>>VM is one of the more interesting stories we've covered in the past decade. Born in 2006 with a simple premise to make backing up virtualized systems easy, fast, consistent and cost effective. The company's timing was perfect as it rode the coattails of the virtualization trend with a laser focus on developing great products that just work. That's the tagline fast forward to 2021 and the team has surpassed the billion dollar mark in revenues and is transformed into a leading the, leading the number one independent pure play company for backup and data protection. Software company is expanding its tam extending from its on prem routes into cloud, cloud data backup containers and SAS data protection and with me to talk about its progress and how it thinks about the future of Bill Largent is the Ceo and chairman of VM and Jim Krueger. The CMO at the company. Gentlemen welcome, Great to see you again. >>Hey, great to see you again. Dave. >>Thank you, Dave, Great to be here. >>It's great, great introduction but I appreciate that set up >>following you guys for a long time but you know, you don't sit still so give us the business update. I mean you guys are cranking you just put out a press release on your progress. You're pretty transparent for a private company. We love that. But give us the update bill. >>Yeah, thanks very much. I'll do that really. We're pretty excited about the press release. We said Q one how we're 25% up air our growth, we've made a great transition with our team um super strong on our performance, our economic performance. We like being transparent were transparent with Clearly our owners now insight venture partners and that's been a big transaction that occurred in the last 15, 14 months. And we're we're transparent with our customers, our partners, our distributors, so and our vendors. So we're just that way we like to make sure we're good partners with all those along the line and we care quite a bit about him. So I think that transparency helps us with our customer base and where we're going with our product and what we've had to offer. We're now over 4500, employees strong around the globe. 40 plus countries operating uh, well, in all those jurisdictions with the covid being coming out of, I would say, coming out of hopefully coming out of the rough time period from from the geographical geopolitical covid issues. So we believe we've done extremely well through then businesses continued to grow for us. So we're really excited about where things are, insight has done a great job and helping us advance our business and thinking about looking at new tams to go after. And we're pretty excited about it. So. Well >>I had 13 consecutive quarters of double-digit growth for a company of of of your age and size is is very impressive. You don't see that often. >>Yeah we've we work pretty hard at that. It's I'd say we really focus on that year to year even though our quarters just keep popping along very nicely for us. You know, starting back in oh six, having been around since then we did start at absolute zero. We didn't have a didn't have a bit in the bank at that time. Uh Now it's a whole different story with our second year over a billion dollars. And when you look at A. T. C. V. Kind of calculation and us transforming into an A. R. R. A. Heavy perpetual base. So we've transitioned with new product offering being all subscription base. So that's uh that's making us um making us even more competitive than than we have been passed. >>I like how you couch that because you don't want to be trapped into that, you know, the quarterly shot clock, but still it's quite impressive performance. And with the A. R. R. That sort of smooth things out, jim I want to ask you about vermin again, virtual this year, second year in a row. Uh You know, it's been it's been frustrating because we can't be face to face, but well, what have you learned about the sort of virtual events? How is it performed for you? Do you see that continuing in some way, shape or form when you get back to physical? How are you thinking about that? >>Yeah, we had, we had two major virtual events last year. And so to your point, we we did learn a lot in terms of what works, what doesn't work, and we've continued to refine refine the plans. Uh One thing that it does is it just really opens the doors for a much broader audience. Typically we get about 2000 ISH people Uh that attend in person for vermin. Uh and uh and last year we had actually about 28,000 people representing 150 countries that registered for the event, and we had over 11,000 that actually attended. Uh and the engagement was, was really good and we, we were our scores in terms of satisfaction, we're, you know, four plus out of five. And so I think we did a pretty good job, but we continue to learn one of the things that you need to do is you need to sort of shorten the agenda because the attention span is not not very long. So all of our sessions are 30 minutes or less and we've actually uh put it over two days where it's about 3.5 hours each day, so we try to keep it a little bit lighter. We still have 30 different breakout sessions. We have keynotes, um, uh, some great speakers that are coming, some great customers that are coming, but you have to integrate some fun, some incentives, things of that sort. So we've been creating a lot of buzz leading up to Vermont with um, a lot of social activity. We have some some new uh, VM Nike kicks that people can win, which has generated a lot of excitement uh, and uh, and we'll be doing a lot of incentives and prizes and things as a part of the event. Uh, so, so that that's a key learning that we, we, we know that people love and just creates a lot of us in addition to of course the great content >>VM has good swag too, is an analyst. I always appreciate that VM and pure storage as you guys are at the top of the living >>area and a >>big thanks for that. But I gotta ask you, so one of the hard parts because you guys are all channel, 100% channel have been from day zero. That's some, that's gotta be tough because we've been in this business a long time doing hybrid for a long time and the sellers love to be belly to belly. They never wanted sort of hybrid. So it's gotta be tougher for the partners as well who are big channel. So how do you integrate the partners? What can we expect, you know, in these types of things going forward? >>Yeah. So I can start with just with the man bill and then we can talk a little bit more, but for the moment we actually have a really strong partner registration, so partners are attending Vermont as well, we have separate sort of cordoned off content specifically for our partners, so they're definitely a key part of that. We have 38 uh sponsors uh that uh you know a part of our ecosystem uh and uh so you know, partners kind of overall are a really key part of iman in addition to to customers attending as well. Uh So that's one way that we continue to connect with with our partners >>bill, that's part of the tam expansion, obviously it's leverage. Right? >>Absolutely. It is and you know, we'll stay with that two tier distribution system that we have affected with those partners and distributors as to how we work through them. Uh Partners are absolutely key key for us all around the globe. Different kinds of partners in the U. S. A rather large wind sell a lot of small ones uh same in the media and same in A P. J. So we'll keep that network going. Why? Because they're they're an extension of the VM arm of our internal sales group that numbers well over 2000 of our people that focus on the selling. But the partners are key. They've adapted nicely I believe, to a lot of virtual events like we're going through now and they to sound like they're as excited as we are about getting things back in uh in person. >>So I always been fascinated by tam expansion. It's part of the Ceos job you have. You know, I love the fact that that incite the board promoted from within somebody. They tapped a Ceo who knew the business. You have to do a reset your at $5 billion Mantra. And so when you're thinking about your tam expansion, cast an acquisition cloud, uh, you guys have been into the SAS backup world for for a bit now it's starting to produce. How are you thinking about the future and opportunities ahead. >>We've got great opportunities with cast and so into the cooper Nettie space. That's a huge uh, market expansion for us in an evolving marketplace. So our goal was, let's be that thought leader. Let's get the best technology that's out there and then you'll see us execute really well. This on the sales side. This uh, this year also 2021 here and beyond the public cloud. Peace with azure with aws with our Google offering. So we're continuing to bring those up the up to up to speed in a sense of size because there's this tremendous future there, that's a big expansion of our team. Also I think Jim might talk a little bit about jumping into that security space a little bit. That is going to be big, It's big for us, It's a selling um selling feature that I think has come a long way. So it is about expanding that tam and our focus is always long term. It is, yeah, evaluation is important, but more important is that, you know, that long term customer service uh meaning new products for them like Office 3 65 that we brought out that has had tremendous growth for us. Uh so we're really excited about the growth, but again, our focus is on for that customer over the long term. It's uh it's years out, it's not the quarters and it's not about that valuation, it's really about how we keep them going in their business. >>So jim talk about that positioning, I mean, you're not a security company, you're not like building firewalls and and perimeters and so forth. But the notion of security and data protection plays in there. I mean, you think about these ransomware attacks, if I can actually recover from a ransomware attack, I got way more leverage and you're part of that recovery process. So those lines are blurring. How do you think about it? >>Yeah, that's that's definitely a key benefit that our solution provides in terms of protection from that. Uh And as we've had new releases into the market v 10 last year, the 11 this year, we've continued to up the ante relative to the protection from ransomware that's obviously a hot topic in the marketplace. And uh, and and we have some some great differentiators that we brought to market. And I think that that's part of why we're seeing the, you know, the strong growth, Uh, B 11, you know, Focus on ransomware, but over 200 new features and capabilities that we have brought to market to make it easier for our customers. We have kind of three key pillars around simplicity, flexibility, reliability, uh, and also just super powerful with the features and capabilities that we bring the market. So, uh, so we're seeing great traction there. Uh, and uh, and that's definitely an area that we're focused on. Uh, as again, we're not a security company, but we do protect from that. And some of the capabilities, you know, give you, if you do run into that situation, the capability to recover quickly and not have to pay a ransom And keep your business running, which is a key focus for us across all of our 400,000 plus customers. >>What about cloud? Cloud is a lot of people, you know, traditionally on prem vendors, they're like threatened by cloud. But clouds a gift for wien I mean it's like the internet is a gift is this big platform that's been built out, you can build on top of it. So how are you guys thinking about the cloud opportunity and the SAS data protection? >>Yeah, we want to go and >>Yeah, absolutely. Sorry, Jim. Yeah, it is a tremendous market opportunity for us. We've evolved as, you know, get back to our roots and 06, it was about um protecting those virtual workloads and we've evolved from there with evolved from there maintaining that that on print businesses is not going away. The public cloud businesses skyrocketed the private cloud business the same way. And we want to have products for all um all of those and the ability to move and move data's move, move workloads around, move those datas around, move that data around. So big piece for us, the casting piece, I keep getting back in how that might evolve with the SAs offering or not. Well, we'll tell over time period here as we work on that product roadmap. So, absolutely tremendous opportunity for us. >>Well, when you think about hybrid jim, I mean, the first thing that people say is for developers, containers, first thing you do is containerized the app and then you don't care where run anywhere right at once. Run it anywhere. That's a big opportunity. >>Yeah, so, so we're definitely focused on building a single platform for all environments. Uh So with the storage integration with the top three hyper scale ear's uh moving into kubernetes and containers, uh backup and protection. Uh So that that's a key part of our strategy. It's again to make it easy for customers To be able to manage all of their backup from one single console. Uh So so that's a key strategy and their own, you know, the research that we've done, I think, you know, due to Covid, we're actually seeing an increase in the move to the cloud, uh and we play in in in two key areas, ones with the hyper sailors and providing, you know, the backup and recovery within those environments, but then also with our service providers and as a service we're seeing really strong growth within that market and that ecosystem. So uh you know, working to to partner with them closely and continue to build that ecosystem and support them and their efforts to to uh to drive growth in the market as well. >>All right I'm gonna let you guys go the last question bill is so what's life like with insight? I know these guys are players. We've we've seen the moves they make is what's the future like? Is I. P. O. Still on the table? What can you tell us about life with insight? >>It's a great question. Well keep in mind we worked with insight in our prior entity uh starting in I think in 2002 we brought them in. So and our partner that's on our account has been with us since that time even though after we sold the business they were out of him. So uh No I'm really well they've been a big help their operations operationally efficiency, efficiently focused. I'd say they're helping us bring new ideas back to the M. And A activity back to your I. P. O. Question. I think that's an avenue for us. We clearly are pushing in that direction to get set up that way. What's it do for us? It gives us that bigger currency versus just cash. It gives you that stock currency to use on M. And A activity that you know I think you saw us do that with Kasten. Uh in the sense of acquiring M. And A. That's been different for vein. We build it from within that was a buy from outside. You'll see us do both both of those in the future. Very important I think uh you know without being too predictive I would say hopefully that's something you see in the I. P. O. Side that in the next 12 24 months a run like that. >>Well, Hey, uh, as an upside of observing the street wants growth, they want execution, they want consistency and you guys bring all those guys. Thanks so much for coming back in the Cube. Always a pleasure. And look forward to seeing you face to face. Hopefully before 22. >>It would be nice. >>All right. Thank you. Thanks. >>Dave. All right. >>You're welcome. Alright, keep it right, everybody. This is Dave Volonte for the Cubes, continuous coverage of them on 2021, the virtual edition, We're right back.

