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Confluent Acquires WarpStream to Advance Next-Gen BYOC Data Streaming

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Confluent (NASDAQ:CFLT) has acquired WarpStream, an Apache Kafka-compatible data streaming platform, to enhance its Bring Your Own Cloud (BYOC) offerings. This acquisition allows Confluent to provide data streaming solutions for all customer needs, including fully managed (Confluent Cloud), self-managed (Confluent Platform), and now BYOC with WarpStream.

WarpStream's BYOC architecture is designed for organizations with large-scale workloads and relaxed latency requirements, ideal for logging, observability, and feeding data lakes. The acquisition aligns with Confluent's mission to build a data streaming platform for everyone, regardless of configurations and workloads.

WarpStream's approach, built directly on object storage like Confluent's Kora engine, brings managed data streaming benefits into the customer's cloud. Confluent plans to add features such as processing and governance to WarpStream BYOC in the future.

Confluent (NASDAQ:CFLT) ha acquisito WarpStream, una piattaforma di streaming di dati compatibile con Apache Kafka, per migliorare le proprie offerte di Bring Your Own Cloud (BYOC). Questa acquisizione consente a Confluent di fornire soluzioni di streaming di dati per tutte le esigenze dei clienti, inclusi i servizi completamente gestiti (Confluent Cloud), quelli autogestiti (Confluent Platform) e ora il BYOC con WarpStream.

L'architettura BYOC di WarpStream è progettata per organizzazioni con carichi di lavoro su larga scala e requisiti di latenza flessibili, ideale per logging, osservabilità e alimentazione di data lake. L'acquisizione è in linea con la missione di Confluent di costruire una piattaforma di streaming di dati per tutti, indipendentemente dalle configurazioni e dai carichi di lavoro.

Il metodo di WarpStream, costruito direttamente su storage a oggetti come il motore Kora di Confluent, porta i vantaggi dello streaming di dati gestito nel cloud del cliente. Confluent prevede di aggiungere funzionalità come l'elaborazione e la governance a WarpStream BYOC in futuro.

Confluent (NASDAQ:CFLT) ha adquirido WarpStream, una plataforma de transmisión de datos compatible con Apache Kafka, para mejorar su oferta de Bring Your Own Cloud (BYOC). Esta adquisición permite a Confluent proporcionar soluciones de transmisión de datos para todas las necesidades del cliente, incluidos los servicios completamente gestionados (Confluent Cloud), autogestionados (Confluent Platform) y ahora el BYOC con WarpStream.

La arquitectura BYOC de WarpStream está diseñada para organizaciones con cargas de trabajo a gran escala y requisitos de latencia relajados, ideal para registro, observabilidad y alimentación de lagos de datos. La adquisición está alineada con la misión de Confluent de construir una plataforma de transmisión de datos para todos, independientemente de las configuraciones y las cargas de trabajo.

El enfoque de WarpStream, construido directamente sobre almacenamiento de objetos como el motor Kora de Confluent, lleva los beneficios de la transmisión de datos gestionados a la nube del cliente. Confluent planea agregar funciones como procesamiento y gobernanza a WarpStream BYOC en el futuro.

Confluent (NASDAQ:CFLT)는 Apache Kafka와 호환되는 데이터 스트리밍 플랫폼인 WarpStream을 인수하여 Bring Your Own Cloud (BYOC) 서비스를 강화했습니다. 이번 인수를 통해 Confluent는 전적으로 관리되는 서비스(Confluent Cloud), 자가 관리형 서비스(Confluent Platform), 그리고 이제 WarpStream과 함께하는 BYOC 등 모든 고객의 데이터 스트리밍 솔루션을 제공합니다.

WarpStream의 BYOC 아키텍처는 대규모 작업 부하와 느슨한 지연 요구 사항을 가진 조직을 위해 설계되어, 로깅, 가시성 및 데이터 레이크를 위한 데이터 공급에 이상적입니다. 이번 인수는 구성이든 작업 부하든 관계없이 모두를 위한 데이터 스트리밍 플랫폼을 만들겠다는 Confluent의 미션과 일치합니다.

WarpStream의 접근법은 Confluent의 Kora 엔진과 같은 객체 저장소 위에 직접 구축되어, 고객의 클라우드로 관리되는 데이터 스트리밍 혜택을 제공합니다. Confluent는 향후 WarpStream BYOC에 처리 및 거버넌스와 같은 기능을 추가할 계획입니다.

