38% Y/Y Bookings Revenue Growth for Veeam in 2Q16

Veeam Software, Inc. announced a 38% Y/Y growth in total bookings revenue for 2Q16, demonstrating increasing demand by enterprises over the world for 24.7.365 Availability.

Growth in quarter-over-quarter total bookings revenue was 40%, further indicating Veeam’s 1H2016 success in delivering availability solutions which enable SLAs for RTPO of less than 15 minutes for ALL applications and data.

With 70% of Fortune 500 and 50% of the Global 2000 now Veeam customers, the company reported a 40% Y/Y increase in total bookings revenue from enterprise deals and has surpassed 200,000 paid customers across the business.

“The first half of 2016, has been monumental for Veeam,” said Peter Ruchatz, CMO, Veeam. “Our penetration into the enterprise market continues to accelerate as they [enterprises] seek to meet the needs of users who are embracing transformative technologies such as cloud, mobile and social platforms. We announced the upcoming launch of Veeam Availability Suite 9.5, and secured the Leaders position in Gartner’s June 2016 Magic Quadrant for Data Center Backup and Recovery Software. We expanded and strengthened our executive team to continue our journey to a $1 billion company, while also reaching a major milestone – crowning our 200,000th customer. All in all, it has been a fantastic start to 2016.”

Further signifying growth, a decade after introducing its first product – Veeam FastSCP for VMware ESX Server – Veeam also announced this quarter that it has surpassed 200,000 customers.

Its 200,000th customer is the Hard Rock Hotel & Casino Las Vegas. The epitome of an Always-On Enterprise, which its clientele expects to operate 24.7.365, the Hard Rock Hotel & Casino spans more than 26 acres, boasts more than 1,500 guest rooms, a bustling casino floor, customizable meeting and convention space, multiple renowned entertainment venues, along with a myriad of restaurants and bars.

“We are proud to partner with Veeam for our resort’s Availability needs,” said Kevin Ragsdale, IT director, the Hard Rock Hotel & Casino. “Veeam brings unprecedented software technology to the market. Its platform’s capabilities will ensure the high level of Availability needed for our 24.7.365 operation to help us deliver on the needs of our customers.”

“While it is a well-known fact that legacy backup technologies no longer satisfy the needs of modern business, what excites Veeam is te extent to which customers are embracing our innovative approach to delivering availability across the enterprise,” stated Peter McKay, newly appointed president and COO, Veeam. “Our latest results clearly indicate that a seismic shift is taking place within the industry, and to have the Hard Rock Hotel and Casino Las Vegas as our 200,000th customer is a great testament to how vital Veeam is in modern business. Businesses of all sizes are abandoning ‘traditional’ thinking and are beginning to understand that 24.7.365 Availability is now a prerequisite. Our strategy for the future is clear, and we are continuing to add richer features and functionality to our portfolio which will deliver not only on the needs of today’s users, but provide a foundation for the future.”

“Veeam continues to show strong revenue growth, even in the face of market headwinds,” said Phil Goodwin, research director for protection, availability and recovery, IDC. “The overall data protection and recovery software market grew just 0.9% in 2015 as measured in current dollars, yet Veeam grew at 21.5% despite a sharply stronger US dollar. In order to reach the company’s stated goal of $1 billion annual revenue in 2019, it needs to average 30% Y/Y growth. These recent results put it on that pace and then some.“

Additional highlights of Veeam from 2Q16 include:

• The company appointed Peter C. McKay, most recently SVP and GM, Americas with VMware, as its president and COO and promoted William H. Largent, currently EVP, as its new CEO.
• The firm continues to see growth in the cloud, especially as the demand for DRaaS intensifies. The Veeam Cloud & Service Provider (VCSP) program, which offers ready-made opportunities for service providers to acquire new customers and grow recurring revenue, reported an increase of 76% in the number of transactions Y/Y. The program has grown to more than 12,400 service and cloud providers worldwide, with more than 1,900 of those partners licensed to provide services for Veeam Cloud Connect.
• 205,000 customers worldwide: Veeam added 12,500 total paid customers in 2Q16, an increase over the historical average of approximately 3,500 new customers each month.
  11.8 million VMs are protected with Veeam Availability Solutions.
• Expansion to 41,000 ProPartners worldwide: commitment to the channel continues to attract new resellers and VARs to availability solutions.
• Microsoft Hyper-V new license bookings: 49% growth over the same period during the previous year. Veeam was named a finalist in 2 categories for the 2016 Microsoft Partner of the Year award: Application Development and Microsoft Azure Certified ISV Solution. The award is a recognized standard for excellence in the industry.