>>From around the globe. It's the cube with digital coverage of Veem on 2020 brought to you by beam. >>Hi buddy. Welcome back to Veem on 2020. My name is Dave Vellante and you're watching the cubes coverage of EMR. This is the first time we've done it. Virtual VIMANA. We've got the, the Veem power panel, bill large and CEO, Jim Kruger, the CMO, Danny Allen. Who's the CTO and senior vice president product strategy. All I have been on earlier guys. Great to see you. Thanks for coming back. digging out of the power panel. Appreciate it. Good. Thank you. Okay. I want to start off a bill. you're going to get a business update, you know we've so I talk a lot about COVID. We can go back to that, but you guys, Mmm. You know, as a private company, you divulge more information. Yeah. Then most private companies. And we appreciate that as an independent guys, if you would bring up that, that one slide, you know, you shared this publicly well earlier. >>I mean, you guys are in a, okay. Billion in revenue now, 21% annual recurring revenue growth. We're going to 75,000 customers, 97% year on year increase in your universal, uh, license bookings. Mmm. Everything seems to be happening. Bill. What, uh, what can you tell us? Well, we had eight. Yeah. We had a great first quarter also that we kicked off where we had, or a transaction with, um, insight venture partners, which, and written the middle of a right in the middle of that quarter. At the end of it, we had that activity that went on, I think would have disrupted, did the business. It didn't land for Q1, really excited about that. We announced our growth, so that here recently, uh, pumped into our row pumped into our second quarter. We, we managed to transition everybody out of offices. We probably add seven per cent of our work for 75% of our work course. >>It needs to move. Yeah, they did that. We had a fantastic April. We're having a very good may. So it's just a great start, uh, with a great customer base. So I'm really excited about it. Okay. You mentioned insight. We obviously covered that. Mmm. Boarded on that. Okay. Insight. They like growth, you know, not like the old school, private equity, you know, suck money out. They want growth options down the road, personality. Maybe it's a rule of 40 rule, you know, the type of company. So that's gotta be exciting, uh, for you guys and your employees. Yeah. I think it's pretty exciting. We've been around a few of us. Who've been around the insight team since 2002. So, uh, a very well known a group of individuals to us. Yeah. Uh, they are focused in the software space and know the infrastructure space really well. >>Uh, my triple that hour, um, our lead on the insight team and his, um, his staff is that's move into, as we move into it, stepping up and moving into our Andrew very revenue focus versus part of a total contract. Bye. Nice. A nice resource to have for things that we might want to do in the future related acquisitions. So we're really excited about it. I mean, if I'm in VC right now, I'm looking at SAS, I'm looking and the software I'm looking for companies that have a, uh, an annual recurring revenue model I'm looking for adoption then. Okay. Okay. And those kinds of cases. Yeah. Do you guys fit that bill? Yeah. There may be a larger size and obviously the early stage startup, but that's kind of the profile of the the company that you want to invest in, in the 2020s, isn't it? >>Absolutely. And I'd also say it's the kind of company we want to invest in, in the future as we go forward to bring in new technologies and expand markets, addressable market, uh, back to comments, we had discussions owner, what's it look like in 2030? And it's like, yeah. Places we're heading. Yeah. Okay. So Danny, Pat Gelsinger is famous on the cube for saying that, look, if you don't ride the waves, can it be yup. Driftwood. So what are the mega trends that you guys are riding, uh, today and that you're seeing in the future? Good. We'll keep you ahead of the pack. Well, we clearly talk a lot about cloud data management. So act two for us is not just moving from perpetual licensing to subscription and evolving with American at a business level. It's also at a technical level. And so we invested heavily, as you know, we demoed earlier today, Veeam backup for office three six, five version. >>Hi, an important point act two for us is not just product. There's also product delivery. That's version, hi of a relief of a product to chemo three years ago. So the backup profits, three 65, we showed you Veem backup for AWS. And you saw from Anton as well, uh, supporting Google cloud storage and supporting all of the major, um, providers. So for us to not just ride the wave, but actually be ahead of everyone else it's to embrace cloud data management and give the customers what they really need. Well, I think you guys are in a unique position too. I mean, you know, if you're, if you, you guys obviously sell on prem, but if you're, there are not prem infrastructure, the company that really living on box margins, um, you know, you can talk the cloud talk, but it's not necessarily a tailwind. Where are you guys? >>So Danny, how is cloud, wait, how cloud is it tailwind of, you know, versus some of the other legacy players? Well, Veem has always been, we always highlight simple, flexible, reliable, but one of the, the parts of flexible of course, is being software defined. And we've been software defined from the very beginning. And if you're in a world where you have to go take a box, plug it into the data center and rack and stack it and do hi, okay. Be there physically. You're not going to survive in this type of environment. So being software defined help desk, not only when the data center, but to help our customers as they go through that evolution. Okay. On prem too, maybe just storing backups in the cloud to actually running their workloads in the cloud. >>Well, so Jim, I want to, I want to turn it to you sort of, I'm thinking about the Veeam brand. Uh, I, we talked earlier about how you guys have always punched above your weight, famous parties and sofa, but now billion dollars now entering a new era. Oh, wait. Yeah. It's ironic that we're now doing virtual events. Okay. No big giant party this year, but I feel like, I mean, you guys are what 14 year old company now. Okay. Kind of growing up your three and your colleagues are bringing, you know, lots of adult supervision. How should we think about, okay. Okay. The or V brand going forward. Yeah, no, I think the, the beam brand is critically important because, uh, there's just a, such a strong affinity and connection with customers. And I think one of the challenges as you get larger and go from 1 billion to 2 billion, a lot of companies miss the beat relative to staying connected to their customers. >>And that's something that we're putting a tremendous amount of focused on that first slide that you see, you flashed up no 91% customer satisfaction, the 75 net promoter score, which is three and a half times industry average. I think our key to success is, is not only bringing great products, the market, but looking at the holistic picture relative to supporting customers and customer satisfaction, which is a key driver of the company. Uh, well, it will help us to continue to build on the brands and, and have, you know, the, the best brand in the market. Well, I w I want to come back to, is the good, the marketing was in the, the panel. I mean, you think about digital. We feel like the war is going to be one in digital in the next a decade. I take the, you pick the GNC example and you think about just even the term, like customer relationship management, you know, we all use CRM systems. >>Yeah. I'm not sure I want to a relationship. Okay. GNC, but I do know this, I want a good deal. Right. If they're going to make me an offer, I'm going to, I'm going to look at that. And, Oh, these other brands, uh, that's digital that is having infrastructure and data, that's obviously protected to be able to offer that at the right time. Awesome. Versus if they can take advantage of it and have the candles. I wonder if you could talk about it, what you see as a, a marketing pro just in terms of digital and, and that customer intimacy. Yeah. Yeah. So, so I think it it's a multifaceted, I think one of the key things that, that, again, Veeam does, that's different than other, uh, companies is that we, we have a direct connection with our customers. So yeah, in our head of product management sends out an update every Sunday, and it goes into quite a bit of detail around sort of how to deploy this, how to deploy that. >>Oh, really? Yeah. Creating a digital journey for the customer from a marketing perspective, because yeah. Like within any situation, no, you, you don't want to talk to a salesperson right off the bat because you know, they're going to try to sell you. Uh, so you want to do something investigation, you need the, the contents and information to help you move along that journey until you get to the point where, okay, now it's time, I've kind of narrowed it down and I need to talk to someone to give me some more information. So I look at, you know, one of the key differentiators of Veem is, is that digital promise, uh, which I think from the founding of the company that rattler put into place, uh, here it is as forward. And when we continue to put a lot of focus on that digital experience, which I think gives us definitely a leg up on the competition. >>So bill, you got to place bets as the CEO. I'm interested in where you're placing bets. I mean, you've yeah. Okay. Some pretty substantial investments in the, your partner, a network. Oh, you've got some big names partners that are okay, you're moving a lot of products, you know, through those guys, obviously your heritage as a company is, is okay. Technical development. Uh, you, you are very successful sales organization, but where are you placing your chips on the table these days? And maybe especially in the context of, of this pandemic, if anything changed in your thinking. Yeah. Well, the vets will always be placed on the product side of it. Yeah. That's a, that's a big products. You go partners and you go our employees and those are the big bets that will make, what are we doing on the partner side work, continuing yeah. Pretty aggressive activity and making sure these partners have a simpler place as I've discussed. >>Yeah. Before to do business with them. It's more challenging the larger unit. Yeah. Yeah. But yeah, we'll keep that focus on it. The product offering has been, again, always go back to any of our taglines. It just works, but it's in the lab, we're going to win. We're going to win that technical decision a process. And then we're putting it up pretty big bets on our employee base. We're all over the world. 