Confluent (NASDAQ:CFLT) a acquis WarpStream, une plateforme de streaming de données compatible avec Apache Kafka, pour améliorer ses offres Bring Your Own Cloud (BYOC). Cette acquisition permet à Confluent de fournir des solutions de streaming de données répondant à tous les besoins des clients, y compris des services entièrement gérés (Confluent Cloud), autogérés (Confluent Platform) et maintenant BYOC avec WarpStream.

L'architecture BYOC de WarpStream est conçue pour des organisations ayant de grandes charges de travail et des exigences de latence assouplies, idéale pour le logging, l'observabilité et l'alimentation des lacs de données. Cette acquisition s'inscrit dans la mission de Confluent de construire une plateforme de streaming de données pour tous, quelles que soient les configurations et les charges de travail.

L'approche de WarpStream, construite directement sur le stockage d'objets comme le moteur Kora de Confluent, apporte les avantages du streaming de données géré dans le cloud du client. Confluent prévoit d'ajouter des fonctionnalités telles que le traitement et la gouvernance à WarpStream BYOC à l'avenir.

Confluent (NASDAQ:CFLT) hat WarpStream übernommen, eine mit Apache Kafka kompatible Daten-Streaming-Plattform, um seine Bring Your Own Cloud (BYOC)-Angebote zu verbessern. Diese Übernahme ermöglicht es Confluent, Daten-Streaming-Lösungen für alle Kundenbedürfnisse anzubieten, einschließlich vollständig verwalteter (Confluent Cloud), selbstverwalteter (Confluent Platform) und jetzt BYOC mit WarpStream.

Die BYOC-Architektur von WarpStream ist für Organisationen mit großen Arbeitslasten und flexiblen Latenzanforderungen konzipiert und eignet sich ideal für Logging, Beobachtbarkeit und die Fütterung von Data Lakes. Die Übernahme entspricht der Mission von Confluent, eine Daten-Streaming-Plattform für alle zu schaffen, unabhängig von Konfigurationen und Arbeitslasten.

Der Ansatz von WarpStream, der direkt auf Objektspeicher wie der Kora-Engine von Confluent basiert, bringt die Vorteile des verwalteten Datenstreamings in die Cloud des Kunden. Confluent plant, in Zukunft Funktionen wie Verarbeitung und Governance zu WarpStream BYOC hinzuzufügen.

Positive
  • Acquisition expands Confluent's product portfolio to include BYOC offerings
  • WarpStream's technology caters to large-scale workloads with relaxed latency requirements
  • Potential for future feature additions to WarpStream BYOC, including processing and governance
  • Aligns with market demand, as 91% of IT leaders rely on data streaming platforms for organizational data goals
Negative
  • Acquisition not expected to have a material impact on Confluent's financial results for the remainder of 2024

Insights

Confluent's acquisition of WarpStream is a strategic move to expand its product portfolio and address a broader market. This BYOC (Bring Your Own Cloud) offering fills a gap between fully managed and self-managed solutions, potentially increasing Confluent's total addressable market.

While the financial impact is stated as not material for 2024, this acquisition could drive long-term growth by catering to customers with specific regulatory or contractual requirements. The move aligns with the high demand for data streaming platforms, as indicated by the 91% of IT leaders relying on such solutions.

Investors should note that this expansion could lead to increased market share and customer retention, potentially boosting Confluent's competitive position in the data streaming space.

Confluent's acquisition of WarpStream represents a significant technological advancement in the data streaming landscape. The BYOC architecture, built on object storage like Confluent's Kora engine, offers a novel approach to separating compute and storage in the data streaming layer.

This innovation could reduce operational complexity for large-scale workloads with relaxed latency requirements, such as logging and observability. The planned addition of processing and governance features to WarpStream BYOC signals Confluent's commitment to providing a comprehensive data streaming solution.

From a technical standpoint, this acquisition positions Confluent to address diverse customer needs across the spectrum of data streaming deployments, potentially accelerating adoption and innovation in the field.

The acquisition of WarpStream aligns with the growing trend of flexible cloud solutions in the data management space. By offering a BYOC option, Confluent is tapping into a market segment that demands greater control over their data infrastructure while still benefiting from managed services.

