Veeam Software cracked $600 million revenue mark in 2016

While much of the storage market is stagnant or down, data protection vendor Veeam Software said it grew revenue 28% in 2016 by expanding its business into enterprises and the cloud.

Veeam, a privately held company, this week reported its financial results for 2016. It claimed $607.4 million in bookings in 2016, which included new license sales and maintenance revenue, compared to $474 million in 2015.

Doug Hazelman, Veeam Software’s vice president for product strategy and chief evangelist, said the bulk of the growth came from its flagship Veeam Availability Suite. The suite handles backup, restores and replication through Veeam Backup and Replication along with monitoring, reporting and capacity planing in Veeam ONE for VMware vSphere and Microsoft Hyper-V deployments.

But the Veeam Cloud and Service Provider VCSP program, which offers Disaster Recovery as a Service (DRaaS) and Backup as a Service (BaaS) helped contribute to the revenue growth, Hazelman said.

VCSP generated 79 percent year-over-year growth in 2016 as Veeam pushed to move upstream into the enterprise. License booking grew by 57% annually from enterprise-level customers.

Veeam reported the VCSP program expanded to more than 14,300 service and cloud providers. The vendor claims 230,000 customers worldwide and its Veeam Availability Suite protects up to 13.3 million virtual machines, with  1 million virtual machines using the VCSP management product.. The company added 50,000 paying customers last year.

“They are not all enterprises customers,” Hazelman said. “It’s (still) a lot of SMB commercial accounts (but) we added 761 enterprise customers in 2016.”

Hazelman said the cloud portion of Veeam’s business helped close many deals. Veeam has four business segments — SMB, commercial accounts, enterprise-level accounts and the cloud.

“The VCSP product is the fastest growing,” Hazelman said. “It’s one of the fastest growing segments. It’s not the biggest in revenue but it’s the fastest growing.”

Last year Veeam added a fully functional physical backup server backup product. Veeam Software initially started as a virtual machine backup specialist but moved into physical backup due to customer requests as it moved into enterprise accounts.

“The physical server did help a lot on closing deals but it didn’t add a lot to the total year number,” he said.