4,300. Yeah. The, uh, I think the decisions we have, like a lot of companies have moving forward are going to be, where are you going to work from? You're going to work from that home office. Are you're going to combine it back into the office or are you going to not, you're just going to do, you know, you're going to go back the way things are. I don't think that's going to happen at all. >>So, so best will always be on bringing good product to market technical decisions. So let's, let's talk to Andy about the product. Um, I mean, you've, by saying you've grown up, you've gone from yeah. Relatively narrow yup. Portfolio to now expanding a lot of different use cases, many, many, you know, several different clouds on prem hybrid. Yeah. Et cetera. Mmm. How do you ensure it, Danny, from, uh, from, uh, product stamp, right. That you don't just get a, a collection of point product that you actually have yep. Platform that even, you know, for instance, your licensing model very easily bored. Yeah. That notion, um, how, how do you ensure that you're more of a platform if you will, than just that a bunch of selection of product, the answer to that would be focused maniacal focus. So it's interesting that you brought up licensing. So one of the things that we're very focused on is making that licensing can move across all these different types of infrastructure. >>So no, the universal license allows you to do that. You can move a workload from physical to virtual, to cloud, to back, um, the application services call with, uh, with his hang the license. But we also do that product level too. One of the interesting things that we've been focused on is it's something internally, we call it the Veeam integration platform that enables you to have a central common control playing across the entire organization. But yet you can deploy in the need of environments that make the most sense. So if you think about what we showed you earlier today with beam backup rate Ws, you're running on a, an interface that you deploy out of the AWS marketplace, but that product actually integrate back into Veem availability suite. So that's true of being backup for AWS, Roger being backup from Nutanix. Every time we, we add a new one capability platform, whether it's fast or virtual or wow, we make sure that it's still cause that central connection to the main control plane. >>And that's why we call this five data management, because it gives you that data management cross all of these different infrastructures. Okay. It's clearly not easy to do, but the focus that we have put on this result, then our customers, the class. Okay. Ultimately, so I want to ask you guys about culture, Jim, a start with you. I mean, a lot of people obviously, sorry, averted or asking, I'm still going to have parties. Uh, you got your two founders and sort of, you know, set good, you know, rat mirror would always be right there in the mix lap. Last one to leave, uh, you know, very hard charging and that's kind of steep. the Veem culture, but I'm interested in, and if, if there's been any sort of discernible change, as you get bigger and bigger, how you're able to maintain that culture, you know, w what are some of the things that you want to, I want to keep, and maybe some of the things that you want to evolve. >>Yeah, no great question. And I think culture is, um, I'm a big believer. Yeah. That culture can really differentiate a company in the marketplace. And I think themes culture, uh, in the past has really done that effectively. And I think that's, you know, it shows in the success of the company. So I definitely see it as, you know, as my job, along with the rest of the executive team continued to, to carry that torch forward. Uh, one of the things that I learned coming to beam was, was really winning the hearts and minds of, of the, the, you know, the customers that you're serving. And so that, that can be anything from a party, uh, being totally open to your customers, listening to your customers. I've given them different channels to give you a feedback and just being a company that's easy to do business with. I think it's critically important. And those are some of the key things from a cultural perspective. Uh, that's how we want to carry forward. You mentioned car charging, absolutely being, being aggressive in the marketplace, uh, but bringing solutions to market that really hit the sweet spot. Oh. Relative to customer need, I think is again, one of the, the cultural pieces and that maniacal focus on customer satisfaction, which is absolutely key. >>So, uh, well, I, I wonder bill, if you could comment, maybe in this context, you know, part of your job of course, is Tam expansion traditionally been a, a European based company moving. So the U S I'm curious as to what effect that will have both culturally, you know, and on Tam as well. You're extremely successful, uh, in, in overseas. Oh, of course. So there's maybe even more penetration within the U S and obviously, you know, throughout the call, we've certainly talked a lot about cloud, but maybe your thoughts on it. Okay. Yeah, no, thanks very much. Hopefully you see no impact on culture, in the sense of our move from a European headquarters to a U S headquarters. We definitely felt it important to bring it and U S headquarters in place. We now have moved all us shareholders. Uh, so it's really our culture, but built on yeah. >>Core values back in 2012, that really the everything else branches off of innovate and iterate it's about everybody sells. We clearly add that yeah. A goal for everyone in the company and yeah. And the fact that we also want to win. So we'll fight hard to win bringing it to the U S okay. A lot of our competitors are based in the U S we think we can put up, uh, even though we've got great numbers against all our competitors, we'll even bring the fight much harder. Now that we're in the United States as a headquarter place, change nothing else internationally, globally. So Danny, every I'll five or seven years or so, you know, Gartner or IDC or whomever, but the service is that we just did a survey. Yeah. X percent of the customers are going to rethink their backup. That is in the next 24 months. >>You see that literally every half a decade. Um, so w w what's what's the driving that now, I mean, certainly cloud is a, is it which factor? Sure. Edge. We're going to be talking about the edge for the next many, many years. And then, and it's really going to start to drive revenue at some point kind of like the cloud was 10 years ago. Uh, but so talk about how you guys sort of stay relevant in that conversation and what customers should be about in terms of those transitions. Well, you know, every customer says I'm going to reevaluate my backup solution five or seven years, but the reality is what's happened. Yeah. Industry itself goes through transition. So we go from physical to virtual and as they go to virtual, for example, they say, Hey, I can't use my legacy providers. So I'm going to choose a new one. >>They choose Veeam. And then of course, we go to cloud and we're going to go to containers and we're going to go to edge. And every time he goes through those iterations, there is an opportunity four, the next generation of wow. Form, uh, to emerge. And so beam's focus here is to make sure that we're ahead of those trends to make sure we're thinking ahead of our customers. So right now, for example, you know, I, I spent an hour in order to, in the amount of time thinking about cloud and containers so that when the customer gets there, when they get the edge, when they get through all of these things, but they have a data management platform that protects them. And step one is always going to be the same. I always say the step one for, for every iteration of infrastructure is just ingest the data because you need to protect it. >>It's only after you protected and begin to manage it, be integrated into the business. Can you be into unleashed, but we go through this cycle over and over again. And ultimately it's the, it's the, the vendor, it's the partner that is most trusted, that wins as Jim alluded to our NPS scores for themselves, our customer base. Great, sorry, uh, self our, our intimacy with the customers. Great. Awesome. So, yeah, as long as we keep that close connection, then we think we're well positioned to the lead as we go through the next iteration of infrastructure. Okay. Let's talk about the competition, Danny. Let's stay with you. Okay. Okay. You've got some, well-funded not even startups anymore. Know the companies that are kind of going after the base. You've got a huge install base okay. Of legacy companies. I mean, I think it's easier for, for some of those guys to attack, you know, sort of a box space, the solution, you guys are more software, but I'm sort of interested in, in your take Danny on the shiny new toys and that have obviously have momentum in the marketplace. >>Yeah. You know, the, the shiny new toys, they come out with a solution that is very packaged up and black box. You can't actually, uh, customize it very much for the user need. And that's, we don't believe that that's going to work in the longterm. And the reason I say that, okay, the pandemic we're in, if you can't go into the data center to rack and stack a box, if you can't actually working with the infrastructure that's already in place, then you're not positioned to work well in the longterm. And, and so we have this unfair advantage we've been around for over a decade. We integrate with over 45 different it's storage vendors. That's not including the wild vendors, you know, all of our partners. And so we do have an unfair advantage with a history of all of these integrations, but, but that flexibility is really what our customers need. >>They don't want to be law into the data center. They don't know two, three years from now, their strategy might change. They might say, take the workload, moving to the cloud. And so if your whole focus is on selling your customers, something that I used them to their data center, that in itself is a challenge. And being software defined we're, we're well positioned to make future for any evolutions that happen in the market. Okay. So we're in a good place. I'm, you know, well, knock on wood, but I think we're going to keep going. Yeah. That's an interesting answer. Not one that I expected. Okay. Got it. Makes sense. In the context. Good QA we had with Andy Jassy a while ago. Yeah. Kind of pushing them on, you know, the zillion API APIs. And he basically had a similar answer. Obviously cloud services is different, but essentially saying, we don't know where the market's going. >>So we want to have very granular roll. Yeah. You're kind of a primitive level, uh, so that we have that flexibility and maybe there's trade off, you know, sometimes just in terms of what you called out of the box, but it's a very handy Jessie like answer, it sort of strikes me. Hm. Well, it's certainly true that the, you know, customers don't know a year from now, uh, they've been using that hardware, but a year from now two years from now, we run into another market impediment. They might want that money back. They might want, you might want flexibility to expand into it, different geography or take advantage of it, the advantage of the elasticity of the cloud and buying a piece of hardware. Just the very fact that you buy hardware that essentially ties you into that hardware, at least three years, probably being software defined. >>You can continue to reuse and leverage all the assets that you've already had committing to a lock-in okay. Period of time. So, so from a, from a marketing standpoint, Jim strategy, brand customer intimacy, what sure you're ready. Well, Dan, you already talked a little bit about it in terms of, uh, you know, kind of the, the three cornerstones of, of, of how we think our simplicity, flexibility and reliability. And, you know, as bill talked about, you know, when, when we get into now into a customer, and if they're testing us out trial in us out nine times out of 10, we're going to win, uh, because they see, they see those three key things and those three key things, uh, we hear on a daily basis from our customers and how important that is. So we continue to build out on each of those, uh, the challenges, keeping it simple. >>And that's an area that we have to continue to focus on. Uh, but I think those are the key differentiators for us going forward. I think the flexibility piece as the integration with all the storage, our ecosystem of partners, well, we have, I think, close to 40 partners that are sponsoring, uh, the on here. Uh, so that's