Veeam Reports 22% Growth in 2020 in Annual Recurring Revenue

Veeam Software, Inc. reported results for its FY20.

It kicked off 2020 with the completion of its acquisition by Insight Partners, which was announced on January 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 DR in 4Q20.

“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% Y/Y increase in annual recurring revenue (ARR),” said William H. Largent, chairman and CEO.

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, its fastest growing product for the past 2 years, reported 73% growth Y/Y. It has 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 for users to 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 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.¹

“Insight Partners’ acquisition [of Veeam] at the beginning of the year definitely fueled a fire within Veeam right out of the gate,” said Danny Allan, CTO and SVP of product strategy, Veeam. “We then announced the availability of Veeam Availability Suite v10 which included 150+ new features and set the bar for the next gen of data protection. Despite the challenges that were then presented by the global pandemic to our employees, customers and partners, Veeam continued to focus on its vision and during the year launched 16 major releases to meet the new backup and protection demands of our customers. As we continue our Act II journey into the hybrid cloud and containers, we’re embracing and developing new technologies. I’m very excited about the upcoming announcement of version 11 of our flagship product, Backup & Replication later this quarter, which will further strengthen Veeam’s commitment to modernize our customers’ data protection practices.“

4Q20 and 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 Solutions². 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. The firm 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 1H20³ which showed that Veeam has delivered the fastest revenue growth Y/Y in 1H20, among the top 5 vendors, the combined revenue of non-top 5 vendors and overall market average. Vendor’s Y/Y growth in 1H20 was more than 8%e 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 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 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 for enterprise environments, which has resulted in +250% growth Y/Y in large-deal transactions.
• Veeam now counts 82% of the Fortune 500 and 69% of the Global 2000 as customers. Key customers include Airbus Defense & Space, Alpha Bank, Avnet, Inc., Broward County Schools (FL), Dassault Aviation, Datev, Deloitte, Engie, Hero MotoCorp, Hertz, IBM Cloud, Pernod Ricard, Penske Australia and New Zealand, Puma SE, Quinnipiac University, Rabobank, Royal Dutch Shell, Siemens AG and Wenatchee Valley College.
• Veeam Universal License (VUL), a portable license that enables IT agility and workload mobility for multi and hybrid cloud enterprises, accounted for 56% growth Y/Y.
• The vendor won more than 20 industry awards in 2020, including being named to the Forbes 2020 Cloud 100 for the fifth consecutive year. This list is the ranking of the top 100 private cloud companies in the world, published by Forbes in partnership with Bessemer Venture Partners and Salesforce Ventures.
• Veeam’s technology alliance resell agreements with Hewlett Packard Enterprise, Cisco, NetApp, and Lenovo reported 16% Y/Y growth.

“One of the many lessons learned in 2020 due to the COVID pandemic is that flexibility is key and the ability to adapt is necessary for companies to continue to exist and thrive. Organizations accelerated their use of cloud-based data protection in order to better support the unexpected surge in work-from-home employees. Veeam continued to grow despite the business climate adversities by prioritizing data protection and data management in the cloud. Veeam also made investments in important emerging areas, such as containers and Kubernetes data protection via the acquisition of Kasten,” said Phil Goodwin, research director, infrastructure systems, IDC.

“Veeam supports our banking operations and top business priorities – data protection, BC and DR, regulatory compliance and TCO – at the highest level with minimal effort,” said Efthymios Bekas, assistant manager, IT systems division, Alpha Bank.

“Our customers vary across industries, but they have one thing in common. They trust Avnet to help them turn their ideas into products, and we trust Veeam to protect the business intelligence that powers that process,” said Mark Wysolmierski, senior manager of systems administration, Avnet, Inc.

“Over a three-year period, we estimate a total savings of $2.3 million because of Veeam – an ROI of 352%. That’s only the beginning of the savings we anticipate delivering to the taxpayers of Broward County,” said Tamecka McKay, enterprise infrastructure services manager, Broward County Public Schools.

“Veeam helps us keep the lights on in hospitals and cities for public health and safety, confirm engines in military defense vehicles are operating at maximum capacity and keep trucks on the road so they can deliver freight to support the economy,” said Bobby Stojceski, technology and security manager, Penske Australia and New Zealand.

“Veeam is one of the most critical pieces of software in our IT environment because it keeps our core systems operational. It’s clearly the gold standard for modern data protection and a one-stop shop for BC,” said Fabiano Lacusso, associate director of systems, Quinnipiac University.

“I can say with 100% confidence that we have a reliable data protection system in place. If we’re attacked and compromised by ransomware, we’ll be able to recover all of our data and resume normal operations,” said Steve Garcia, information security officer, Wenatchee Valley College.

¹ Microsoft Teams at 3: Everything you need to connect with your teammates and be more productive, By Jared Spataro, corporate VP, Microsoft 365.
² Gartner, Magic Quadrant for Data Center Backup and Recovery Solutions, Santhosh Rao, Nik Simpson, Michael Hoeck 20 July 2020. Previous titled include Magic Quadrant for Data Center Backup and Recovery Software.
³ Source: IDC, Semi-Annual Software Tracker, 1H20; Note: Worldwide Data.