Annual Recurring Revenue Up 26% Y/Y in 2Q19 for Veeam

Veeam Software, Inc. announced results from 2Q19.

Having recently exceeded $1 billion in annual bookingshttps://www.veeam.com/news/veeam-surpasses-1-billion-$s-in-bookings-as-it-accelerates-cloud-data-management-leadership.html, its annual recurring revenue (ARR) increased 26% Y/Y in 2Q19, following the success of a unique subscription pricing model introduced earlier this year for all its new products, including new Availability Suite 9.5 Update 4.

Hailed as one of the most important releases in company’s history, it is approaching 350,000 downloads since its release in January.

“As we continue to heavily invest in our R&D, sales and marketing, and partner ecosystem, we’re seeing increased adoption of Veeam’s Subscription licensing among our customers across all regions worldwide,” said Ratmir Timashev, co-founder and EVP of sales and marketing. “Each geography reported growth, which shows that, and as we move into Act II of our evolution – the hybrid cloud – it’s an exciting time to be at Veeam. 72% of organizations are looking to embrace Cloud Data Management and are transitioning to cloud strategies. We’re excited to support their journey and meet data expectations as the No. 1 player in Cloud Data Management.

“Collaboration with strategic technology partners has never been stronger or in higher demand. We expect to make additional partner announcements in 2H19 to further feed the demand of our partners to combine Veeam backup and data protection software with industry-leading hardware, storage and hyperconverged solutions. Our new ‘with Veeam’ program, which is receiving overwhelming positive response, is just one strategy of how Veeam will innovate and collaborate with its technology partners to deliver a combined hardware plus software solution to enhance customer choice and flexibility.“

Customer, Product and Partner Highlights
• Veeam Backup for Microsoft Office 365, the fastest growing product in company’s history, reported 270% ARR growth Y/Y. It has now been downloaded by more than 75,000 organizations, representing over 8 million user mailboxes. Version 3 of the product was released in early 2Q, solidifying the company’s dominance in the Microsoft Office 365 backup market, providing businesses with 30x faster backup, improved security and enhanced customer visibility and analytics.
• With more than 355,000 customers worldwide, new customers include Make-A-Wish Foundation, Mundo Cuervo, Porsche Informatik, Vancouver Canucks, ABM, Ferrari Agroindustria, Schleswig-Holstein Netz AG, Premier Bank and Ducks Unlimited Canada.
• The Veeam Cloud & Service Provider (VCSP) program has more than 23,500 partners with 4,100 of those also qualified to provide Cloud Backup & DRaaS using Veeam Cloud Connect.
• Technology alliance resell agreements with HPE, Cisco, NetApp and Lenovo reported 327% total transaction growth Y/Y and 123% Y/Y bookings growth, together completing the overall data management story for global alliance resell partners.
• The firm was awarded the HPE 2019 Global Technology Partner of the Year, recognized for financial performance, innovative solutions, and driving meaningful business results for shared customers.
• It announced the new ‘with Veeam’ program in 2Q, partnering with enterprise storage vendors to provide customers with comprehensive secondary storage solutions that combine Veeam software with storage and HCI infrastructure hardware and management stacks. Solutions have been announced with ExaGrid and Nutanix with availability planned for 2H19.

“Veeam continues to show strong bookings growth in a highly competitive market. Transitioning from a license model to a subscription model has been a challenge for many vendors, but Veeam seems to be doing so successfully. IDC research shows that more than 90% of organizations expect to use hybrid and/or multi-cloud data protection solutions within the next 12 months, and this is the sweet spot that Veeam is aiming for,” said Phil Goodwin, research director, IDC.

“Veeam’s Cloud Data Management platform now enables us to backup and restore IT resources in record time. This provides us with a reliable basis for Digital Transformation. With Veeam, we gain more agility, which benefits our customers worldwide. We are accelerating the time-to-market of new software releases and bringing digital innovation to the road faster,” said Christoph Buchstätter, head of computing and platform services, Porsche Informatik.

“Veeam keeps our hospitality services fully operational across all business units so we can optimize experiences for fans and customers. From ticket scanners to Wi-Fi to the point-of sale system, Veeam keeps them available. It also guarantees we can check customers into our hotels, accept payment for their stays, book reservations in our restaurants and take payment for their meals. Veeam delivers the scalability, reliability and Cloud Data Management we didn’t have in the past,” said Bryce Hollweg, director of IT, Vancouver Canucks.

“Veeam is so fast and easy to use, giving us time to be innovative and provide direct, immediate value to the organization. If we hadn’t deployed Veeam, we’d have had to hire a full-time person to manage backup. When you combine that salary with money saved on third-party technical support services – because nothing was simple and easy with legacy backup – the total is nearly $200,000 each year. We monetized the IT team, and for the first time in Ducks Unlimited Canada’s history, IT is raising money directly for the mission,” said Raj Perumal, CIO, Ducks Unlimited Canada.