a, that that's a key differentiator because we, we work with basically everybody we're agnostic, uh, and again, just easy to do business with an, a true partner. Okay. I got it. I got one more question for Danny and then I want to, I want to ask, well, it was, but okay. Guys, feel free to chime in on this one as well. But some of the things we haven't talked about, well, Danny, uh, containers protecting containers, uh, the edge, you know, these are all sort of emerging opportunities. >>I know you've got some, yes. You know, on the container side, the edge is early days. There's, you know, whole new models of, you know, potentially a lot of data going to be, we created unclear how much it's going to have to be persisted, but certainly would that much data, you know, the IDC forecasts, a lot of it's going to have to be. So your thoughts on some of those other emerging trends that we haven't talked. Okay. Well, the key to this segment of America are our partners. Trust us. We're thinking about this ahead of when they will actually need it. And you're right. I think we're early days in containers. I think we're early days in edge. We don't know, you know, we have a partner ducks unlimited where they're storing data for 60 years, use it from IOT sensors and they keep it for 60 years because they don't know in the future, if that data is going to be relevant. >>And so our focus is to make sure that we're ahead of our customer base in terms of thinking of it. And then yeah, making sure that our platform supports what they need as they need it. You want to be careful about going too far in advance sometimes in the industry to hear about, you know, people who are talking about magic 60 Dustin's solving, okay. Crazy problems that our customers don't actually have. We're very pragmatic. We want to make sure that problems that we're addressing that are platform fundamentally addresses where they are today. And then also be in those discussions with them about where they're going to be tomorrow. Well, maybe some of that magic pixie dust go, go into the COVID vaccine. That would be good. >>They'll bring us home. So, you know, the virtual forklifts are breaking down, came on 2220. What are the big takeaways from Europe? Your first Vivaan as CEO, we've been to many, um, you know, I know, but w what are the big takeaways as the, as the virtual trucks are pulling away? Yeah. Thanks very much for asking that question. We, uh, you know, we did do our first VM on, in 2014, and I can still remember when rat came, I mean said, let's, let's do this. And it's like, Oh, you've got it. Excuse me. This is going to cost a fortune. Why would we ever end? And then he's obviously right. It continues to be right. So, Hey, the story about Veem is gross. And when you're growing, you got funds available. People interested you to innovate. You mentioned containers. Danny did also at Kubernetes and, you know, we've got our forensic cast and that are here with us. >>And yeah, those are all important relationships and will continue to develop relationships. Yes. Cool., uh, we've supported, we've got great customers. we have a gross engine. We're going to continue that we don't plan on being comfortable with where we are. We'll continue to enter it in, go after it. Mmm. Additional Tam, but we'll also take care of that core base we came from. So I'm really excited about yeah. And a lot of great breakout sessions. Uh, I keep, um, right. Yeah. Coobernetti's was on, there was a lot of great ones. I did like the one though. And it was like, fall in love with tape all over again. So when I first saw that they brought it, I went running from my age, correct dates and my John Fogarty NCCR, I found one. Uh, so, uh, had to get readjusted to not. So in any event, I do think we like to have a lot of fun. >>You'll see that we get back. Yeah. Yeah. See where we go. As far as the virtual versus it, an onsite. Yeah. A in the future, we landing on site when, and if so, you'll and you're there. You'll cool. We'll be at the party. Yeah, indeed. And I, but I do think there's going to be some learnings that we carry forward and, you know, I think for awhile and maybe even perfect quite a long time, there'll be some kind of hybrid going on with the same deliver, delivering a hybrid world. Guys. Thanks so much for coming to the cube, making this a successful power panel. It was really a pleasure having you. Great. Thanks for having me. Thanks. Thank you for watching everybody. This is Dave Volante for the cube. Keep it right. There are tenuous coverage, the mom, 2024, right back.

>>From around the globe. It's the cube with digital coverage of Veem on 2020 brought to you by beam >>Hybrid. This is Dave alotta and you're watching the cube tenuous coverage of on 20 it's the Veem online version. One of them course, we've had a pivot, the virtual, the large industry here. He's the CEO of IEM and Jim Kruger is the please marketing officer guys. I wish we were face to face. Okay. You know, this'll do so. Thanks for coming on. Yeah. Thanks. Thank you, Dave. Yeah. Thank you Dave. Glad to be here. Well, first of all, bill, I got to congratulate you it the first time. Really? We awesome. The okay. Blockbuster. So acquisition inside capital growth minded, awesome. Private equity. So congratulations on the new role and you know, best of luck. Hey, well, thanks. Very much greatly appreciated. Yeah. I've been with the team since founding in 2006. So it's a, well, it's a new role. It's, it's a good old, it's a good older team that we're very experienced with it. >>Uh, did you, you, you, you know, the, the good, the bad and the ugly and you know, where the skeletons are buried, you know where to go, okay. The ship. So we wish you the best. And then, you know, in the gym, I gotta ask you, I mean, everybody says, okay, it was really hard decision go to it. The virtual, he actually had no choice, but maybe the harder decision was, can we postpone or do we go forward? You guys chose to go forward. Uh, which I think is the right call. And I'd also think, it seems like you're taking the approach of, you know, we're not just going to try to plug the physical into the virtual. We're going to, I think about the halo effect. Yes. Discussion going, but maybe your thoughts on that pivot. Good. The virtual. Yeah. Yeah. It didn't take us too long to decide. >>And we, we felt, uh, rather than postponing it and, and trying to do a, a large event before the end of the year, which not really, really realistic. Uh, we decided to, uh, to go with the virtual and actually for just a month after, for the most part after, uh, um, what the real event was supposed to happen in Las Vegas. And, uh, yeah, we're really looking at it from, okay. Yeah. Keeping the discussion, going with our customers, keeping them updated. We're going to be highlighting some of the new releases that are going to be coming out, making some key announcements. Right. And it actually gives us an opportunity to draw in more of the crowd from around the entire globe. I think we have 148 different, uh, countries that are represented. Uh, so, um, Oh yeah, it's right. It's a, uh, I think a new platform and, uh, I think it's working very well so far. >>So bill, I, you know, you came into this, this role and immediately, okay. You have dealt with it pandemic I want to talk a little bit about, you know, how you're dealing with that. Um, and we'll get into maybe what you're seeing in your business, you know, the, in, in a way there's a silver lining here. Okay. Okay. It really kind of forces change. You said in your keynote, constant. Uh, but you know, you might have, you know, the business obviously very well and you might've had some gut feels as to where you want it, take it, but change is hard. Boy, everybody has. Okay. Now, so in a way that's sort of a, an accelerant change, your thoughts, what was your first move? Hello, coming into this pandemic. Yeah. Coming into the pandemic. It was one of making sure we understood. Well, what the issues were, getting people home and, and safe working environments. >>So big move was, was that some of our team had a desktop, so they did not have laptops. It made it a little more cumbersome multi-screen so it's really physical activity will move these people. So we moved our whole team, 4,300, about 1300 or so of those people were already, uh, our employees were already working out of their house. Uh, so the big move was let's get them home. Let's make sure they're efficient, good connectivity. And, uh, and with that, we were off and running. I don't believe we missed, uh, much of a beat at all. Considering we started this mid March, we were finishing our a first quarter, which came out right about on plan, which we were really excited about. Okay. It was a, that was the first move I would say. We make a few more to go, okay. The big first move I want to get. >>So I'm going to share some data with you guys. If you bring up the first slide, this is data from our data partner quarter, we go out and we talk customers. And this is a survey of over 1200 of practitioners, buyers, and they're about 120 or so Veeam was in there. And what I'm showing here is data though, the gray bar is data from a year ago, April 19 in survey, the blue bar is January, 2020. And the yellow bar is the April 19, uh, April 20 survey. It was taken right at the height of the lockdown. And, and what this is showing is yep. Customers that are spending more by the percentage of those customers that are doing business with them, the theme, and you can see it, the gray was 50%. It dropped slightly to January nods back up within the height of the lockdown. >>And so what you saw is that new adoptions and people spending more, I E more than 6% is actually, Oh, since, uh, the, the pandemic. Yeah. do you have a w or a bill rather? I'd like to start with you. I wonder if this is what you're seeing, kind of in your businesses, a little bit of an uptick, not all businesses, obviously we're seeing that the, it seems like yours is yeah. Our April was, uh, wow. Mmm. Just amazingly. So, and I think it allowed us to get transition out of the way at the end of March. Well, also closing the quarter, but yeah, we had a, um, we had a double digit gain in it. Hold on. It was extremely a nice way to start that the first month is second quarter. So that's exactly what we're seeing very positive and, you know, Mmm. >>I think that if we talk about Jim, some of the data that you showed in your keynote, you talked about some of the challenges that your, your data showed you guys. Yeah. This new survey. And we'll, we'll talk about that. The data protection. Okay. What stood out was cyber threats. The number one challenge came up and, and I often say that the lines, Queens security, cyber cyberspace, security, and data. Okay, good. And backup and recovery are really starting to blur you guys, aren't known as a cyber company, but increasingly people are thinking about data protection and backup recovery as part of their overall cyber strategy. Yeah. Yeah. I agree. And, and I think, um, you know, from, from our most recent release version 10, we built in some new capabilities around a ransomware protection and cybersecurity. So yeah, I would say those lines are blurring, but we're definitely not a security company. >>Uh, although as you mentioned, a backup definitely provides us security and customers want to be able to do yeah. Prior to putting things into production. And that's some of the, some of the new capabilities that we've provided our latest version. Well, I mean, and, and cyber obviously is, is expensive to become a board level topic as you well know, it has been here's the later on we're interviewing Gill Vega, who's your, your newly minted