Veeam Reports 17% Y/Y Revenue Bookings Jump

Veeam Software, Inc. announced Q3 2015 results which once again show that enterprises are embracing its approach of delivering holistic availability solutions.

When compared to Q3 2014 Veeam experienced:

• 17% growth in quarterly revenue bookings, or an increase of 26% in constant currency;
• 86% year-over-year revenue growth specifically for Veeam Availability Suite Enterprise Plus edition.
• 49% revenue growth for all editions of Veeam Availability Suite; and
• 23% year-over-year growth in orders specifically from enterprise customers.
  

Veeam’s growth, especially in the enterprise sector, strikes a stark contrast with the declining revenue performance of the largest legacy backup competitors. Clearly, CIOs recognize that backup isn’t enough. They need availability solutions, and only Veeam has proven it can meet the ‘Always-On’ demands of customers, employees and partners. Indeed, ITs are already eagerly anticipating the launch of the Veeam Availability Suite v9 and the capabilities it can deliver, judging by the 25,000 who have registered to receive news and feature updates prior to its availability later this quarter.

“Our new customers consistently tell us that their legacy backup solutions are failing to meet the demands of the Always-On Enterprise,” said Ratmir Timashev, CEO, Veeam. “So it’s not surprising that, last quarter, we saw our enterprise results increase dramatically as these customers conclude that they need a holistic availability approach for their entire enterprise and not just a pieced together, ad-hoc design using legacy systems.“

Growth in Cloud Drives Creation of Veeam Cloud and Service Provider Program
Veeam’s growth has not been limited to enterprise sales of Veeam Availability Suite. The cloud has also been a massive driver of Veeam. For example, the Veeam cloud provider program reported an increase of 73% in the number of transactions year-over-year, and has more than 9,700 service and cloud providers as part of the program worldwide. This figure includes more than 980 service providers licensed to offer services for Veeam Cloud Connect.

In fact, the growth in the number of service providers offering Veeam cloud services has led Veeam to launch the Veeam Cloud and Service Provider (VCSP) program, which offers ready-made opportunities for service providers to acquire new customers and grow recurring revenue, especially as the demand for DR as a Service (DRaaS) intensifies.

In a recent survey, 71% of Veeam partners said over half of their customers are interested in DRaaS when asked to consider both current and potential customers in their target market. The extended functionality of Veeam Cloud Connect for VM replication and failover in v9 also gives service providers the ability to provide their customers with cloud-based DRaaS.

New VP of Global Alliances
Veeam also announced that it is expanding the breadth of its team to further its deep-rooted partnerships and business opportunities with alliance partners such as Cisco Systems, Inc., EMC Corporation, HP, Microsoft Corporation, NetApp, Inc. and VMware, Inc. with the appointment of Andy Vandeveld as VP, global alliances.

In this new role, he will oversee Veeam’s strategic relationships with its alliance partner ecosystem in order to carve out business opportunities to advance the delivery of Veeam’s Availability solutions through, for example, cloud-based and software-defined channels. In addition, and harnessing the core of Veeam’s ‘Better Together’ partner philosophy, Vandeveld will spearhead revenue acceleration within the wider Veeam partner base and look to form tighter ties with systems integrators across the globe. Prior to joining Veeam, he has held a number of executive positions at companies such as Citrix Systems, Inc., where he was VP, enterprise partner sales, and at Brocade Communications Systems, Inc. as worldwide VP, global systems integrators. At Veeam, he will report to Daniel Fried, SVP, WW sales and marketing.

Global Humanitarian Organization Embraces Data Center Availability
World Vision, a humanitarian organization, is one of the 11,300 new customers that made the decision to abandon legacy backup in favor of Veeam Availability solutions. Its legacy backup tool was providing poor performance, which led their IT team to seek a true availability solution. With Veeam deployment, World Vision is able to provide its 46,000 staff members in 105 countries 24x7x365 access to applications and data.

“The legacy backup tool was traditional in nature, so it lacked advance recovery features that capitalize on virtualization, like granular recovery and automated recovery verification,” said Kenneth Seow, IT manager, World Vision. “Veeam helps reduce risk by providing much quicker backup than our legacy tool. Our backup window decreased by 63% with Veeam. Faster backup lets us backup more frequently, allowing us to add 30% more backups for more recovery points. Veeam backup is also very stable. Our legacy backup tool was unpredictable, causing us to miss backups whenever it exceeded the allowable backup window.“

Veeam’s quarterly financial performance isn’t the only indicator of enterprise migration from legacy backup to availability.

During Q3 2015, the firm also achieved the following:

• 168,000 customers in 200 countries: Veeam added 11,300 total paid customers in Q3 2015. Veeam’s availability solutions now protect close to 10 million VMs worldwide.
• Expansion to 34,500 ProPartners worldwide: Veeam’s commitment to the channel continues to attract new resellers and VARs to our solutions.
• Employee growth: Veeam now employs 1,950 people worldwide.

Pricing for the new Veeam Availability Suite v9 starts at $1,100 per socket; pricing for Veeam Availability Suite Enterprise Plus starts at $2,400 per socket. Buy any edition of Veeam Availability Suite through December 31, 2015 and save up to 10% as well as upgrade to v9 for free when available. In other regions, Veeam Availability Suite is available at local pricing.