Veeam reports double-digit Q1 growth

Backup solutions provider Veeam has announced results from Q1 2019 following the  January launch of Veeam Availability Suite 9.5 Update 4.

Veeam reported a 16% increase in total bookings year-over-year (YoY), celebrating more than 343,000 customers, staying consistent with an average of 4,000 new customers each month. Veeam's Annual Recurring Revenue (ARR) increased 30% YoY, a testament to the success of a new unique subscription pricing model for all new Veeam products, including new Veeam Availability Suite 9.5 Update 4.

Released to the public at the beginning of Q1, it has more than 200,000 downloads to date.

"In my first full quarter back at Veeam leading sales and marketing, we focused on core priorities that brought us clear success, and that will continue to fuel our growth and validate our leadership position throughout the year," says Veeam co-founder and sales and marketing executive vice president Ratmir Timashev.

"We are now focused on an aggressive strategy to help businesses transition to cloud with Backup and Cloud Data Management solutions.

"IDC has forecast that 90% of organisations will embrace a multi-cloud strategy within three years, which provides us with a significant growth opportunity to leverage the shift our customers and partners are making and ensuring we support them in every aspect – with the very best products and solutions," he says.

"This strategy has also fuelled our new Veeam Instance Licensing (VIL) model, which was created to provide flexibility to move workloads from on-prem to public cloud and back without an additional cost.

Veeam Availability Suite 9.5 Update 4, providing simple, flexible and reliable solutions to help customers migrate to and keep data available in the hybrid cloud regardless of its location, has recorded more than 200,000 downloads in less than three months since being generally available in January 2019.

New product capabilities allow Veeam to deliver virtual, physical, and cloud data management, for any application, and any data, across any cloud, including:

Cloud Tier – Unlimited capacity for long-term data retention by using native, cost-effective object storage integration;

Cloud Mobility – Easy migration and recovery to AWS, Azure and Azure Stack;

New Data Governance Capabilities – Increased security and compliance including GDPR and malware prevention.

Veeam Backup for Microsoft Office 365 reported 152% revenue bookings growth YoY.

Veeam Backup for Microsoft Office 365 has now been downloaded by more than 55,000 organisations, representing over 7 million user mailboxes.

Cloud continues its growth momentum, with Veeam reporting 31% YoY growth in its overall cloud business for Q1 2019.

IDC research director Phil Goodwin says, "Veeam's commitment to the cloud data protection market parallels what we see as a continued strong, growing and dynamic space.

"The overall cloud-based data protection-as-a-service market is growing at a 16.2% CAGR, much faster than the 3.4% CAGR for traditional data protection and recovery software.

With 343,000 customers worldwide, new Veeam customers include AKKA Technologies, Halton Borough Council, Sonoco Trident, 3Banken, Nova Scotia Liquor, Colorado Regional Health Information Organisation (CORHIO), Northeastern Illinois University (NEIU), Clear Concepts, YMRILINK, TBEA Energy India.

The Veeam Cloud and Service Provider (VCSP) program has grown to 22,500 partners, with 4,000 of those also qualified to provide Cloud Backup and DRaaS using Veeam Cloud Connect.

Veeam alliance resell agreements with, HPE, Cisco, NetApp and Lenovo reported 56% total transaction growth YoY and 39% YoY revenue growth, together completing the overall data management story for global alliance reseller partners.

Veeam received a $500 million investment from Insight Venture Partners and Canada Pension Plan Investment Board (CPPIB) in early January – one of the largest investments in the history of storage software.

This investment is intended to enable Veeam to pursue an aggressive acquisition and investment strategy.