Veeam, the Dominant Market Leader, Announces Record 2018 Results

BAAR, Switzerland: February 13, 2019:  Veeam Software, the leader in Backup solutions that enable Intelligent Data Management, today announced results from fiscal year 2018, fresh off of 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. Veeam delivered $963 million in total bookings – 16 percent growth year-over-year (YoY) and its 12^th consecutive year of organic double-digit bookings growth, as it added 48,000 new customers in 2018, an average of 4,000 new customers each month. This strong customer momentum and bookings growth builds on 2017 results outpacing the industry, and validates the growing demand for Veeam Intelligent Data Management solutions in businesses of all sizes across the globe.

“Opportunities of data management, compliance and risk, data theft and cybercrime, are expected to continue to present businesses with challenges throughout 2019, and into the next decade. What we have seen in 2018 is that no data is entirely secure. Customers are looking for an approach to manage data that unlocks its use and potential to drive business transformation but doesn’t lock their data into one vendor or increase their risk exposure,” said Ratmir Timashev, co-founder and Executive Vice President (EVP) of Sales & Marketing at Veeam.

Timashev added: “By strengthening our offering via our most powerful partnerships with Hewlett-Packard Enterprise (HPE), NetApp, Cisco, and now Lenovo, Veeam has done just that. We are leading the industry by empowering businesses to do more with their data backups, providing new ways for organizations to generate value from their data, while solving other business opportunities. Veeam has yet again achieved consistent company growth and profitability in this transformative market of data management in Hybrid-Cloud - and Veeam will continue to dominate. Together, with our partners, customers and alliances, and with our recent announcement of general availability for new cloud data management capabilities as part of Veeam Availability Suite 9.5 Update 4, our most important product launch in company history, we have solidified our position as the dominant leader in Intelligent Data Management and one of the largest private software companies in the world.”

2018 Customer, Product and Partner Highlights

• Veeam announced RTM for new cloud data management capabilities as part of Veeam Availability Suite 9.5 Update 4, followed by recent general availability. This was one of the most important and anticipated releases to date for Veeam, providing simple, flexible and reliable solutions to help customers migrate to and keep data available in the hybrid cloud regardless of its location. These new capabilities – Cloud Tier, Cloud Mobility, and new data governance capabilities – allow Veeam to deliver virtual, physical, and cloud data management, for any application, and any data, across any cloud.
• Veeam for Windows and Linux physical servers and workstations (Veeam Agents) and Veeam Backup for Microsoft Office 365 were the fastest growing products in Veeam’s history with 129 percent and 549 percent YoY respectively. Veeam Backup for Microsoft Office 365 has now been downloaded by more than 55,000 organizations, representing over 7 million user mailboxes.
• Now with 330,000 customers worldwide, new Veeam customers includeWelch’s, Anheuser Busch Employee Credit Union, Fravega, Dorel Juvenile, Mizuno, Rabobank, KLM Royal Dutch Airlines, Norfolk & Suffolk NHS Foundation Trust, James Cook University and DKSH Corporate Shared Services Centre.
• Recognized twice as Microsoft ISV Partner of the Year, Veeam is now generating 1.9 million hours of Microsoft Azure consumption every month.
• As the most impactful and profitable Veeam alliance in 2018, Hewlett-Packard Enterprise (HPE) achieved the highest magnitude of revenue growth YoY for joint closed deals in 2018, supported with a move to a Global Supply Chain agreement increasing, the resell capabilities for resellers and customers. Mutual investments by both HPE and Veeam are expected to fuel continued commitment and accelerated pipeline growth in 2019.  
• Through participation in Cisco Solutions Plus program, Veeam and Cisco deals grew 967 percent YoY, an example of how easy it is for partners to quote and configure Veeam and Cisco data center solutions through a single ordering system. Veeam expanded its collaboration with Cisco to deliver Veeam Availability on Cisco HyperFlex – a new, highly resilient data management platform that provides seamless scalability, ease of management, and support for multi-cloud environments through Cisco support services. 
• Veeam expanded the success of the NetApp alliance from product integration to a full resell agreement that includes NetApp Data Fabric solutions. Veeam launched its Global Resell agreement with NetApp in Q1 2018 and followed that by enabling NetApp customers to purchase joint NetApp ONTAP and Veeam Availability solutions from joint resell partners around the globe.
• Veeam expanded and strengthened its partnership with Nutanix by launching Veeam Backup for Nutanix AHV in July 2018. After just 2 quarters of this product being available, downloads have increased 500 percent.
• Veeam announced a new global partnership with Lenovo to offer customers integrated solutions combining high-performance storage with trusted data protection which is sold directly from Lenovo and its resellers in a single transaction.
• The Veeam Cloud & Service Provider (VCSP) segment grew 23 percent YoY, now with 21,700 Cloud Service Providers, 3,800 licensed to provide Cloud Backup & DRaaS using Veeam Cloud Connect.
• Cloudhas been the fastest growing segment of Veeam’s business for the past 8 quarters. Veeam reported 46 percent YoY growth in its overall cloud business for 2018.
• N2WS, a Veeam company and a leading provider of cloud-native backup and disaster recovery for Amazon Web Services (AWS), grew annual recurring revenue (ARR) by 83 percent YoY.

Veeam Operational Investments and Executive Appointments

Veeam heavily invested in its team throughout 2018, most notably announcing a plan to invest $150 million to expand its main Research and Development (R&D) Center in Prague as it continues its history of trailblazing innovation. The investment allows Veeam to attract an additional 500 software developers, adding to its current workforce of more than 3,500 employees worldwide with plans to add an additional 1,000 employees this year.

Two Veeam executive roles were recently appointed to accelerate the company’s geographical expansion: Paul Strelzick, GM & SVP of Sales, Americas and Daniel Fried, GM & SVP, EMEA. Strelzick most recently served as an advisor and consultant to Insight Venture Partners. Prior to this, he was the Executive Vice President of Worldwide Sales at SolarWinds for 10 years. Having specialized in building efficient and seamless marketing and sales pipeline operations, Strelzick is ideally placed to drive Veeam’s Americas business in line with priorities. Previously retired from Veeam in 2017 as the SVP of Sales & Marketing, EMEA, Fried has returned to Veeam and will now oversee EMEA’s strategic direction and expansion across all segments, working to enhance partner opportunities and increase share in emerging markets.  

"The data protection and replication software market remains a dynamic, competitive industry with global revenue exceeding $7 billion and forecast to grow 4.3 percent annually,” said Phil Goodwin, Research Director, IDC. “Veeam has continued to expand the depth and breadth of its data availability solutions as evidenced by today’s Cloud Data Management announcement. Additionally, Veeam intends to use the recent Insight Venture Partners investment to help fuel continued double-digit growth.”

Registration is now open for VeeamON 2019, the world’s premier event for Intelligent Data Management, which will take place May 20 – 22, 2019, in Miami, FL. Nearly 10,000 customers, partners and influencers attended VeeamON 2018 in Chicago, IL and the regional VeeamON Forum events held all around the world.