group, Porsche and Sony Playstation outlined how they profit from the occasion streaming technological know-how.

“Confluent carries on to be a sturdy participant in the change by enterprises to develop into a great deal a lot more occasion pushed, notably in supply chain and electronic functions,” said IDC analyst Maureen Fleming. “This is especially accurate in which enterprises are competing and monetizing speed and in which rapid and information-intensive assortment of information for AI is necessary.”

Confluent occasion streaming permits organizations to use information in motion

Fleming said she sees Confluent as the dominant vendor in the industry for steady assortment and delivery of information more than really distributed devices. It truly is an strategy that Confluent typically refers to as “data in motion.”

Fleming famous that Confluent’s sound economical overall performance reflects the rapid advances in the systems used to enable occasion-pushed functions.

In its S1 IPO filing with the U.S Securities and Trade Commission, Confluent documented that it experienced a lot more than two,500 shoppers and was achieving complete revenue expansion of 51 per cent year over  year for the first quarter of 2021.

The opportunity for an occasion-pushed architecture could perhaps be large, with Confluent estimating in the IPO filing that the complete addressable industry could be truly worth as a great deal as $50 billion.

“Around time as this variety of architecture turns into a lot more ingrained in how enterprises function, Confluent will go on to be a big beneficiary of this change,” Fleming said.

The Kafka relationship

David Menninger, an analyst at Ventana Study, said he was also optimistic about Confluent’s potential clients. The vendor’s association with the open up supply Apache Kafka system is a crucial driver of expansion for Confluent, he said.

Kafka is so extensively used for occasion streaming to the stage that Menninger named it ubiquitous. With that huge utilization, he famous that any business making use of the open up supply version of Kafka is a prospect for Confluent’s accredited item. 

“We see elementary variations transpiring in company information architectures,” Menninger said. “Knowledge in motion will change information at relaxation as the most important way in which organizations course of action information.”

Knowledge at relaxation is the classic strategy to accessing information in which it is first loaded into a database in which it “rests” and then is accessed. The information in motion strategy permits business to use information as it is going from an occasion supply.

“It’s not that information at relaxation goes away, but the first occasion of information in most organizations will be information in motion,” Menninger explained. “Then it will be stored to a database for historical and other non-actual time analyses. Confluent has positioned alone effectively to choose advantage of this trend.”