Only a few IPOs set the heart of the VC world racing. SnapChat certainly did it (and produced an unprecedented ROI for the investors club at my daughter’s former high school). For the next big thing, my bet is on Cloudera.
The confluence and evolution of big data, cloud, and Google’s search technology helped companies like Cloudera get started. As Mike Olson, co-founder, chairman and chief strategy officer of Cloudera, wrote in a letter to investors, “Google, Facebook and Yahoo had discovered big data before anyone else, but it was obvious that it was coming to banks, hospitals and other traditional companies.”
One of those ‘other’ areas is the massive communications service provider industry, and it’s in this space that Argyle Data has been working with Cloudera for several years. In 2016 we announced a joint platform to deliver a real-time analytics platform that delivered its initial ROI and proof of concept in tackling mobile fraud.
Our big data, supervised and unsupervised machine learning platform aligns with the Hadoop framework in an elegantly symbiotic and uniquely powerful combination. Their standards-based open-source Hadoop framework enables us to apply the power of massive parallel processing to big data faster and more affordably than ever before, using inexpensive commodity servers.
Our joint solution is being used to solve serious business challenges. For example: approximately 40% of all mobile carrier bad debts are related to subscription fraud – using false credentials to acquire high value smartphones, failing to pay the monthly subscription, and selling the handsets on. Credit checks don’t provide enough protection against this activity. For a major global operator, our solution applies predictive analytics to big data sources. Machine learning algorithms capture geo-spatial features from the carrier’s billing database, plus social network analysis from CDRs, and integrate with additional data sources to correctly predict fraudulent applications. This has reduced subscription fraud incidents by 75% and, in addition to saving millions of dollars in losses, protects honest potential subscribers from rejection or high advance payment requirements resulting in increased conversion ratios.
This is just one example. Today, we have expanded our application to deliver real time predictive analytics for use cases including subscriber validation, OTT analytics, mobile banking, fraud detection and IoT security.
Of course we are just one of Cloudera’s many ecosystem partners collaborating with them to build new business solutions. But what Argyle Data and Cloudera are currently doing together is particularly compelling, delivering proven ROI to major mobile carriers and opening promising new opportunities to apply our predictive analytics platform in broader financial and enterprise areas.
Our work together exemplifies the power of innovators getting together to solve real business problems. For this reason, we are watching Cloudera’s progress towards IPO with enormous interest, and wishing them the highest levels of success.