Veeam continues to grow as demand for Modern Data Protection increases from businesses

Veeam Software reported results for its fiscal year 2020. Veeam kicked off 2020 with the completion of its acquisition by Insight Partners, which was announced on Jan. 9 at a valuation of $5 billion, setting the pace for a year of substantial growth and expanded success across all market segments, culminating with Veeam’s acquisition of Kasten, the market leader for Kubernetes Backup and Disaster Recovery (DR), in Q4’20.

“Even with the unforeseen challenges and circumstances that began in early 2020, Veeam continued its rapid growth with its second consecutive year of bookings over $1 billion and a 22% year-over-year (YoY) increase in annual recurring revenue (ARR),” said William H. Largent, chairman and CEO at Veeam.

"2020 was a defining moment for data protection and management. More than ever, we are seeing our customers looking for reliability and ease of use in their Cloud Data Management solutions, and in Q4, APJ demonstrated another quarter of double-digit growth with an annual recurring revenue (ARR) increase of 24 percent year-over-year (YoY). This is a testament to our ongoing commitment to our customers and partners, enabling them to unleash the power of digital and data mobility," said Shiva Pillay, Vice President, Sales and Field Operations, Asia Pacific and Japan.

"APJ is growing around 10 times the market average and the exceptional growth would not be possible without the support of our customers and partners. We welcomed over 400,000+ customers globally, including APJ customers such as Kintetsu in Japan and Gammon Construction and Jebsen in Hong Kong last quarter. As a 100% channel organization, we would not have been able to garner these results without the constant support and hard work with our partners - over 1700 transacting partners in Q4. We continue to focus and invest in our relationships with existing and potential partners, which has been well received and backed with strong results. In Q4, we had investment of 200 partners to undertake the highest level of accreditation which gives them to the ability to design, build and deploy Veeam Solutions which in turn supports this customer growth. This year, businesses will be put to the test in achieving business growth while keeping up with the rapid pace of innovation and digital transformation. Veeam's priorities remain clear and focused on helping our customers and partners build the best data protection platform for virtual and modern data infrastructures, and at the same time, protect workloads on-premises and across multi-cloud environments. We continue to execute well and plan to continue our growth momentum in APJ, backing that up with hiring across all functions to support our customer and partners.”

During 2020, Veeam’s vision for hybrid cloud drove the company to continued growth, surpassing 400,000 customers. Specifically, Veeam Backup for Microsoft Office 365, Veeam’s fastest growing product for the past two years, reported 73% growth YoY. Veeam Backup for Microsoft Office 365 has now been downloaded by more than 154,000 organizations, representing over 15 million user mailboxes. Version 5, released in December 2020, adds purpose-built backup and recovery for Microsoft Teams, making it easier than ever for users to quickly find and restore Teams data, including entire groups, specific channels and settings. Protecting this data is more critical than ever, as the shift to remote working has created an explosion in Microsoft Teams adoption over the past year, with 115 million daily active users last month, up 475% from 20 million daily active users almost 12 months ago.

Q4 & 2020 Customer, Product and Partner Highlights

· Veeam was positioned by Gartner, Inc. in the Leaders quadrant of the 2020 Magic Quadrant for Data Center Backup and Recovery Solutions[ii]. Not only does this mark the fourth time Gartner has recognized Veeam as a category Leader, but it is the first time Veeam is positioned highest overall in ability to execute. Veeam was also the only vendor to move higher in both ability to execute and in the completeness of vision categories.

· Further proof of Veeam’s growth trajectory was displayed in the most recent IDC Semi-Annual Software Tracker for Data Replication & Protection 1H’20[iii] which showed that Veeam has delivered the fastest revenue growth year-over-year in 1H’20, among the top five vendors, the combined revenues of non-top 5 vendors and overall market average. Veeam’s YoY growth in the first half of 2020 was more than 8 percentage points above the market average.

· Veeam announced 16 major releases (25+ including updates) in 2020, with hundreds of new capabilities. This includes Veeam Backup & Replication v10, Veeam ONE™ v10, Veeam Backup for Nutanix AHV v2, Veeam Service Provider Console v4, Veeam Backup for Microsoft Azure v1, Veeam Availability Orchestrator v3, Veeam Backup for Microsoft Office 365 v5 and Veeam Backup for AWS v3.

· With more than 650,000 unique downloads of Veeam Backup & Replication v10 since general release in late February 2020, the product averages more than one download per minute, a testament to the product’s simplicity, flexibility and reliability. With more than 150 new features and enhancements, including powerful NAS support, multi-VM Instant VM Recovery® and heightened ransomware protection, v10 includes data protection capabilities that increase availability, portability, and extensibility for Cloud Data Management.

· Veeam continues to release new features and enhancements ideal for enterprise environments, which has resulted in +250% growth YoY in large-deal transactions.

· Veeam now counts 82% of the Fortune 500 and 69% of the Global 2000 as customers. Key customers include Airbus Defence & Space, Alpha Bank, Avnet, Broward County Schools (FL), Dassault Aviation, Datev, Deloitte, Engie, Hero MotoCorp, Hertz, IBM Cloud, Pernod Ricard, Penske Australia and New Zealand, Puma, Quinnipiac University, Rabobank, Royal Dutch Shell, Siemens and Wenatchee Valley College.

· Veeam Universal License (VUL), the industry’s first portable license that enables IT agility and workload mobility for multi and hybrid cloud enterprises, accounted for 56% growth YoY.

Veeam’s technology alliance resell agreements with Hewlett Packard Enterprise (HPE), Cisco, NetApp, and Lenovo reported 16% YoY growth.