Confluent: Data in Motion

Confluent, Inc. operates a data streaming platform in the United States and internationally. It offers Confluent Cloud, a managed cloud-native service for connecting and processing data; and Confluent Platform, an enterprise-grade self-managed software that connects and processes data in real-time with the foundational platform for data in motion. It also provides Kafka Connect that enables to build connectors to integrate Apache Kafka with other apps and data systems; ksqlDB, a database for stream processing applications; and stream governance, a solution that is designed for the intricacies of streaming data, which allows teams to expand usage of real-time data without bypassing requirements for risk management and regulatory compliance. In addition, it also offers training and professional services. The company was formerly known as Infinitem, Inc. and changed its name to Confluent, Inc. in September 2014. Confluent, Inc. was incorporated in 2014 and is headquartered in Mountain View, California.

Executive Summary

Confluent (CFLT) commercialized Apache Kafka. The thesis is "Data Streaming." Old databases are "Data at Rest" (checking a bank balance). Modern AI apps need "Data in Motion" (fraud detection during the swipe). Confluent is the central nervous system that moves data between systems in real-time.

1. Kafka is the Standard

Kafka is used by 70% of the Fortune 500.

Complexity: Kafka is incredibly hard to manage. It breaks easily.
The Value Prop: Confluent says: "Don't hire 10 expensive engineers to manage Kafka. Just rent Confluent Cloud from us. It never breaks."

2. Flink

Confluent acquired a company to add "Apache Flink" to its platform.

Processing: Kafka moves data. Flink processes data (filters, aggregates) while it moves. This unlocks real-time analytics.

Risks to the Thesis

Cloud Native Kafka: AWS (MSK) and Azure offer their own managed Kafka versions. They are "good enough" and cheaper.
Redpanda: A rewrite of Kafka in C++ that is faster and cheaper (no JVM). It's a technical threat.

Conclusion

If you believe the future is "Real Time," Confluent is the infrastructure plumbing.