Veeam posts 40% growth in virtual machine backup product revenues

Virtual machine backup software maker Veeam records 40% year-on-year increase in booked licence revenues in 2014

Virtual machine backup software supplier Veeam has posted 40% year-on-year growth and booked revenues of $389m in its annual results for 2014. The fourth quarter of 2014 is the 28th consecutive one in which Veeam’s total bookings revenue has experienced double-digit percentage growth.

Veeam, which is now at version 8 of its Backup & Replication product, provides software to back up virtual machines (VMs) and works with the two most prevalent virtualisation hypervisors, VMware and Microsoft Hyper-V. 

It provides backup and replication with the ability to orchestrate failover between sites. It includes use of cloud storage services as a backup target and WAN acceleration to speed movement of data.

With the introduction of Veeam Endpoint Backup last year, the company dipped its toes into the physical server backup market, although at this stage the product has limited scalability.

In its 2014 results, Veeam now claims more than 135,000 customers worldwide, with 4,000 being added each month. It says product licence bookings for Microsoft Hyper-V doubled over the course of the year.

Veeam has undergone a rapid rise in its fortunes. When virtualisation swept datacentres, many backed up their data using existing traditional backup products, using an agent in every physical server. This method has inherent limitations, due to bottlenecks in data movement it causes, so specialist virtual machine backup suppliers, such as Veeam, began to offer products that worked at hypervisor and VM level.

Then the major backup software makers – Symantec, IBM, EMC, HP and CommVault – began to add virtual machine backup to their existing physical server backup expertise.

Remarkably, Veeam rose through this competition to achieve number two customer choice of backup software product in last year’s TechTarget European Purchasing Intentions survey.

In the survey, Symantec was recorded as the most popular backup product among the 511 storage professionals questioned, with 20% saying they had deployed it. Veeam came next with 19%, followed by HP (15%), EMC’s NetWorker and Avamar products (13%), IBM Tivoli Storage Manager (TSM) (12%), then CommVault, CA and Microsoft, all with 6% of respondents.

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