CSO. And you're, you're seeing that, that role, you know, expand, it's not just sort of off on the corner. Okay. It's its problem. Or it's this, the security sec ops teams problem. It really is. Yeah. Is it tongue in cheek is it's a team sport, but yeah. You really have to take a broader view of okay. Of cyber don't you and especially bill given something that you shared in your, a keynote talk, you shared some IDC data, you know, a five X increase in zettabytes over a seven year period. >>I think 33 and 2018 up to one 75, 25 and uptake in bets that IDC is probably low and that number. Okay. Yeah. Yeah. Probably low. Well, that's what we're saying. You know, you brought up a good point. It's a evolution into a much larger entity in protecting, I think, many more customers, well, over 375,000 customers, and that's bringing a vague on, or a CSO and a major step for us focus on external and internal. Okay. The threats that exist out there. So a major activity for us and bringing, 'em bringing Gil on. So you're right. Our gross, we think that's where it goes for growth continues to evolve. Uh, we have our customers, um, and what we're trying to make sure we do is we protect. Yeah. Talk about security. That's a little bit, little bit of that protect. Awesome. And then make sure they have access to their data and same with our employee count. >>What are we trying to do? Yeah. COVID-19 is that, we're trying to make sure we can your employees as well as make them yeah. Yup. In this whole process. Yeah. The cyber threats playing into the security. Well, bill staying on, on, on the, COVID a discussion for a minute, you talked in your, you know, what about, there were three things. Okay. the resource management security and governance and, and digital transformation all very relevant in the context of this. Yeah. My question is, can you add some color as to beam's role in those areas? Yeah. Well, clearly in the governance each have, that's built in our product. There's an orchestration on all the products, the offerings that we have, I think, right. Our primary concern, those does go back to go back protecting data and making it accessible. So, I mean, I think that's where it's most common place for us to see our focus has been, has been not security as Jim said, we're not a security. >>Yep. It's really availability data availability and its data availability. Wow. Okay. Uh, back to the hybrid class loud conversation that we, uh, we talked about is that, is that we want to be yeah. Yep. That make data available over hydro hybrid cloud. I think with the COVID-19 it's showing that the cloud base activities are going to be more critical. Cool. Uh, versus, um, in addition to right. Okay. Okay. So an answer that one. So Jim, I want to ask you about something you talked about in the keynote, which is the data protection report. I referenced it earlier. Tell us a little bit more about this, the study you guys. Yeah. You guys are like, I am, you love data. Okay. W what was that study all about and what were some of the key takeaways? Yeah. So just, just a few months back. So it's a fresh off the presses. >>Uh, we, um, I surveyed about 1500, uh, uh, it pros across the world and one to just get a good feel for where their head is, uh, what are some of the key concerns they have? Uh, and so we kind of bucket it into three, three key areas. Uh, one was around downtime threats. Uh, what you talked about, the, the security, uh, in ransomware threats is definitely top of mind, uh, for customers. Uh, we also, um, drill down a little bit into the move to the cloud and then also digital transformation. Uh, and what's clear is that, you know, I think in the past, you know, people thought that, um, you know, their most important data was the only data that needed active. And we're seeing, uh, some compression there relative to, uh, you know, customers thinking they need to do okay. It basically yeah. >>Protect all data. Uh, so, um, the, the difference between sort are the critical data and just normal data is really blending together. Uh, and so they're looking to, to drive efficiencies from that perspective. Uh, and, uh, and I think about 49% of the customers are backing up the cloud today. Uh, so a pretty good number. Uh, but that jumps to, I think, around 76. Yeah. Right. In two years, uh, of customers who believe that they'll be using the cloud as a, um, for backup and then on the digital transformation side of things. No, I don't think there's a company out there who doesn't have some sort of digital transformation initiative. Uh, but they are struggling a little bit, they're struggling, uh, with, um, uh, with, uh, the resources that they have that they have, and, and, uh, those resources being competent to, to really take the company's in a new direction because of a lot of those resources are focused on existing projects and keeping the business up and running. >>Uh, so that's a key area that we're, that they're looking to like free up resources, it's focused on digital transformation. And then we get into some of the benefits that they're seeing from that, uh, and so forth. So, yeah, it's a good all around report to really understand the state of the market. I want to stay on the survey for a minute if I can, and then have that bill tied into the property strategy. Mmm. W w one of the other things, the things that stood out was one of the, the blockers you will, uh, the customer sided, they said lack of skills. So, you know, right. A legacy it, or maybe that's technical debt yeah. As well, uh, and then budget constraints. And so, I mean, yeah. Kind, those are good blockers for you guys. You, you, you simplify, you know, the old yeah. Yes. Works. Mmm. You know, you've been amazing that maintaining relevance or whatever, 10 plus year old company. Yeah. You're right there with all the upstarts and the big portfolio companies. And then of course, budget constraints. I was talking to Anton earlier really focused on the economics. Okay. Protecting data, but maybe you could add some color. So those sorts of sure. Customers referenced. Okay. Because there challenges to moving forward. >>Yeah. Yeah. So, um, you mentioned one big one, which is skills. Uh, so I think, uh, training and education, it is definitely, certainly one of them. Uh, I think from, from beam's perspective, we, we definitely help in all of those areas because, uh, our, our solution is easy to use, uh, easy to manage, easy to deploy. Uh, and so when you look at the resources, Harrison does some of the legacy solutions that our customers have. They're typically able to save a significant amount on the budget side, insignificant amounts on the resources. They just don't simply don't need as many people, uh, to, uh, to operate a beam backup solution. So they can redeploy some of those resources into other areas, uh, which, uh, which has been definitely an attraction to them. You mentioned the IDC data and that bill talked about, but that's one of the reasons if you look back in the second half of 2019, we actually grew three times as fast as the market average. >>Uh, I think mainly because of that, and a lot of people are switching from their legacy over to, uh, to Vien because, because of those reasons. Yeah. So, well, bill, I want to tie that into it. The company's strategy you guys have been okay. I'm unapologetic about the core of which is backup. That was kind of, you know, obviously recovery is part of that. Okay. But, you know, there's a lot of discussion about data management trying to sort of, you know, expand the notion of the Tam and you guys obviously dissipate as well. Well, it's sort of three things yeah. Manage and transform. Well, some of the things that you guys talked about in, you know, but the core is protected. You're all about backup recovery, data protection. Okay. You know, the examples of that at GNC, for example, and some of the others do, you know, uh, discussions were all about protecting some of that for data, but then you get into management is that's sort of Tam expansion, if you will. >>And then the transform, you know, I think we, we, I think we get the, the protector pretty well. It's the managing transform that sometimes there's a little bit, yeah, horrible. Hey, the people, but I wonder if you could sort of add some, some texture to that. Yeah. Well, we've always had a very, yeah. Our focus has been on the protect side and the managed, transform is key pieces that we've added on, uh, over the time period. So playing that bigger Tamar, bigger markets. Yeah. A cloud data management market, it's his 30 plus billion dollar marketplace. So I think you'll see. Um, and that's where, we've where we've expanded. It was three 60. Bye. Alright. Protect category. So it is one of 'em moving on up into that, but we will stay. Huh? Okay. Yeah. Core piece of our business tech side, it's extremely important to us. >>We stay focused, it's allowed our development team just stay focused and bring forth Hmm. We believe peer to any of our competitors and, uh, yeah. Okay. Continue to move that way. So bill, I mean, Veem has always been known for punching above its wait glass. I mean, the, you know, the, the very clever naming of the company are you pronounced parties, et cetera, et cetera, et cetera. But now they a top dog now. So, uh, maybe the strategy is to continue to punch above the weight class. Yeah. Which would be a great thing. Although you're now a mainstream, you mean 375,000 customers. You're adding in a very, very rapidly pace. You're a big dog now. W what can we expect going forward from being well? Well, you know, a big piece of our change was our universal licensing. So we want to make sure, yeah. >>Those licensed portable, take them with you, be able to use them in a different way, uh, in different settings. So I think we'll work on, uh, always punching above our weight that was really started with our founders. Uh and Andre Bernoff. We, uh, clearly we're number one. People might not have believed that in the beginning, but yeah. We rate to it. So I think you'll see us with more products. Yeah. Innovation in that space. And, um, uh, and, and working very aggressively, too, take command to the multicloud environment. Well, you know, your business practices have always been pretty meeting edge and forward thinking. You mentioned the flexibility and from licensing, you know, that's something that, you know, you're, you're known for even partners when I talk to your partners. They, so yeah. You know, Veeam has made it very simple for us new business. I'm not sure worrying about, so much about who gets to paid, where they've sort of made that transparency. >>You get very high marks for that. And so there's a, yeah. You're known for your tech, you're known for that products. Yeah. But there's also some innovation on the, on the business model side as well. Isn't there. Yep. Absolutely. Our partners, the significant number of partners from what's this a long time. Uh, we do like to make sure that everybody in that the distribution channel and we are two tier distribution. Mmm profitability. Yeah. Keeping it simple, becomes more challenging. I think the larger you get yeah. Uh, very hard making it simple. And it takes some time, a little bit of, um, iteration for us. One of our core values, innovate, iterate to make it simple, to keep it that way. We want our partners to be, be comfortable working with us and making good economics and knowing that we're going to bring, we're going to bring that roadmap products, uh, and to them when we get our products ready and they are the products in the market place, that situation in the lab. >>Yep. We're going to work the first time we're going to work well for me. Sure. Well, Jim, I wanted to ask you