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Cloud holds silver lining for Commvault

Commvault’s push to store customer data in the cloud is paying off.

CEO Bob Hammer said the amount of data stored in the cloud with Commvault software has more than doubled since the start of 2016. That helped the data protection and management software vendor to better revenue growth than expected last quarter.

Commvault Tuesday reported revenue of $159.3 million last quarter, a 13% increase over the previous year. Its software revenue of $70.5 million increased 22% year-over-year. Overall and software revenue both beat analysts’ expectations.

Commvault lost $800,00 in the quarter, down from $4.6 million a year ago. Hammer said he expects continued growth of the cloud and other standalone products will accelerate revenue increases over the next few quarters, and that should lead to consistent profits.

Commvault addresses the cloud with standalone products such as its Edge Drive file sharing product, cloud replication and DR packages and through partnerships with Microsoft and Amazon. The Edge Drive is part of the standalone applications that can plug into the Commvault Data Platform, along with apps for virtual machine backup, end point protection, archiving and others data management use cases.

Moving customer data to the cloud was a focus on the Commvault Go user conference this month.

“This represents a significant driver of our software growth,” Hammer said of the cloud during Commvault’s earnings call. “I can tell you the cloud is a significant, material part of our revenue and of our revenue growth.

Commvault said revenue from enterprise deals (more than $100,000) increased 44% from last year and made up 57% of its revenue in the quarter. The number of enterprise deals increased 45% from last year, averaging $268,000 per deal.

“At the 100,000-foot level, the major driver of our business is large enterprises as they move to the cloud,” Hammer said. “We’re helping them manage data from on-premise to the cloud, manage data in the cloud and then help them manage data in these hybrid environments.”

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I work for a company that provides technology services to hospitals and other healthcare providers, and this doesn't surprise me in the slightest. Typically when a hospital needs a EMR product or other technology product, they don't have the resources to just go develop a system in-house. They will probably have an ongoing relationship with a 3rd party that they purchase the product(s) from, and that becomes very costly. 
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