With the results from last year’s sales tallied, Veeam reported a 22 percent revenue increase over the previous fiscal year, as well as a 34 percent year-over-year growth in enterprise orders, according to the announcement. The company’s so-called “record” sales year is being chalked up to a steady uptick in the demand for Veeam’s cloud-based availability solutions, said Ratmir Timashev, Veeam’s CEO.
"It's clear from our 2015 results that Veeam has become the standard in the availability market and that enterprise demand for Veeam Availability solutions continues to accelerate rapidly," said Timashev in a statement. "Our results are in stark contrast with the declining revenue performance of the largest legacy backup competitors."
While Veeam’s overall revenue growth is interesting, what’s most striking is the company’s success in the enterprise market during FY15. Timashev cited the recent launch of Veeam Availability Suite v9 as the impetus for the company’s success among business users, and the numbers seem to back this up; Veeam reported 94 percent year over year revenue growth for Veeam Availability Suite Enterprise Plus edition, as well as 54 percent year over year revenue growth among all available editions of the Veeam Availability Suite.
Veeam also cited the growth of its cloud sales business as a driving factor in last year’s success, particularly surrounding increased demand for Disaster Recovery as a Service solutions. Additionally, the Veeam Cloud and Service provider program reported a 75 percent increase in transactions year-over-year, with the total number of service and cloud providers enrolled worldwide exceeding 10,000 members.
Going forward, Timashev said Veeam plans to surpass the half-billion dollar revenue mark later this year as the company pushes to meet a projected $1 billion annual revenue goal by 2018. The company was founded in 2007 and currently has a much higher growth rate than other companies in the industry. IDC Research Director Phil Goodwin said Veeam’s 22 percent growth rate in 2015 is nearly 16 percent higher than the 6.3 percent CAGR that IDC expects through 2019.
It would be foolish to equate Veeam’s success in selling availability and DRaaS as an overall indication of the health of the cloud services industry, but other recent reports seem to confirm an increased demand among businesses for cloud services.
Last week, Cloud Security Alliance released a study that found the increase in positive perception toward cloud adoption could suggest a widespread change in public opinion regarding the safety and reliability of the cloud services market as a whole. However, lingering doubts about the reliability of cloud security are bound to weaken market interest among late adopters and businesses that still rely on legacy solutions.
Did your company have a particularly successful year selling cloud services? Sound off in the comments or message Michael Cusanelli on Twitter @MCusanelliSB to keep the conversation going.