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Veeam revenue benefits from more $1 million deals

Veeam Software today reported a a 27% year-over-year increase in revenue growth for total bookings and 53% year-over-year growth for deals that are more than $100,000 during the second quarter of this year, fueled by larger customers and cloud backup.

The Veeam revenue spike came from adding 13,000 new customers last quarter and finished June with 255,000 customers worldwide. Veeam claims it is adding an average of 4,000 new customers each month.

“We are continuing to see growth in total customers,” CEO Peter McKay said. “All the markets are growing (but) for us the enterprise market is the one that is growing the fastest for us. Two years ago, we expanded our market into the enterprise. That is something we have paid a lot of attention to.

“The deals are quite big. We have done more million-dollar deals this year than we did all of last year.”

A privately held company, Veeam does not disclose a specific breakdown of its figures every quarter but last January it reported numbers for the overall 2016 year. Veeam hit $607.4 million in bookings in 2016, which included new license sales and maintenance revenue, compared to $474 million in 2015.

At the VeeamON user in conference in May, McKay put the Veeam revenue goals at $1 billion by 2018 and $1.5 billion by 2020.

Veeam started out in 2006 as virtual machine backup, and now focuses on the cloud. McKay said it is finally seeing enterprises move their data protection to the cloud after a long reluctance to do so.

“Ten or 15 years ago, any opportunity was about virtualization,” McKay said. “Today, it’s about having the ability to move applications to the cloud. It’s definitely a hybrid cloud story (for enterprise customers). They want to be able to move applications to the cloud when they are ready. It’s more of a cloud readiness thing that we are seeing. They want to go at their own pace.”

The bulk of Veeam’s growth last quarter came from its flagship Availability Suite. The suite handles backup, restores and replication through Veeam Backup and Replication along with monitoring, reporting and capacity planning in Veeam ONE for VMware vSphere and Microsoft Hyper-V deployments.

The company also reported the Veeam Cloud and Service Provider VCSP program, which offers Disaster Recovery as a Service (DRaaS) and Backup as a Service (BaaS), generated 79% year-over-year growth in 2016.  License booking grew 57% annually from the enterprise level customers.

This last quarter marked the first full quarter of Veeam’s HPE partnership. Veeam Software is integrated with HPE 3PAR StoreServ, HPE StoreVirtual and HPE StoreOnce for data and application availability and monitoring.

Veeam last month also said it would add support for Nutanix AHV, a KVM-based hypervisor, in the Veeam Availability Suite later in 2017. The company also has strategic relationships with Pure Storage, integrating Veeam Backup and Replication with Pure’s snapshots. Also, Veeam provides backup for the IBM Bluemix cloud computing platform.

In May, the vendor added Veeam Availability for Amazon Web Services (AWS) for enterprises who want to move multi-cloud or hybrid cloud environments via an agentless backup and recovery of AWS instances. This solution works with N2W Software’s Cloud Protection Manager so enterprises can copy data from AWS to a Veeam-hosted repository for backups and cross-platform disaster recovery.

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