Cloud firm Veeam sees Q1 revenue jump on new subscription model, product update

Cloud data management firm Veeam has posted double-digit growth for the first quarter of 2019 thanks to the availability of a new subscription model, it said in a statement.

The Switzerland-based company has seen a 30% increase in annual recurring revenue and 16% growth in total bookings year-on-year due to the accelerated adoption of hybrid cloud by its businesses, the statement added.

In the SAARC region, Veeam witnessed a 150% YoY increase in total bookings while adding 50% (YoY) partners in the first quarter of 2019, it said. Veeam claims to have more than 343,000 customers with an average addition of 4,000 new customers each month.

“We focused on core priorities and that will continue to fuel our growth and validate our leadership position throughout the year. We are now focused on an aggressive strategy to help businesses transition to cloud with best-in-class backup and cloud data management solutions,” said Ratmir Timashev, co-founder and executive vice president of sales and marketing at Veeam. 

The privately-held firm said that adopting hybrid cloud helped it drive data availability, agility and accelerate business. In January this year, the company had launched the Veeam Availability Suite 9.5 Update 4, its latest software solution for cloud data backup and replication, which is one of its biggest drivers of growth.

According to technology research firm IDC, 90% of organisations are expected to embrace a multi-cloud strategy within three years. Veeam said that the shift will give it a significant growth opportunity.

“This strategy has also fueled our new Veeam Instance Licensing (VIL) model, which was created to provide flexibility to move workloads from on-premise to public cloud and back without an additional cost. Veeam is the first in the industry to offer this portable, game-changing licence approach for managing multi-cloud environments,” Timashev added.

Veeam said that it was well-poised to deliver virtual, physical, and cloud data management for any application and data across any cloud platform. It added that it could also provide increased security and compliance including GDPR and malware prevention.

The Swiss company's backup for Microsoft Office 365 was also its fastest growing product reporting a 152% growth in revenue bookings YoY. Its cloud business grew 31% YoY.

“Veeam’s commitment to the cloud data protection market parallels what we see as a continued strong, growing and dynamic space. The company continues its strong market growth in both segments by continuing to offer new products and services matched to the rapidly evolving cloud and on-premise requirements,” said Phil Goodwin, research director at IDC. 

Early this year, Veeam had raised $500 million investment from Insight Venture Partners and Canada Pension Plan Investment Board (CPPIB), enabling the company to pursue an aggressive acquisition and investment strategy, it said.