Enterprise, Cloud Focus Driving Veeam India's Revenue Base

by Sohini Bagchi    Apr 26, 2017

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Veeam, a provider of backup and availability solutions is witnessing strong growth from India market, on the strength of enterprise and cloud sales. In a recent interaction with CXOToday, Ashok Acharya, Regional Director- India and SAARC at Veeam, says, “CXOs are aligning their business for digital transformation and this is driving strong demand for availability solutions. Veeam is committed to enable Always-On enterprise and our growth in the first quarter is a testimony of our focus on enterprise and cloud business.

Globally, the company reported 33 percent YoY increase in total bookings revenues last quarter while Enterprise new license bookings grew 17 percent annually. The company’s India business witnessed 63 percent total booking revenues during the same period, primarily driven by explosive gains in Enterprise and Cloud revenues.

While explaining some of the trends and challenges in the digital and cloud space in India, Acharya maintains that continued growth in the coming quarters from the India, fueled by new product releases, partner growth and enterprise sales of cloud solutions.

CXOToday: Do you think Cloud-first strategy is becoming more a necessity for survival, rather than a strategy for competitive advantage?

Ultimately when it comes to cloud deployments, if you aren’t ahead, you’re already behind. If companies don’t yet have a clear cloud strategy then they certainly should. IDC has predicted that by 2019, most organisations will need to have completed a shift to a mainly cloud-based IT environment, while research from 451 Research shows that public storage spend will double in two years as on-premise storage declines. This shows a clear appetite – and need – to invest properly in cloud infrastructure. You could argue that the companies who will gain the greatest competitive advantage from the cloud will be those with a hybrid approach – benefitting from the lower cost points and flexibility of public cloud, while leveraging the security and proximity of private cloud. What is equally vital is that the information, data and applications that span the hybrid cloud are fully available. There’s a big pressure to ensure a constant experience across multiple environments. That’s where we come in.

CXOToday: Cloud was until recently the differentiator for many enterprises. If this becomes a survival issue, how can enterprises that have already adopted cloud differentiate from competitors? What’s next for them in digital transformation?

Digital transformation is seen as a big investment, but is becoming a requisite for survival in the current and future landscape. The modern enterprise needs to be anchored with key technologies provided by virtualisation, modern storage systems and cloud technologies in order to be fully transformative. But this transformation puts strain on the availability of data and information as it involves updating legacy systems and investing time and money. What is critical is that availability is at the forefront of the digital transformation strategy, so that when applications and workloads are being moved across different infrastructures, there’s a backup and disaster recovery plan in place to ensure that downtime is not an issue. Success in digital transformation will ultimately be reliant on data and application availability in the hybrid cloud.

CXOToday: Are enterprises adopting cloud doing it the right way?

The need to deliver 24/7 access to data and applications has never been more important. The exponential growth that we are going to see in data from connected devices and increased mobility will contribute to greater strain on legacy IT systems. Our research has indicated that more than two-thirds of enterprise respondents have invested heavily in data center modernisation specifically to increase availability levels. It’s not simply about adopting cloud as a whole, but investing in the right areas. Not enough enterprises are yet leveraging the lower cost and flexibility benefits of the public cloud, and there’s still an assumption that data must be kept on-premise due to perceived security issues. Enterprises must go beyond simple application testing in the public cloud environment. It’s our job to make the transition to a hybrid cloud model seamless.

CXOToday: Is there a formula to get the right mix within a hybrid cloud strategy? What are the business considerations regarding this cloud environment?

It’s about using hybrid cloud in a way that benefits the individual organisation, and its workloads. For example, a university may choose to move some of its workloads to the public cloud – to benefit from its scale and responsiveness – at particularly busy times during the year around A Level results and clearing as it knows it will be dealing with a vast influx of data that an on-premise setup may not handle. But examples like this – of deploying a hybrid cloud model to leverage the respective merits of public and private infrastructures to suit specific businesses – is still too rare.

CXOToday: Veeam’s latest announcement refers to workload mobility. Are enterprises doing this right? What are the challenges with workload mobility?

Our Veeam Availability Platform announcement refers to workload mobility in the sense of making workloads available across any cloud or location, to maximise IT investments and increase flexibility. The biggest challenge for enterprises is knowing what to put – information, applications and data – and where to put it – be it public cloud, private cloud or both. Our job is to ensure maximum uptime of workloads, regardless of where they sit.

Also, we innovate based on the needs of our customers. Veeam undergoes detailed research through customer councils and engagement with stakeholders in the market. This helps us understand the current and future pressure points being faced by our end users, and informs the process of developing software and features that help them solve challenges. The Veeam Availability Platform is the culmination of this process.

CXOToday: Are enterprises finally waking up to the need for right backup and DR strategy? Why are we talking about this for so long and yet so many still admit to fail here? 

Enterprises understand the need for comprehensive availability solutions, but some will admit they are still behind the curve. Our report shows that 84 percent of senior IT decisions-makers across the globe admit to suffering an ‘Availability Gap’, which is essentially the difference between what their IT setup can deliver and what their users are demanding. What’s more this gap is proving to be very expensive due to the number of downtime incidents taking place due to a poor availability strategy. It costs up to $16 million a year in lost revenue and productivity, in addition to the negative impact on customer confidence and brand integrity. While Boards are squeezing budgets and expecting more from their IT deployments, they need to ensure the Always-On mindset provides the foundations.

CXOToday: Do you see a big difference in Veeam’s business in terms of growth and profitability with a strong focus on enterprise and cloud segment? What plans do you have in the next one year?

Veeam sells backup and replication software products to back up, restore and replicate data on virtual appliances. It was among one of the first vendors to develop backup software tailored for virtual machines (VMs). Veeam started out mainly as an SMB and commercial product, but began focusing on enterprise customers in recent years, which in turn has expanded the Veeam revenue and customer base.

Veeam also has a reseller partnership with Hewlett Packard Enterprise (HPE), with Veeam technology integrated directly into HPE primary and secondary storage. During the quarter, the company witnessed strong growth momentum in enterprise market and it now counts 74 percent of the Fortune 500 and 56 percent of the Global 2000 as customers. Additionally, with 100 percent commitment to channel partners, Veeam has 47,000 Veeam ProPartners and 15000 Veeam Cloud Service Providers (VCSPs) globally. The company also highlighted that it has maintained successful track record of new customers acquisition, by adding 12,000 total paid customer in Q1 2017 to reach 2,42,000 customer worldwide.