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Veeam’s enterprise focus reaping rewards

Cloud and enterprise push sees availability software specialist engaging with channel heavyweights

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Last year Veaam Software announced it was widening its customer base by aggressively targeting enterprise-sized companies – a move that appears to be paying off, with the firm now garnering the attention of some major channel players.

It marked a shift in the data availability and Disaster Recovery as a Service (DRaaS) solution specialist’s strategy; it not only re-directed its focus onto the enterprise, but started making greater inroads in the cloud, all with the goal of becoming a one billion-dollar revenue company by 2019.

By the end of 2016, Veeam counted 73% of the Fortune 500 and 56% of the Global 2000 as customers, with the number of new enterprise customers growing by 48.6% to 761. It also reported 79% YoY growth across its cloud business.

Speaking at the vendor’s annual customer and partner event, VeeamON, this week, Veeam CEO Peter McKay said the company has added 4000 new enterprise customers each month for the last six quarters.

The event highlighted the company’s growth in enterprise and cloud – not least as it showcased a product portfolio expanded to now addresses not just virtual, but physical and cloud environments. As a result, Veeam VP Richard Agnew says the vendor is now appealing more frequently to the likes of Computacenter, SCC and other large system integrators (SIs), which certainly wouldn’t have been the case previously.

“Like all big partners, they like to have a tick box of what products fit what solution,” he tells Microscope. “A couple of years ago we were probably sitting in a little niche – if you had a relatively small, virtualised-only environment.

“Now they are looking at us because we’ve now got physical, we’re infinitely more scalable, we’ve got the links to the cloud, we’ve now announced the Continuous Data Protection (CDP), so now they think we’re a major player. We have the opportunity to get into significant bids, that’s starting to happen. We are being seen [by big SIs] as much more mainstream. We have the functionality around the things customers are looking for,” he says.

Veeam highlighted several new products targeted at enterprise customers, including the Veeam Availability Platform for the Hybrid Cloud, which it says enables its channel partners to sell a greater number of business continuity and availability services.

The firm also renewed its commitment to cloud with a host additions to its Availability Platform: the Veeam Availability Console and Veeam Agents; Veeam CDP and vCloud Director Integration for Disaster Recovery as a Service (DRaaS); Tape as a Service, and new multi-tenancy, multi-repository and automation capabilities in Veeam Backup for Microsoft Office 365.

It also stressed its partnership with Microsoft, with services such as Direct Restore to Microsoft Azure, where organisations can take on-premise workloads and restore or migrate them to Azure using automated conversion capabilities.

As part of this move to cloud, the company is also actively encouraging its partner base to adopt more service-based competencies. “That’s an obvious place for partners to make more margin, and be stickier with the customer,” says Agnew.

He highlighted Veeam’s new professional services-focused initiative, the Veeam Accredited Service Partner (VASP) programme, which features increased marketing and technical services for partners delivering professional services around Veeam’s availability portfolio.

“Our market reach expands exponentially as our partners receive referrals directly from the source, and our ability to engage with them and support their teams increases as their customer base grows as a result of reselling our solutions,” comments Matthew Chesterton, CEO of Veeam partner, OffsiteDataSync.

“Generally, it’s a transformation project,” says Agnew. “It’s a storage refresh which triggers a server refresh, and maybe they’re looking into hyperconverged, or the journey to the cloud, so the big guys like ComputaCenter and SCC have practices built around that, and they have the ability to pull us in and offer solutions to migrate more data to the cloud.”

Veeam’s recent 2017 Veeam Availability Report, which surveyed 1,000 senior IT leaders, report 96% of organisations have Digital Transformation initiatives on their roadmap and more than half of those initiatives are in process now.

The report also claims 82 percent of enterprises admit to suffering from what it describes as an ‘Availability Gap’ – the gap between users’ demand for uninterrupted access to services and what IT can deliver. It says this is impacting the bottom line to the tune of $21.8m per year.

As such, the firm is pushing the opportunity for the channel around cloud-based DRaaS; it cites figures from IDC that reports that over the next three years, 67 percent of enterprise IT infrastructure and software will be focused on the cloud. It says cloud based DRaaS will “be essential to meet availability and compliance requirements in the modern cloud era.”

It adds that Gartner estimates the DRaaS market will nearly triple within the next two years, hitting $3.4bn by 2019.

Veeam has around 2,500 registered, silver and gold partners in the UK. The company isn’t embarking on partner acquisition any time soon, however. Agnew says instead of focusing on recruitment, the firm wants to do more with its gold partners, “to get them doing much more repeatable business with us.”

Agnew believes Veeam’s enterprise and cloud outlook will mean more big deals in the vendor’s future. He describes the firm as now being a “big international player”, going up against the likes of IBM and Veritas in enterprise deals. With Veeam growing at around 30%  per year, and the backup and recovery market growing at four percent in the UK, “by default, we have to be taking market share,” says Agnew.

With this focus, it appears Veeam is on course to hit its billion-dollar target by 2019.

This was last published in May 2017

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