16 Companies Snowflake Could Buy to Stay Ahead of Databricks – Business Insider

  • Snowflake spent $800 million on acquiring a machine-learning platform with little revenue, Streamlit.
  • As rival Databricks quickly encroaches, Snowflake might need to look at other acquisitions to grow.
  • Here are 16 companies that experts say Snowflake could buy to keep it ahead.

Snowflake was a pandemic darling and had one of the largest software initial public offerings in history.

But it isn’t the only company looking to build a better experience managing massive amounts of data.

Snowflake’s advantage comes from its approach to building a straightforward experience for storing and accessing data compared to competitors like Amazon’s Redshift. But Databricks is quickly emerging as a rival, now worth $38 billion, and it’s moving further into Snowflake’s backyard.

That means $67 billion Snowflake’s relentless focus on making the best data-warehousing tool may be a liability rather than an advantage. It finds itself quickly needing to move into areas it has traditionally ignored, like natively supporting the tools of choice for data scientists.

Snowflake originally started with supporting tools to present data to non-data specialists. But recently the platform has expanded to support broader-use cases, including data science, data engineering, and other forms of analytics, Noel Yuhanna, a Forrester vice president and principal analyst, said. 

“We find that organizations don’t want 10 different platforms to support various initiatives but an integrated data platform that can support multiple use cases across multiple personas,” he said.

So Snowflake is now playing defense, and it has to look to new areas for growth. One option for growth could be to acquire new companies. Snowflake announced that it would acquire Streamlit, a startup with practically no revenue, for $800 million in March — and its acquisition spree might not be over.

To find out which companies could be a target of Snowflake’s next acquisition, Insider asked analysts which buys could give it a leg up against Databricks. Company valuations listed are according to most recent public announcements.

Here are 16 companies industry insiders and analysts said could fill Snowflake’s gaps in machine learning and big data, listed from least to most valuable where valuations are known:

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