Veeam recently held its fourth annual analyst summit near San Diego. I have been able to attend 3 of these events, and since the first event in 2016, I have seen it double in size, and gain confidence, scale and customer importance on the back of Ratmir Timashev and Andre Baronov’s leadership.
As an analyst event, they always do a great job, it is focused, yet they provide the opportunity to ensure attendees have an enjoyable experience along the way.
Veeam officially broke the US$1B revenue mark earlier this year, joining an elite band of software firms to achieve this. It has also done this, wisely, in my view, maintaining a privately held status. The private ownership has enabled Veeam to make the path it chooses, not what the market decides for it. While this has some risk, and the founders could certainly cash into the billions with an IPO, it has so far resisted this path.
It has reached the magical billion-dollar mark mainly based on providing backup to the enterprise data centre. That was Act 1. Act 2, of course, involves supporting to the Hybrid Cloud environment. Hybrid Cloud for enterprises large and small is a default model of infrastructure deployment. To do this, Version 10 will have a range of enhancements to integrate backup across any workload sources, e.g. Public Cloud, Private Cloud. It is not just the product that is enhanced; any push towards the cloud environment requires subscription pricing and delivery, again an increased but essential option for customers. Subscription pricing is a transition for Veeam, partners and customers; however, a transformation that had to occur, and one that will set up the base for the future.
Overall Veeam is a very successful organisation and has significantly optimised customer outcomes with a significant Net Promoter Score in the 70s. It is increasing presence in the enterprise market, as well as having a play across most industry, geography and company size definitions. It is not without challenges, but most of the problems in perspective come from doing more and maximising outcomes rather than any significant deficiencies.
For example, there is considerable opportunity for it to be more active in the regulatory and compliance market to help manage risk for organisations. As it increases enterprise presence, and by a proxy relationship with the likes of Deloitte and PwC, compliance will be a distinct opportunity to meet. This type of opportunity further provides for deeper customer relationships and new roles beyond the infrastructure teams. Of course, this is critical for it to make the step to Act 2, and $2Billion in revenue and beyond.
Veeam is a remarkable case story. They have reached the US$1 billion mark in revenue. Success in any language. However, it knew that it had to evolve to the next act if it was to maintain growth, impact and of course, retain the skills. Act 2 is all about Hybrid Cloud. It is well placed to indeed be the lead provider in Data Management in Hybrid Cloud. It can be more than this if it executes on customer requirements, so expect there to be an Act 3 to reflect this once it conquers the current customer requirements.