about some of the customers that you referenced. Okay. I mentioned G GNC, you guys showed a video of that. That was pretty cool. Okay. It was interesting hero motor Corp. Oh. They don't call themselves a motorcycle company, but that's essentially what they are. And then, and then IBM cloud was really interesting to see them in there partner. There, there are customer, I guess. Hm, yup. Editor or one side of the house. So that was kind of an interesting example. Some of the customer takeaways I can share. Yeah. Yeah. So, um, when you look at GNC, uh, you know, some of the things that they referenced was, uh, you know, a, a six figure ROI over, over a three year period. Uh, and again, that was one of the key drivers as to why they went, went with him again, just more efficient. >>Um, and, uh, yeah, Hiro, motor Corp, very interesting. They're the world's largest a manufacturer of two wheel to wheel vehicles and they do produce the, and motorcycle every two seconds. Oh. And they produced over 90 million. So yeah, they're a large organization. I think they have closed. Okay. 10,000 employees, uh, and, um, VJ set the, who is, who is their CIO among other things that their company, um, yeah. Yay. Yeah. As, as you heard, he talks a lot about, uh, how they're managing through COVID-19 and he really is a big believer that number one, you got to take care of your people and make sure that they're safe and make sure that they're set up so that they can work from home and so forth. Uh, but then also really planning for not just managing through the crisis, but also recovery, uh, which, uh, which is really important. >>That was some of the advice that huh, that he gave of course, to a, to the attendees of been, which I think is really good advice. And then IBM cloud has been, yeah, been a great partner, uh, and the customer for, for quite some time, we're working very closely with them backup as a service they're leveraging kind of the full suite of products and getting great traction. And as, as we saw from some of the data, the backup as a service is going to continue to grow. Yeah. That'd be a great opportunity for both IBM and being more contained. Well, it's guys exciting time for you. I mean like many people, I, I bumped into Veeam at a V mug. Ooh, wow. That was, you know, years and years and years ago. And to watch your ascendancy, it has been a pretty astounding products, a very well run company, a good vision, uh, just awesome customer. >>So, so bill, you know, you're on deck, when we get to 2030. Yeah. What do you want this to look like? Uh, well, multi multibillion by 2030, that's a long way out. It'll be interesting in the transformation that is made and we'll see what happens really globally with, um, the whole work from home, how moves, how office space plays into it, product innovation and delivery. We think we're at the forefront back. It started in the virtualization space back in Oh six and, uh, for some really creative projects products, I think we'll continue to S it's extended to see that what's 2030 bring yeah. Multi-billion and we're going to continue to add employees throughout the world. We've got over 4,300 employees, right. You mentioned keynote, uh, that are in them, you know, a multitude of countries. And, uh, it's just an absolute, I'm thrilled to be part of M and M and, uh, help us work as a, uh, a family organization products. Well, we really had a great deal of okay. Following Veem and participating in the beam on, and I really appreciate you guys having us here at the, uh, the, the digital event, but thanks guys for coming on. Yeah. And sharing your insights. Great. Yeah. Thanks very much. Thanks. Thank you for watching the cubes. Continuous coverage of Veem on 2020, the virtual digital version. Keep it right there, right back. Great. The short break.

>> Narrator: From around the globe, it's theCUBE. With digital coverage of VeeamON 2020. Brought to you by Veeam. >> Hi everybody, welcome back to VeeamON 2020. My name is Dave Vellante, and you're watching theCUBE's coverage of VeeamON. This is the first time we've done Virtual VeeamON. We've got the Veeam power panel, Bill Largent, CEO, Jim Krueger, the CMOs, Danny Allen who's the CTO and Senior Vice President Product Strategy. All have been on earlier, guys great to see you. Thanks for coming back and digging out of the power panel. Appreciate it. >> Good. >> Thank you Dave. >> I'm glad to be here. >> Thank you Okay, I want to start off, Bill, get a business update. We've so I talk a lot about COVID. We can go back to that, but you guys, as a private company, you divulge more information, than most private companies. And we appreciate that as an independent but guys, if you would bring up that one slide. You shared this publicly a little earlier. I mean, you guys are a billion in revenue now, 21% annual recurring revenue growth, 375,000 customers, 97% year on year increase in your universal license bookings. Everything seems to be happening, Bill. What what can you tell us? >> Well we had a great first quarter also that we kicked off where we had our transaction with insight venture partners, which right in the middle of that quarter, at the end of it, we had that activity that went on, that one might think would have disrupted the business, it didn't, we had our plan for Q1, really excited about that. We announced our growth saw that here recently. We're really pumped into our second quarter. We managed to transition everybody out of offices. We probably had 75% of our workforce move. Yeah, they did that. We had a fantastic April. We're having a very good May. So it's just a great start with a great customer base. So I'm really excited about it. >> Yeah, you mentioned insight. We obviously covered that and reported on that. Insight, they like growth, not like the old school private equity, suck money out. They want growth, they want options down the road (mumbles) Maybe it's a rule of 40 rule, the type of company. So that's got to be exciting for you guys and your employees. >> Yeah, I think it's pretty exciting. Few of us have been around the insight team since 2002. So a very well known group of individuals to us. They are focused in the software space and know the infrastructure space really well. My triple that hour our lead on the insight team and his his staff is that's a move into, as we move into it, stepping up and moving into our very revenue focus versus part of a total contract. But nice resource to have for things that we might want to do in the future related acquisitions. So we're really excited about it. >> I mean, if I'm in VC right now, I'm looking at SaaS, I'm looking and it's software, I'm looking for companies that have an annual recurring revenue model I'm looking for adopting of products and those kinds of of KPI's and you guys fit that bill Maybe a larger size and obviously in the early stage startup but that's kind of the profile of the the company that you want to invest in 2020s, isn't it? >> Absolutely, and I'd also say it's the kind of company we want to invest in, in the future as we go forward to bring in new technologies and expand markets. Addressable market back to comments, we had discussions on, what's it look like in 2030? And it's like, okay, those are we're heading. >> So Danny, Pat Gelsinger is famous on theCUBE for saying that, look, if you don't ride the waves, can it become driftwood. So what are the mega trends that you guys are riding today and that you're seeing in the future? We'll keep you ahead of the pack. >> Well, we clearly talk a lot about cloud data management. So act two for us is not just moving from perpetual licensing to subscription and evolving with American at a business level. It's also at a technical level. And so we invested heavily, as we demoed earlier today, Veeam backup for Office 365 version 5. An important point act two for us is not just product. There's also product delivery. That's version 5 of a release of a product to that came out three years ago. So the backup for office 365, we showed you Veeam backup for AWS. And you saw from Anton as well supporting Google cloud storage and supporting all of the major cloud providers. So for us to not just ride the wave, but actually be ahead of everyone else it's to embrace cloud data management and give the customers what they really need. >> Well, I think you guys are in a unique position too. I mean, if you guys obviously sell on-prem, but if you're they're an on-prem infrastructure company, really living on box margins you can talk the cloud talk, but it's not necessarily a tailwind for you guys? So Danny, how is cloud, right how cloud is it tailwind for Veeam versus some of the other legacy players, >> Well, Veeam has always been, we always highlight simple, flexible, reliable, but one of the, the parts of flexible of course, is where it's being software defined. And we've been software defined from the very beginning. And if you're in a world where you have to go take a box, plug it into the data center and rack and stack it and be there physically. You're not going to survive in this type of environment. So being software defined help us, not only when the data center, but to help our customers as they go through that evolution. On-prem too, maybe just storing backups in the cloud, actually running the workloads in the cloud and protecting there. >> Well, so Jim I want to turn it to you sort of thinking about the Veeam brand. we talked earlier about how you guys have always punched above your weight, famous parties and so forth, but now billion dollars now entering a new era. It's ironic that we're now doing virtual events. So no big giant party this year, but I feel like, I mean, you guys are what, 14-year old company now, and kind of grown up you three and your colleagues are bringing you lots of adult supervision. How should we think about the VeeamON or Veeam brand going forward? >> Yeah, no, I think the Veeam brand is critically important because there's just such a strong affinity and connection with customers. And I think one of the challenges as you get larger and go from 1 billion to 2 billion, a lot of companies miss the beat relative to staying connected to their customers. And that's something that we're putting a tremendous amount of focus on that first slide that you flashed up no 91% customer satisfaction, a 75 net promoter score, which is three and a half times industry average. I think our key to success is not only bringing great products, the market, but looking at the holistic picture relative to supporting customers and customer satisfaction, which is a key driver of the company. well, it will help us to continue to build on the brands and have the best brand in the market. >> Well, what I want to come back to is the marketing whiz in the panel. I mean, you think about digital. We feel like the world is going to be one in digital in the next a decade. I take the pick the GNC example. And you think about just even a term like customer relationship management, we all use CRM systems. I'm not sure I want a relationship GNC, but I do know this, I want a good deal, right. If they're going to make me an offer, I'm going to look at that and these other brands, that's digital that is having infrastructure and data That's obviously protected to be able to offer that at the right time, for the right customer, so that they can take advantage of it and have the right candles. I wonder if you could talk about what you see as a marketing pro just in terms of digital and that customer intimacy. >> Yeah so I think it it's a multifaceted, I think one of the key things that again Veeam does that's different than other companies is that we, we have a direct connection with our customers. So in our