Veeam takes a disciplined path to top of the data protection market

Veeam takes a disciplined path to top of the data protection market

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Attendees expecting VeeamON 2022 to be focused only on backup software would have been surprised by the breadth of topics covered during the conference, which recently took place in Las Vegas.

“They hit virtualization, cloud, containers, ransomware. [They’re] catching waves effectively … not in an artificial buzzword-driven way, but in a legitimate, disciplined business-growth approach,” said David Nicholson (pictured, right), theCUBE industry analyst.

During theCUBE’s final analysis of the VeeamON event, in an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio, Nicholson and Dave Vellante (pictured, left) gave their expert insights of breaking news from the event, including why Veeam Software Corp. has such a powerful market presence. (* Disclosure below.)

Is Veeam REALLY about to overtake Dell?

Veeam is a classic example of well-disciplined growth. Rather than following the latest hype and acquiring adjacent “sexy” businesses that divert them from core goals, the company has kept its vision on its backup and replication portfolio and branched out logically, according to Nicholson.

The announcement by IDC Corp. that Veeam is in a dead heat with Dell Technologies Inc. for data protection market share came as “no surprise,” according to Vellante.

“Veeam’s got 30% EBITDA [earnings before interest, taxes, depreciation, and amortization], and has had it for a while. So they caught lightning in a bottle years ago, and now they’ve got the inside capital behind them,” he stated.

Dell is technically still in the lead, with a 12% market share to Veaam’s 11.7%, but the companies’ vendor revenue figures are within 0.5% of each other, which is considered a statistical tie. Veeam’s going to “blow by that” unless Dell gets its data protection act together, according to Vellante.

“They’re growing at 20%+ each year, and I can almost guarantee Dell’s data protection business isn’t,” he stated.

Another reason to predict continued growth for the company comes from the ambitious goals of incoming Veeam Chief Executive Officer Anand Eswaran, who spoke with theCUBE during VeeamON. He told theCUBE that he wanted to leap-frog revenue share up to 25% to 40% and become an “outside number one,” Vellante recalled.

Veeam’s competitive attitude is going to vitalize the entire data protection market, Nicholson added.

“I think it’ll be healthy for the industry at large,” he said. “As Veeam continues to take market share, there’s definitely going to be pushback from others in the field.”

Here’s the complete video interview, part of SiliconANGLE’s and theCUBE’s coverage of the VeeamON event:

(* Disclosure: TheCUBE is a paid media partner for the VeeamON event. Neither Veeam Software Corp., the sponsor for theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE

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