This move could appeal to enterprises in highly regulated industries or those with specific data sovereignty requirements. The expansion of Confluent's product range to include fully managed, self-managed and now BYOC options positions the company as a versatile provider capable of meeting diverse customer needs.

From a market perspective, this acquisition could strengthen Confluent's competitive edge and potentially lead to increased market penetration, especially in sectors where data control and compliance are paramount.

Confluent now enables customers to get real-time data however and wherever they need iton prem, in the cloud or BYOC

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- Confluent, Inc. (NASDAQ:CFLT), the data streaming pioneer, today announced it has acquired WarpStream, an Apache Kafka®-compatible data streaming platform. WarpStream’s Bring Your Own Cloud (“BYOC”) data streaming architecture is designed for organizations running large scale workloads with relaxed latency requirements in their own cloud environment, perfect for logging, observability, and feeding data lakes. With the acquisition of WarpStream, Confluent now has a data streaming offering for every company no matter the need—whether that’s fully managed with Confluent Cloud, self-managed with Confluent Platform, or BYOC with WarpStream.

A third offering for data streaming deployment

Many organizations find that unlocking the full value of data needed for today’s most important business use cases is much harder than it should be, due to the fractured and siloed nature of the data estate. According to Confluent’s latest data streaming report, 91% of IT leaders are banking on data streaming platforms to drive their organization’s data goals forward. Confluent’s mission is to build a data streaming platform for everyone so they can set their data in motion, regardless of their configurations and workloads.

Currently, Confluent achieves that with Confluent Cloud, its fully managed service, and Confluent Platform, its self-managed offering. Both are complete data streaming platforms that stream, connect, process and govern data, but they sit at opposite ends of the spectrum of operational burden and flexibility. Confluent Cloud eliminates the operational burden with the trade-off of control. Confluent Platform provides greater flexibility at the cost of a higher operational burden. The choice between the two depends on the specific needs and capabilities of an organization.

BYOC has emerged as a third option that falls in between fully managed and self-managed data streaming. BYOC uses a shared responsibility framework where the customer and the vendor are jointly responsible for the operations and health of the system. This joint responsibility gives customers more deployment flexibility, albeit at the cost of some operational overhead. This model benefits instances when regulatory or contractual barriers prevent a customer from using a fully managed solution. WarpStream’s next-gen BYOC brings a cloud offering to Confluent’s product portfolio for these customers who have high scale workloads with relaxed latency requirements such as logging, observability, and feeding data lakes.

“Confluent wants to offer data streaming to all customers with all requirements and workloads,” said Jay Kreps, co-founder and CEO, Confluent. “I've been deeply impressed with WarpStream—it’s BYOC done right. With this acquisition, we have a data streaming offering for everyone.”

A novel approach to BYOC

WarpStream co-founders Richard Artoul and Ryan Worl realized that if they could separate compute and storage to reduce the operational burden at the database layer, the same could also be done for the data streaming layer. WarpStream’s BYOC approach is built directly on object storage, just like Confluent’s Kora engine, and brings managed data streaming benefits into the customer’s cloud.

Under Confluent’s product umbrella, WarpStream will continue its mission to deliver customers a seamless BYOC experience while pushing forward an ambitious roadmap. In time, features like processing and governance will be added to WarpStream BYOC to provide a complete data streaming platform solution for high-volume logging and observability workloads.

“We’re excited that the leader in the data streaming space has acquired WarpStream to offer next-gen BYOC to customers,” said Richard Artoul, co-founder and CEO, WarpStream. “Together with Confluent, we will continue to ensure that Kafka-compatible data streaming is accessible to every organization.”

Confluent does not expect the acquisition to have a material impact on its financial results for the remainder of 2024.

