Veeam revenue increases as enterprise deals grow
Highlighted by the largest customer deal in its history and a big bump in enterprise bookings, Veeam reported 34% year-over-year total bookings growth in the last quarter.
There has been a push in the last year-and-a-half to go after the enterprise more aggressively, said Peter McKay, Veeam co-CEO and president. The data protection vendor reported 84% year-over-year growth in new enterprise bookings for the third quarter.
A $4.1 million deal with a European company is Veeam’s biggest ever enterprise booking, McKay said, although he would not identify the customer. The Veeam revenue report showed more $500,000 deals closed in 2017 than in the past four years combined.
Veeam’s recently formed alliances with big name vendors — including Hewlett Packard Enterprise and Cisco — are helping to accelerate the enterprise revenue, McKay said.
“That partnership ecosystem has become a really critical part” of Veeam growth, he said.
The cloud continues to be a bigger piece of the Veeam revenue picture. It took six years for Veeam to net $50 million in bookings for its cloud business, but it has hit $54 million in three quarters this year, according to McKay. Veeam also reported a 72% year-over-year increase in cloud bookings for the third quarter.
Veeam is averaging 4,000 new customers each month. The vendor claims 267,500 customers and 16,700 service provider partners using its software.
Looking for more in Veeam revenue, platform
Veeam is shooting for $1 billion in annual bookings by 2018 and $1.5 billion by 2020. It hit $607 million in 2016, 10 years after the company launched. At its current pace, Veeam is projected to hit about $800 million in revenue by the end of the year.
“We have to have a good Q4 to get there,” McKay said of the 2018 goal.
Veeam has invested in smaller companies such as cloud data protection vendor N2WS. Veeam has an OEM agreement through which N2WS technology will be part of Veeam Availability for Amazon Web Services (AWS).
McKay said to expect a technology acquisition soon.
“We’re looking. We’re active,” McKay said, adding that he doesn’t feel acquisitions are needed for Veeam revenue to hit $1.5 billion.
McKay pointed to data management, visibility and protection as areas for growth. McKay said there are areas where Veeam could improve its processes, for example in better figuring out how go-to market strategies differ by country.
“We’re incredibly paranoid of taking our eyes off the ball,” McKay said.
Veeam’s competition includes Commvault and Veritas. McKay said he sees the amount of funding and competition from startups — such as Cohesity and Rubrik — as a good sign.
“It makes us better,” McKay said.
Version 10 of Veeam’s Availability Suite is due soon. That upgrade will feature continuous data protection and object storage support. Veeam also plans to add new elements to the platform that it hasn’t publicly disclosed yet, McKay said.
Veeam has recently expanded into physical backup as well as multi-cloud support for Microsoft Azure and Azure Stack, AWS, IBM Cloud and software-as-a-service applications such as Microsoft Office 365.