Increasing threats of cyber attacks have led to greater need for details defense — and a growth in the backup current market.
“If you’re in the backup and restoration house and you are not developing, you’re executing a thing incorrect,” reported Christophe Bertrand, senior analyst at Business Strategy Group (ESG).
To that position, several backup suppliers recently documented robust earnings for the past quarter and 12 months.
Kasten by Veeam revenue skyrocketed in 2021, with a 900% year-above-12 months boost in bookings by the Kubernetes backup, catastrophe restoration and migration service provider.
Veeam profits general also elevated. The information protection vendor, which obtained Kasten in September 2020, documented a 27% improve yr-in excess of-calendar year in annual recurring revenue for the fourth quarter of 2021.
And Commvault reported profits of $202.4 million for the last quarter of 2021, an boost of 8% yr-above-calendar year.
Kasten cashes in on container defense trend
2021 marked the very first complete 12 months that Kasten existed under the Veeam banner.
“They experienced a terrific merchandise but at the time [of the acquisition], no salesforce and no internet marketing,” claimed Andy Langsam, senior vice president of Kasten by Veeam. “It was obviously gross sales-constrained and not products-constrained.”
Kasten by Veeam launched two important updates to its K10 system in 2021, together with Kubernetes-indigenous security centered on ransomware attacks. Adoption of K10 increased by 10 occasions in 2021, according to Kasten. The business did not launch particular earnings figures in its January report.
Use of container orchestration platform Kubernetes has soared in current a long time. As a result, the need to have to adequately guard containerized workloads has intensified.
Christophe BertrandSenior analyst, Company System Group
“We see large expansion in Kubernetes,” Langsam claimed. “It’s type of like the VMware curve 15 many years back.”
Kasten by Veeam did not deliver particular customer figures, but explained it guards thousands and thousands of containers in manufacturing. Significant-functionality enterprises, together with banking and the economic sector, need to have container-unique info management, in accordance to Kasten.
Kasten by Veeam quadrupled the size of its employees in 2021. The company did not give an worker rely, but Langsam said it is continue to choosing in this kind of areas as product sales, marketing, product management, and research and growth.
Containers are poised to turn out to be the top platform for functioning production workloads, according to ESG analysis. The December 2020 report stated containers would shift forward of VMs and bare-metal servers in two years.
Containers have been a “incredibly critical technological know-how enabling digital transformation,” Bertrand said.
In accordance to that ESG report, 75% of respondents explained container-dependent apps can be backed up in the similar way as unique programs, which is incorrect.
“You have to have a backup tool designed for containers, intended for Kubernetes environments,” Bertrand stated. “That’s where by Kasten has appear in.”
Other suppliers that deliver container defense include things like Catalogic, Commvault, Portworx by Pure Storage, Trilio and Zerto, an HPE business.
Identical to the disconnect with SaaS apps, Kubernetes users need to have an understanding of that their workloads ought to be secured.
“Total, the current market demands a whole lot of education and learning continue to,” Bertrand explained. “It truly is acquiring much better, but we are not there still.”
Veeam income aided by cloud
The in general Veeam income figures mark the 16th consecutive quarter of double-digit advancement.
Specially, Veeam’s Backup for Microsoft Business office 365 organization grew 73% calendar year-in excess of-calendar year. The Veeam Availability Suite, which features Veeam Backup & Replication and the Veeam 1 IT monitoring tool, realized 36% year-around-calendar year expansion.
Version 11 of Veeam Backup & Replication, produced in February 2021, integrated constant data security. A lot more than 450,000 customers have downloaded it, in accordance to Veeam.
Veeam claimed moving additional than 500 PB of details to community cloud storage in 2021.
“All of the cloud figures exploded in 2021,” mentioned Veeam CTO Danny Allan.
For instance, Veeam cloud-native info security — which includes its backup for AWS, Microsoft Azure and Google Cloud — described more than 420% advancement yr-over-calendar year.
Veeam also improved leadership in 2021. William Largent stepped down as CEO but remained chairman of the board of directors. Anand Eswaran, former president and COO at RingCentral, grew to become CEO in December and set an ambitious $10 billion income target.
In 2022, Veeam will start its Backup for Salesforce item, which is in beta. Allan said there are three products focuses in 2022 — stability, cloud-dependent info protection and Kubernetes.
“We have to have to keep up the rate of innovation,” Allan stated.
Veeam does not split out precise revenue figures. As a private corporation, Veeam does not will need to report earnings. On the other hand, executives like Eswaran have been obvious in current a long time that they are discovering a potential IPO.
Veeam statements to have 400,000 prospects and 4,600 employees.
Commvault also capitalizes on cloud
Although the backup and recovery current market is on the upswing, Bertrand explained you will find a go toward broader smart information administration and employing that data for other needs.
“Organizations that overlook that pivot will possibly not be in organization in the future few years,” Bertrand stated.
Veeam and Commvault are between the sellers that offer a lot more than backup in their products, veering into overall information management with options these kinds of as orchestration and reporting.
In its quarterly earnings report for the final quarter of 2021, Commvault, a community firm, noted recurring earnings of $164.4 million. That determine tends to make up 81% of its overall revenue. Profits defeat expectations by $7.62 million.
Commvault CEO Sanjay Mirchandani pointed to the SaaS-based mostly Metallic platform as a single of the main motorists of expansion.
“As much more applications are born in or migrate to the cloud, it’s crystal clear that SaaS is the long term of the industry and for that subject, the long term of Commvault,” Mirchandani said on Commvault’s earnings phone on January 25.
The quantity of Metallic clients improved about 40% quarter-in excess of-quarter to almost 1,500, Mirchandani reported.
In addition, Commvault just lately obtained TrapX, an Israel-based mostly cybersecurity organization, and designs to integrate its technological innovation into the Metallic portfolio.
“We believe that this technological know-how and talent will broaden Metallic’s ransomware detection and avoidance capabilities and assistance buyers more decrease their ransomware risk,” Mirchandani stated.
Enterprise Tactic Group is a division of TechTarget.