Yesterday, we published our quarterly results which we were able to achieve because of our customers, the open source community, our partners, employees and shareholders. Key open source data technologies such as Apache Hadoop, Spark and NiFi would simply not have the market penetration today without all of you. We continue to see our Connected Data Platforms driving market expansion and adoption, data transformations and tremendous value for our customers.
In fact, we had a strong start to 2016 and we are seeing the large enterprise customers continue to renovate their legacy IT infrastructure AND innovate their business models by deploying Hortonworks solutions at scale. The progress we made during the quarter highlights the continued market adoption of our solutions as well as the power of our “land and expand” business model.
We continue to see customers that need innovative solutions so they can combine new paradigm datasets with legacy datasets inside their datacenters. These composite datasets are then utilized to solve today’s business challenges across a myriad of industries. Hadoop continues to emerge as the technology fueling these use cases and is becoming the data management platform of choice across many enterprises.
Our Connected Data Platforms have emerged as a powerful combination of the Hortonworks Data Platform and the Hortonworks DataFlow platform powered by Apache NiFi. They serve as the cornerstone for industry innovation and community collaboration and are 100% open source and it has become very evident this is also leading to increased market adoption.
In Q1, support subscription billings and support subscription revenue grew triple digits year-over-year. Total billings of $53.7 million were up 91% year-over-year. Support subscription billings in Q1 were up 122% year-over-year representing 78% of the mix. Support subscription revenue was up 110% year-over-year.
June 30th will mark our fifth year of operations and during this short period of time, we have witnessed a tremendous evolution across the IT landscape that has been driven by incredible innovation within the Hadoop ecosystem. We believe this transformation is a “once-in-a-generation” event and has enabled rich use case proliferation to occur across the Connected Data Platforms at incredible velocity.
And at the end of the day, creating transformation across business insights for customers is what this is all about. We see this transformation happening in all industries including retail, healthcare, transportation, manufacturing, financial services, telco, energy, insurance and more. I just wanted to point out a few key examples of customers driving data transformation in a variety of industries.
The transportation industry, for example, is able to derive insights from the Connected Data Platforms and is able to make modern transportation both safer and more efficient.
Ford Motor Company is leading a transformational change in the automotive industry around Smart Mobility. This Smart Mobility initiative leverages HDP to aggregate high volumes of real-time information from many different places across the connected car ecosystem to provide a better consumer experience.
Another example is The MITRE Corporation which is a not-for-profit organization that operates federally funded research and development centers. They analyzed petabytes of airline flight data to advise the FAA on risk mitigation policies.
By deploying HDP, MITRE was able to identify material safety and efficiencies associated with flight operations. As a result, one large airport translated this into approximately $20 million in annual fuel savings and a significant reduction in passenger wait time associated with airline taxi and departure windows.
And yet another example of innovation by a company using HDP to improve transportation efficiency is Bell Helicopter. Bell was founded in 1935 and has always been at the forefront of aviation advancement. By using HDP to collect massive amounts of customer interaction data, Bell was able to dramatically reduce customer support response time. In some cases, from days to minutes ultimately leading to higher customer satisfaction rates.
We are also seeing several forward-thinking municipalities re-architect their IT infrastructure in a fiscally responsible fashion to optimize public transportation. The Metro Transit of St. Louis (or MTL) operates a bi-state public transportation system for the entire St. Louis metropolitan region which historically lacked detailed data on the performance of bus components leading to costly and reactive maintenance work.
By leveraging HDP and one of our telematics partners, MTL created “Smart Buses” that generate real-time IoT data and allow those buses to proactively schedule their own maintenance. The net result is a doubling of average annual miles driven per bus, a greater than 50% reduction in cost per mile driven and a five-fold increase in the mean time between bus failures.
In the healthcare industry, many of our customers are launching Modern Data Applications across the Connected Data Platforms to better research, diagnose and treat cancer.
At Arizona State University (ASU), the largest university in the U.S. and named by U.S. News & World Report as the “Most Innovative School in America” in 2016, a genomic data lake was built with petabytes of genetic data across hundreds of individuals. This data lake enabled the university to transform cancer research by analyzing genomic data with high-performance computation utilizing Apache Spark on YARN (which is effectively the data operating system of HDP).
Through this analysis, researchers can now explore how each individual variant in the genome can influence the expression of a cancer gene, thereby unlocking insight into potentially life-saving treatments.
Simply put, genomic research presents a big data challenge as a single individual’s genome translates into 20 billion rows of calculated data based off 20,000 genes each with 1 million variable DNA locations. In the past, complex SQL queries against datasets of this size were not possible in many instances. By utilizing our technology, these queries can now be completed within minutes.
A leading cancer researcher at ASU who is using HDP for his genomic investigations summed it up best, “Our genome database is simply unapproachable with traditional technology. With HDP, we are able to explore questions we couldn’t before by having both the availability of data and the technical capability to analyze it. It has also sped our time to insight enormously, returning results in seconds. Hadoop has the capacity to significantly transform biomedicine.”
We couldn’t be more pleased with how ASU is utilizing HDP to improve humanity’s understanding of the genetic links to cancer.
The University of Texas MD Anderson Cancer Center has adopted Hortonworks as well and we are very excited about the things they are doing with the platforms.
In addition to these select transportation and healthcare customers, the Hortonworks Connected Data Platforms unlock value from both data-at-rest and data-in-motion for leading customers in every major industry vertical. In fact, we count roughly half of the Fortune 100 as customers.
In the insurance vertical, companies like Progressive and Motorists Insurance are making their operations more efficient, fighting fraud and complying with a growing number of global financial regulations by using Hortonworks solutions today.
Regardless of the use case or the industry, there is a recurring pattern…leading enterprises are choosing Hortonworks’ Connected Data Platforms because they believe “Open, Flexible, Secure and Manageable” are all table stakes for an enterprise-grade platform. These same attributes are also required to build and develop an ecosystem of partners that help the platform flourish and it’s critical for our next-gen data management platform to work seamlessly with our customers’ existing IT environment.
All of these transformational use cases highlight these key points:
Our tag line sums it up perfectly…Hortonworks is powering the future of data.