Yahoo is considering plans to spin off its Hadoop software unit, which could be a billion dollar business, the Wall Street Journal reports.
Hadoop is open source data analysis software, which Yahoo (as well as others) has been working on for years now. Yahoo uses Hadoop to nuke spam from its mail, and to pick which stories hit its homepage.
Yahoo would spin off the engineers at the company working on Hadoop, keeping a stake in the new startup. It would continue developing software based on Hadoop, competing with Cloudera, a startup working on the same stuff.
The spun out company would make money selling its services for Hadoop software.
This sounds like a smart idea for Yahoo. It could keep a stake in a non-core business that has the potential to become pretty big. And without Yahoo’s bureaucracy, it could fight with Cloudera and other companies in the space.
On the other hand, it might be demoralizing for engineers at the company as Yahoo distances itself from an exciting technology project.
Any Yahoos out care to weigh in on the move? You for it, or against it?