head of product management sends out an update every Sunday, and it goes into quite a bit of detail around sort of how to deploy this, how to deploy that. And really creating a digital journey for the customer from a marketing perspective, because yeah, like within any situation, you don't want to talk to a salesperson right off the back because you know, they're going to try to sell you. So you want to do something investigation, you need the contents and information to help you move along that journey until you get to the point where, okay, now it's time, I've kind of narrowed it down and I need to talk to someone to give me some more information. So I look at one of the key differentiators of Veeam is that digital experience which I think from the founding of the company that Rattler put into place has carried us forward. And when we continue to put a lot of focus on that digital experience, which I think gives us definitely a leg up on the competition. >> So bill, you got to place bets as the CEO. I'm interested in where you're placing bets. I mean, you've made some pretty substantial investments in your partner network. You've got some big names partners that are okay, you're moving a lot of products through those guys, obviously your heritage as a company is steep. And technical development you are very successful sales organization, but sir, where are you placing your chips on the table these days? And maybe especially in the context of this pandemic, if anything changed in your thinking. >> Yeah, well the bets will always be placed on the product side of it. That's a big, so your products. You go partners and you go our employees and those are the big bets that will make, what are we doing on the partner side we're continuing pretty aggressive activity and making sure these partners have a simpler place as I've discussed before to do business with them. It's more challenging the larger we get. But yeah, we'll keep that focus on. The product offering has been a again, always go back to any of our taglines. It just works, put us in the lab, we're going to win. We're going to win that technical decision a process. And then we're putting it up pretty big bets on our employee base, we're all over the world 4,300. The I think the decisions we have, like a lot of companies have moving forward are going to be, where are you going to work from? You're going to work from that home office. So you're going to combine it back into the office or are you going to not, you're just going to yeah. Do you're going to go back the way things are. I don't think that's going to happen at all. So take bets will always be on bringing good product to market like technical decisions. >> So let's, let's talk to Andy about the product. I mean, you've I saying you've grown up, you've gone from yeah relatively narrow portfolio to now expanding a lot of different use cases, many several different clouds on-prem hybrid, et cetera. How do you ensure it, Danny, from product standpoint That you don't just get a, a collection of point product, but you actually have a platform that even, for instance, your licensing model very easily. support that notion, how do you ensure that more of a platform, if you will, then just the, a bunch of selection of product, >> The answer to that would be focused maniacal focus. So it's interesting that you brought up licensing. So one of the things that we're very focused on is making that licensing can move across all these different types of infrastructure. So the universal license allows you to do that. You can move a workload from physical to virtual, to cloud, to back the application services call with a single license. But we also do that product level too. One of the interesting things that we've been focused on is it's something internally, we call it the Veeam integration platform that enables you to have a central common control playing across the entire organization. But yet you can deploy in the need of environments that make the most sense. So if you think about what we showed you earlier today with beam backup rate AWS, you're running on an interface that you deploy out of the AWS marketplace, but that product actually integrate back into Veeam availability suite. So that's true of being backup for AWS, Roger being backup from Nutanix. Every time we add a new one capability platform, whether it's fast or virtual or cloud, we make sure that it's still cause that central connection to the main control plane. And that's why we call this five data management, because it gives you that data management cross all of these different infrastructures. It's clearly not easy to do, but the focus that we have good on this result, then our customers, ultimately, >> So I want to ask you guys about culture, Jim, I start with you, I mean, a lot of people, obviously story averted, or asking this theme, still going to have parties you got your two founders and sort of set good. Ratt would always be right there in the mix lap. Last one to leave very hard charging and that's kind of steep in the Veeam culture, but I'm interested in, and if there's been any sort of discernible change, as you get bigger and bigger, how you were able to maintain that culture, what are some of the things that you want to keep, and maybe some of the things that you want to evolve. >> Yeah, no great question. And I think culture is I'm a big believer. Yeah. That culture can really differentiate a company in the marketplace and I think themes culture in the past has really done that effectively. And I think that's it shows in the success of the company. So I definitely see it as as my job, along with the rest of the executive team to continue to, to carry that torch forward. one of the things that I learned coming to Veeam was, was really winning the hearts and minds of the customers that you're serving. And so that can be anything from a party being totally open to your customers, listening to your customers, I've given them different channels to give you a feedback and just being a company that's easy to do business with. I think it's critically important. And those are some of the key things from a cultural perspective that's how we want to carry forward. You mentioned car charging, absolutely being aggressive in the marketplace. but bringing solutions to market really hit the sweet spot Relative to customer need, I think is again, one of the cultural pieces and that maniacal focus on customer satisfaction, which is absolutely key. >> So well, I wonder Bill, if you could comment, maybe in this context part of your job of course, is an expansion traditionally been a European based company moving So the US I'm curious as to what effect that will have both culturally and on Tam as well. You're extremely successful in, in overseas. Oh, of course, so there's maybe even more penetration within the US and obviously throughout the call, we've certainly talked a lot about cloud, but maybe your thoughts on it. >> Okay, Well, thanks very much. Hopefully you see no impact on culture, in the sense of our move from a European headquarters to a US headquarters. We definitely felt it important to bring it a us headquarters in place. We now have moved all us shareholders. our culture is really the built on core values that we develop back in 2012, that really the everything else branches off of innovate and iterate it's about everybody sells. We clearly add that yeah. A goal for everyone in the company and the fact that we also want to win. So we'll fight hard to win bringing it to the US okay. A lot of our competitors are based in the US we think we can even though we've got great numbers against all our competitors, we'll even bring the fight much harder. Now that we're in the United States as a headquarter place, change nothing else internationally, globally. >> So Danny, every I'll five or seven years or so Gartner or IDC or whomever without a service is that we just did a survey that yeah. X percent of the customers are going to rethink their backup strategies in the next 24 months. You see that literally every half a decade. so, well what's, what's the driving that now. I mean, certainly cloud is it which factor edge we're going to be talking about the edge for the how many years, and then, and it's really going to start to drive revenue at some point kind of like the cloud was 10 years ago. but so talk about how you guys sort of, are they relevant conversation and what customers should be thinking about in terms of those transitions? >> Well every customer says I'm going to reevaluate my backup solution every five or seven years, but the reality is what's happened. Yeah. Industry itself goes through transition. So we go from physical to virtual and as they go to virtual, for example, they say, Hey, I can't use my legacy providers. So I'm going to choose a new one. They choose Veeam. And then of course, we go to cloud and we're going to go to containers and we're going to go to edge. And every time he goes through those iterations, there is an opportunity for the next generation of platform to emerge. And so beam's focus here is to make sure that we're ahead of those trends to make sure we're thinking ahead of our customers. So right now, for example I spent an in order to in amount of time thinking about cloud and containers so that when the customer gets there, when they get the edge, when they get do all of these things, but they have a data management platform that protects them. And step one is always going to be the same. I always say the step one for every iteration of infrastructure is just ingest the data because you need to protect it. It's only after you protected and begin to manage it, be integrated into the business. Can you be into unleashed, but we go through this cycle over and over again. And ultimately it's the, the vendor, it's the partner that is most trusted, that wins as, as Jim alluded to our NPS scores for themselves, our customer base, right, sorry self our intimacy with the customers. Great. Awesome. So as long as we keep that close connection, then we think we're well positioned to the lead as we go through the next iteration of infrastructure. Okay. Let's talk about the competition, Danny. >> Let's stay with you. Okay. You've got some, well-funded not even startups anymore. Okay. Companies that are kind of going after the base, you've got a huge install base okay Of legacy companies. I mean, I think it's easier for, for some of those guys to attack sort of a box space, the solution, you guys are more software, but I'm sort of interested in take Danny on why the shiny new toys and that have obviously have momentum in the marketplace. >> Yeah, the shiny new toys, they come out with a solution that is very packaged up and black box. You can't actually customize it very much for the user need. And that's, we don't believe that that's going to work in the longterm. And the reason I say that, okay, the pandemic we're in, if you can't go into the data center to rack and stack a box, if you can't actually working with the infrastructure that's already in place, then you're not positioned to work well in the longterm. And, and so we have this unfair advantage we've been around for over a decade. We integrate with over 45 different storage vendors. That's not including the wild vendors all of our partners. And so we do have an unfair advantage with a history of all of these integrations, but that flexibility is really what our customers need. They don't want to be law into the data center. They don't know two, three years from now, their strategy might change. They might say, take the workload, moving to the cloud. And so if your whole focus is on selling your customers , something that I used them to their data