Veeam Software continued impressive growth last quarter, increasing bookings revenue 38% over last year in a market that is barely growing one percent.
Veeam Software remains a private company, but provides quarterly updates on its earnings. In the second quarter, Veeam said its growth outpaced its first quarter of 2016 when it grew 24% and its 22% growth (to $474 million) for 2015. The backup and recovery vendor counts 70% of the Fortune 500 as customers, and passed 200,000 paid customers last quarter. The Hard Rock Hotel & Casino in Las Vegas was Veeam’s 200,000th customer.
Veeam has been selling backup software for 10 years, beginning as a virtual machine data protection specialist. Over the past few years, Veeam has also concentrated on rapid recovery and disaster recovery.
“We’ve created a new market called the availability market,” said Doug Hazelman, Veeam’s VP of product strategy. “We talk about availability and 15-minute recovery of any application and all data.”
“If they start to look at other options and Veeam pops up, it’s a great opportunity to us to say ‘Here’s a better way to do things,’” he said. “They know it will take a massive re-architecture with their existing backup, so they’re ready to look at a new approach.”
Veeam claims it now protects 11.8 million VMs and has 41,000 channel partners, many of them cloud service providers. The vendor said Microsoft Hyper-V license bookings grew 49% year-over-year last quarter, although Hazelman said a clear majority of customers still use VMware hypervisors.
The data protection and recovery software market grew 0.9 percent for 2015, according to IDC. Veeam is looking to take advantage of transition periods that large rivals are going through. Veritas split off from Symantec earlier this year and EMC is going through a merger with Dell.
Veeam is also going through a leadership transition. Founder Ratmir Timashev stepped down as CEO last month and was replaced by Veeam veteran William Largent. Veeam also brought in former VMware executive Peter McKay as president and COO.