To learn more about how Confluent and WarpStream are delivering value to customers, register to attend Current 2024, taking place in Austin from September 17-18: https://current.confluent.io/

Additional Resources

Cooley LLP acted as legal advisor to Confluent and Wilson Sonsini Goodrich & Rosati, P.C. acted as legal advisor to WarpStream.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding Confluent’s data streaming technology, the expected timing of and benefits from Confluent’s acquisition of WarpStream, the expected impacts to Confluent’s financial results (including timing of such impacts), the timing for launching new product offerings, capabilities and accessibility of new product offerings, the expected benefits and necessity of data streaming, performance of new product offerings compared to open source alternatives, and expected benefits of product offerings for Confluent’s customers. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “plan,” “project,” “target,” “look to,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements represent Confluent’s current beliefs, estimates and assumptions only as of the date of this press release, and information contained in this press release should not be relied upon as representing Confluent’s estimates as of any subsequent date. These forward-looking statements are subject to risks, uncertainties, and assumptions. If the risks materialize or assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. Risks include, but are not limited to: (i) Confluent’s limited operating history, including in uncertain macroeconomic environments, (ii) Confluent’s ability to consummate the WarpStream acquisition and to integrate WarpStream following the acquisition; (iii) Confluent’s ability to sustain and manage its rapid growth, (iv) Confluent’s ability to attract new customers and retain and sell additional features and services to existing customers, (v) inflationary conditions, economic uncertainty, recessionary risks, and exchange rate fluctuations, which may result in customer pullback in information technology spending, lengthening of sales cycles, reduced contract sizes, reduced consumption of Confluent Cloud or customer preference for open source alternatives, (vi) Confluent’s ability to increase consumption of its offering, including by existing customers and through the acquisition of new customers, and successfully add new features and functionality to its offering, (vii) Confluent’s ability to achieve or sustain profitability and improve margins annually or at all, (viii) the estimated addressable market opportunity for Confluent’s offering, (ix) Confluent’s ability to compete effectively in an increasingly competitive market, including achieving market acceptance over competitors and open source alternatives, (x) Confluent’s ability to successfully execute its go-to-market strategy and initiatives, (xi) Confluent’s ability to attract and retain highly qualified personnel, (xii) breaches in Confluent’s security measures or unauthorized access to its platform, data, or customers’ or other users’ personal data, (xiii) Confluent’s reliance on third-party cloud-based infrastructure to host Confluent Cloud, and (xiv) general market, political, economic, and business conditions. These risks are not exhaustive. Further information on these and other risks that could affect Confluent’s results is included in its filings with the Securities and Exchange Commission (“SEC”), including Confluent’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, and its future reports that it may file from time to time with the SEC. Confluent assumes no obligation to, and does not currently intend to, update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About Confluent

Confluent is the data streaming platform that is pioneering a fundamentally new category of data infrastructure that sets data in motion. Confluent’s cloud-native offering is the foundational platform for data in motion – designed to be the intelligent connective tissue enabling real-time data, from multiple sources, to constantly stream across the organization. With Confluent, organizations can meet the new business imperative of delivering rich, digital front-end customer experiences and transitioning to sophisticated, real-time, software-driven backend operations.

Confluent® and associated marks are trademarks or registered trademarks of Confluent, Inc.

Apache® and Apache Kafka® are either registered trademarks or trademarks of the Apache Software Foundation in the United States and/or other countries. No endorsement by the Apache Software Foundation is implied by the use of these marks. All other trademarks are the property of their respective owners.

Kerry Tuttle

pr@confluent.io

Source: Confluent, Inc.

FAQ

What is the purpose of Confluent's acquisition of WarpStream?

Confluent acquired WarpStream to expand its data streaming offerings to include a Bring Your Own Cloud (BYOC) option, catering to organizations with large-scale workloads and relaxed latency requirements.

How does the WarpStream acquisition benefit Confluent's customers?

The acquisition allows Confluent to offer data streaming solutions for all customer needs, including fully managed (Confluent Cloud), self-managed (Confluent Platform), and now BYOC with WarpStream, providing more flexibility and options for different deployment scenarios.

What are the key features of WarpStream's BYOC architecture?

WarpStream's BYOC architecture is built directly on object storage, similar to Confluent's Kora engine. It's designed for large-scale workloads with relaxed latency requirements, making it ideal for logging, observability, and feeding data lakes.

Will the acquisition of WarpStream impact Confluent's financial results for 2024?

Confluent does not expect the acquisition to have a material impact on its financial results for the remainder of 2024.

What future plans does Confluent have for WarpStream's technology?

Confluent plans to add features such as processing and governance to WarpStream BYOC in the future, aiming to provide a complete data streaming platform solution for high-volume logging and observability workloads.

Confluent, Inc.

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