Home Strategy Veeam gears up for growth

Veeam gears up for growth

Privately held companies tend to be secretive about how they are performing. But Veeam co-chief executive Peter McKay revealed some of the company's 2016 figures and targets for the coming years at the annual VeeamOn conference held in New Orleans this week.

Veeam, which has been self-funded since it was formed a decade ago and has no debt, racked up US$607 million in bookings in 2016, representing 28% year-on-year growth. It has been profitable for eight years, and during that period its revenues have seen compound annual growth of 36%. "We are the leader in the market," said McKay.

The company is currently attracting around 4000 net new customers a month (100 in Australia and New Zealand), with an 87% renewal rate.

That high level of renewals reflects Veeam's Net Promoter Score: at 73, it's more than twice the industry average (32), and well ahead of VMware (45), Cisco (38) and Intel (35). McKay revealed his remuneration was partly determined by the company's NPS, so he is presumably motivated to maintain or improve that score.

Veeam is spending US$126 million — 20% of its revenue — on marketing this year, and plans to hire 800 people during the coming 12 months. McKay believes Veeam has a window of opportunity to take a large chunk of the US$3 billion contestable business from Commvault, Dell EMC, Veritas and other vendors. "[Our] competitors are all struggling," he told the company's partners at VeeamON 2017, so "we need to make hay while the sun shines."

Veeam's goal is to achieve US$1 billion revenue by 2018, and US$1.5 billion by 2020.

The company sells exclusively through channels, so McKay called on Veeam's partners to focus on all markets from enterprise to SMB.

Disclosure: The writer attended VeeamOn 2017 as a guest of the company.

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Stephen Withers

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Stephen Withers is one of Australia¹s most experienced IT journalists, having begun his career in the days of 8-bit 'microcomputers'. He covers the gamut from gadgets to enterprise systems. In previous lives he has been an academic, a systems programmer, an IT support manager, and an online services manager. Stephen holds an honours degree in Management Sciences and a PhD in Industrial and Business Studies.