20 Feb 2019 | Announcement

Our Perspective on Google's Acquisition of Alooma and Talend's Acquisition of Stitch

George Fraser
George Fraser
Taylor Brown
Taylor Brown
Our Perspective on Google's Acquisition of Alooma and Talend's Acquisition of Stitch
A note from Fivetran co-founders George Fraser and Taylor Brown on recent consolidation in the data pipeline space.

On Tuesday, February 19th, 2019, Google Cloud announced its intent to purchase data pipeline provider Alooma. Alooma has been a fierce competitor to Fivetran over the last few years, and we especially respect their database connectors and the company's sales team.

This is the second data infrastructure company to be acquired in the last few months, the other being Stitch Data, which was acquired by Talend.

What do these acquisitions mean for the future of our industry?

Google gave the following statement to TechCrunch about the future of the Alooma product:

"After close, the [Alooma] team will be joining us in our Tel Aviv and Sunnyvale offices, and we will be leveraging the Alooma technology and team to provide our Google Cloud customers with a great data migration service in the future.

Regarding supporting competitors, yes, the existing Alooma product will continue to support other cloud providers. We will only be accepting new customers that are migrating data to Google Cloud Platform, but existing customers will continue to have access to other cloud providers."

Existing customers who are using Alooma with non-Google destinations like Snowflake and Redshift will most likely be looking for a new solution in the next year.

Meanwhile, Talend has explicitly positioned Stitch as an entry-level solution for small companies:

talend-investor-slide

Talend Investor Presentation, November 2018

We fundamentally believe that companies small and large should be using ELT, and that graduating Stitch’s customers to a more archaic ETL approach at Talend is not the right progression.

Since launching in 2015, Fivetran has been unwavering in our dedication to building the best data pipeline for companies large and small. And our customers are finding success, whether it’s companies like Label Insight, a customer we share with our partners at Google, who rely on seamless access to data, or Outsystems, who finds that Fivetran fully managed ELT pipelines paired with a powerful Snowflake data warehouse allow them to focus on insights rather than data integrity problems.

We believe that companies, no matter how complex their use case, will benefit from automations in their data pipelines and a cloud-first ELT (extract, load, transform) approach, and we think that “graduating” customers to an unmanaged ETL (extract, transform, load) method takes several steps backward.

alooma-chart

Our offer to Alooma users

For Alooma customers who need to switch to a new solution, we'd like to make your decision easy: Use Fivetran for free for the remainder of your contract (up to six months). This will give you time to migrate your workflows without incurring extra cost. Please contact us to discuss further.

2019 is going to be a big year for Fivetran. Our team is now over 100 people, and we're laser-focused on providing high-quality data infrastructure that manages itself. Come join us!

George Fraser

Taylor Brown

Co-founders, Fivetran

About Fivetran

  • We recently raised $15m from Matrix Partners.
  • We have the broadest array of sources of any fully managed data pipeline.
  • Fivetran is cloud-agnostic: We work with Microsoft Azure, Amazon, Snowflake and Google Cloud.
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