27% Growth in 2021 for Veeam

Veeam Software Corp. announced another quarter of double-digit growth with an annual recurring revenue (ARR) increase of 27% Y/Y, signifying 2021 as the company’s most successful year on record.

It closed 2021 as the #2 data protection vendor worldwide (i), ranked as a leader for the 5th consecutive time in the 2021 Magic Quadrant for Enterprise Backup and Recovery Solutions(ii), saw its Microsoft Office 365 business grow faster than expected with 73% Y/Y growth and achieved over 36% Y/Y growth of Veeam Availability Suite.

“IDC expects the total Data Protection as a Service (DPaaS) market to reach $18.4 billion in spending by 2025 (iii),” said Anand Eswaran, CEO. “Given the current global landscape and the fact that businesses now have more data than ever to protect – from ransomware and cyberattacks, compliance and new regulations, and the complexities of remote working environments – I believe that the market opportunity is even larger than what is being predicted. Veeam is outpacing the overall market maturation, growing at a much more rapid rate, and is firmly at the epicenter of the data ecosystem. This is a testament to our employees and company culture, the pace of development and innovation, and our collaboration with partners to deliver solutions that exceed customer expectations and build trust.”

2021 highlights
• Eswaran was appointed as CEO and a member of the company’s board of directors. William (Bill) H. Largent stepped down as CEO to focus on his role as COB of directors. Eswaran joined Veeam from RingCentral, where he was president and COO, overseeing exponential growth and customer expansion.
• Veeam cloud-native data protection reported more than 420% growth Y/Y. New releases of Backup for AWS v4, Backup for Microsoft Azure v3 and Backup for Google Cloud v2 are now integrated directly into Backup & Replication v11a with 100% functionality for Veeam Universal License (VUL) license holders.
• Storage in the cloud is driving massive growth. The firm moved more than 500PB of data to public cloud storage in 2021, which accounts for 135% growth Y/Y. Its single platform for Modern Data Protection – simple, flexible, reliable and powerful – continues to be a standard and provides high level of value to customers.
• More than 450,000 users have downloaded Backup & Replication v11 since its launch in 1Q21. Released as an advanced data protection solution for cloud, virtual, physical, NAS and enterprise applications, v11 now enables organizations to accelerate cloud adoption of AWS, Azure and Google by ensuring data is reliably secured, protected and managed from a single console.
• Backup for Microsoft Office 365 reported 73% ARR growth Y/Y for 2021. The #1 backup and recovery solution for Microsoft 365 enables users to securely backup to any location, including on premises, in a hyperscale cloud or with a service provider. With 8.5 million users now relying on the vendor to protect their Office 365 data, v6 will be released in early 2022.
• Ransomware protection capabilities in Backup & Replication, ONE and DR Orchestrator (which reported 204% Y/Y growth) continue to provide customers with fast, reliable recovery options from cyberattacks, with various immutable storage options on premises and in the cloud.
• The company counts 81% of the Fortune 500 and 70% of the Global 2000 as customers. New 4Q21 advocates include: Johnson Matthey, Telefónica Uruguay, TUI Group, Yamaha Brazil, Anglicare Southern Queensland, BIOCAD, Brunel International N. V, Calan and Associés Sp. z.o.o., City of Victoria, Clough Group, Franprix, Kern County, Lancaster University, Leumit Health Services, Lindsay Australia, PKO Ubezpieczenia and Transdev.

“Due to the amazing growth trajectory of Veeam, the company provided laser focus on further enhancing our internal cybersecurity capabilities, with an emphasis on our cyber resiliency and enriching the security-first mindset that our customers have come to expect from us. Our ISO-certified Information Security Management System (ISMS) was enriched with a user-centric security engagement model, proactive threat intelligence and further engagement with the external information security community,” said Gil Vega, CISO, Veeam.

“Customer demand for solutions that provide protection and backup of data regardless of where its hosted, whether core, cloud or edge has been increasing as application deployments also increase. During 2021, Veeam sought to respond to this demand by enhancing its Microsoft Office 365 backup, Veeam Backup & Replication v11 and v11a products. The company was able to increase its share of the data replication and protection software market in 1H 2021, taking the top market share position in EMEA and LATAM and number two globally, according to our 1H21storage software tracker. Veeam is also looking to expand its data protection in SaaS applications with its upcoming support for SalesForce.com data,” said Phil Goodwin, research VP, IDC.

“Before we began our digital transformation, we chose Veeam to support new business demands related to hybrid-cloud computing, privacy and security. Veeam is very important to us, and we appreciate that it’s always evolving,” said Fernando Rostock, IT executive manager, Yamaha Brazil.

“At Clough Group, we like that Veeam is very agile, and we can choose any endpoint or environment we want. Even if we decide to switch cloud providers like Azure, AWS or Google, we can restore our backups to any environment, whether virtual or physical. Without being restricted to a specific product or environment, our DR plan is now more robust,” said Hussain Munir, security manager, Clough Group.

“Our goal was to consolidate data protection into one unified environment to protect the integrity of our government, and we achieved that goal with Veeam. It’s a good feeling knowing Veeam is our last line of defense in a disaster situation because it’s not a matter of whether a disaster will occur; it’s a matter of when,” said Mac Avancena, chief IT officer, Kern County.

“Ransomware is a constant battle, but Veeam gives us confidence we can protect data, so faculty and staff have uninterrupted access to the resources they need,” said Matthew Storey, systems technical coordinator, Lancaster University.

“Thanks to Veeam, we can now respond to a major event such as a ransomware attack by restoring data fast, which provides a huge boost to our service continuity. HA is one of the biggest promises that we make to our customers – and with Veeam, we can deliver,” said Jose Acuña, IT operations manager, Telefónica Uruguay.

(i) IDC Semi-Annual Software Tracker for Data Replication & Protection 1H21
(ii) Gartner, Magic Quadrant for Enterprise Backup and Recovery Solutions, Santhosh Rao, Nik Simpson, Michael Hoeck, Jerry Rozeman, July 19, 2021.
(iii) IDC Worldwide Data Protection as a Service Forecast, 2021-2025, August 2021, doc # US48097721.