center, that in itself is a challenge. And being software defined we're well positioned to make future for any evolutions that happened in America. Okay. So we're in a good place. I'm well, knock on wood, but I think we're going to keep going. >> Yeah. That's an interesting answer. Not one that I expected, but it's to make sense in the context with a QA we had with Andy Jassy a while ago. I was Kind of pushing them on the zillion APIs. And he basically had a similar answer. Obviously cloud services is different, but essentially saying, we don't know where the market's going. So we want to have very granular role at You're kind of a primitive level so that we have that flexibility and maybe there's a trade off sometimes just in terms of what you called out of the box, but it's a very handy Jessie like answer, it sort of strikes me. >> Well, it's certainly true that the customers don't know a year from now they've been using that hardware, but a year from now two years from now, we run into another market impediment. They might want that money back. They might want, you might want flexibility to expand into it, different geography or take advantage of the elasticity of the cloud and buying a piece of hardware. Just the very fact that you buy hardware that essentially ties you into that hardware, at least three years, probably being software defined, you can continue to reuse and leverage all the assets that you've already had committing to a lock-in period of time. >> So from a, from a marketing standpoint, Jim strategy, brand customer intimacy, what you're in. >> Well, Dan, you already talked a little bit about it in terms of kind of the, the three cornerstones, of how we think our simplicity, flexibility, and reliability. And as bill talked about when we get into now into a customer, and if they're testing us out trial and us out nine times out of 10, we're going to win because they see those three key things and those three key things we hear on a daily basis from our customers and how important that is. So we continue to build out on each of those the challenges, keeping it simple. And that's an area that we have to continue to focus on. but I think those are the key differentiators for us going forward. I think the flexibility piece is the integration with all the storage, our ecosystem of partners. Well, we have I think close to 40 partners that are sponsoring the Amman here. so that's a, that's a key differentiator because we work with basically everybody we're agnostic. and again, just easy to do business with an, a true partner. >> I got it. I got one more question for Danny, and then I want to ask bill to close, but okay. Guys, feel free to chime in on this one as well. But some of the things we haven't talked about about money , Danny containers, protecting containers the edge these are all sort of emerging opportunities. I know you've got some, yes, on the container side, the edge is early days. There's whole new models of computing potentially a lot of data going to be, we created, okay. Unclear how much is going to have to be persistent, but certainly would that much data the IDC forecasts, a lot of it's going to have to be. So your thoughts on some of those other emerging trends that we haven't talked. >> Well, the key to this segment of America are our partners Trust us. We're thinking about this ahead of when they will actually need it. And you're right. I think we're early days in containers. I think we're early days in edge. We don't know we have a partner ducks unlimited where they're storing data for 60 years. Use it from IOT sensors, keep it for 60 years because they don't know in the future, if that data is going to be relevant. And so our focus is to make sure that we're ahead of our customer base in terms of thinking of it, and then making sure that our platform supports what they need as they need it. You want to be careful about going too far in advance. Sometimes in the industry you hear about people who are talking about magic 60, Dustin's solving Crazy problems that our customers don't actually have. We're very pragmatic. We want to make sure that problems that we're addressing that are platform fundamentally addresses where they are today. And then also be in those discussions with them about where they're going to be tomorrow. >> Well, maybe some of that magic pixie dust go into the COVID vaccine. That would be good. They'll bring us home. So the virtual forklifts are breaking down, came 20, 20. What are the big takeaways from Europe? Your first VeeamON as CEO, but what are the big takeaways as the virtual trucks are pulling away? >> Yeah. Thanks very much for asking that question. We you know, we did do our first VM on, in 2014, and I can still remember when Ratner came to, I mean, let's do this. And it's like, Oh, you've got it. Excuse me. This is going to cost a fortune. So why would we ever end? And then he's obviously a right. It continues to be right. So I hate the story about Veeam is gross. And when you're growing, you got funds available. People interested you to innovate. You mentioned containers. Danny did also at Kubernetes and we've got our forensic cast and that are here with us. And yeah, those are all important relationships and will continue to develop relationships and . But why Veeam we've supported, we've got great customers for it. We have a gross engine, we're going to continue that we don't plan on being comfortable with where we are. We'll continue to enter in, go after it. Additional Tam, but we'll also take care of that core base we came from. So I'm really excited about, we had a lot of yep. A lot of great breakout sessions. I keep right. Okay. K was on, there was a lot of great ones. I did like the one though. And it was like, fall in love with tape all over again. So when I first saw that they brought it, I went running from my age, correct tapes and my John Fogarty NCCR I've found one. so had to get readjusted to not. So in any event, I do think, Nope. We like to have a lot of fun. You'll see that we get back See where we go as far as the virtual versus an onsite in the future, we landing on site when, and if so, you'll, and you're there you'll, you will be at the party. >> Yeah, indeed. And I, but I do think there's going to be some learnings that we carry forward and I think for awhile and maybe even perfect quite a long time, there'll be some kind of hybrid going on with the seem to live in a hybrid world. Guys thanks so much for coming to theCUBE and making this a successful power panel. It was really a pleasure having you. >> Great. >> Thanks for having me. >> Thanks. >> Thank you for watching everybody. This is Dave Vellante for theCUBE. Keep it right here. There are tenuous coverage, the VeeamON 2020, right back. (slow instrumental music)

(upbeat music) >> We're back at the ARIA in Las Vegas you're watching theCUBE's coverage of Veeamon 2022 live in person, but there's a big hybrid event going on. Close to 40,000 people watching online. This is the CEO segment. The newly minted CEO Anand Eswaran is here. And it's great to see you. Thanks for coming on. First time on theCUBE. >> Yeah, first time on theCUBE, excited to be here. Newly minted, those words, I haven't heard those for a long time. But thank you for the warm introduction, Dave. >> So why Veeam? What did you see that attracted you to Veeam? You have a great career, awesome resume. Why Veeam? >> A lot of different things. You know, it started with when I spent a good bit of time... I spent months with, you know, Insight, with Bill Largent who is now the chair of the board. And for me a few things, one, it started with the company culture. I absolutely loved... I spent time with our engineering team that it's an innovation-focused culture. It's an engineering-focused culture, which is so critical to any software company. And so that was the first place. And I spent a good bit of time with customers, reading, research, you know, brilliant products, always innovating. You know, even though it's a category you would think is fairly mature. I mean, when Veeam for example, did instant recovery. I mean, that was extreme innovation. And so that was the first thing which was appealing. The second thing was, you know, yes, we've reached a billion, but it still has that, you know, feel of a start up. It still has that feel of a... Jeff Bezos says this best, "A day one culture." Which is super critical, you know, we scale but you don't want to lose your soul and what made you special in the first place. And then you come down to the rest of the stuff, it's an execution machine. You know, it's an absolutely interesting category, especially in the day and the world we live in right now. You know, the proliferation of bad actors, security, backup, recovery, you know, everything you... Ransomware is starting to become you know, a meaningful threat to every company. So many different things coming together. This category is an interesting place. But that's not all, I feel that we are going to see this category evolve and shape very differently. You're going to see adjacencies coming and you're going to see in a couple of years or three years you're not going to just look at this and say, "Hey, it's backup and recovery." And so it's an opportunity to shape what is going to be a very important inflection point in this whole space. So a whole bunch of things. Excited about it. >> So flip question, why Anand? What did Insight see and the board see? What do you see as your key skills that they wanted here? Go after that opportunity- >> You should also get insight on this man. And you should ask them this question. I know Peter and Sokolov (laughs) >> So, you know, I don't know... I'll tell you where I think there's relevant experience is if I look at the future of Veeam. I think the first thing is we've got to think through what the next evolution of Veeam is. You know, there's a ton of work to do even in the path we are on, on data protection. And the team is absolutely brilliant at that. But how do you start to think ahead? How do you think about data management? How do you think about, you know, where are the adjacencies and how does it... How do you shape and reshape the category? You know, and I have some experiences in that. As I look at growth, Veeam has done a phenomenal job you know, 35,000 partners, an execution machine. I mean, just last year we grew ARR, you know, 27% we are sustaining that growth. But as I look ahead, you know there's huge opportunities to further accelerate our share in the enterprise to actually go work with creating multiple layers of partnerships beyond the very successful partnerships we already have. You know, how do you start to get GSIs in the mix? How do you start to get MSPs in the mix? How do you start to actually get to being a core part of the portfolio and platform of our primary storage partners, HPE, Pure Storage and so on. So reinvigorating and creating a multidimensional partnership strategy is key as well. And then just my experience in, you know I ran the enterprise for Microsoft and so those sort of experiences sort of are very relevant to our next step of the journey as well. And finally, you know I think the one thing which matters most for me and yeah, you realize... Again, I think we've forgotten what it means to have a microphone on. But culture, you know, I spent a lot of time in every company I've worked in, in contributing to the culture of what shapes and you know how do you create a purpose-led company and how do you get on that path? Which is a very, very important conversation inside Veeam. you know, and we already do that... You know, there's a huge focus on purpose. There's a huge focus on diversity. There's a huge focus on inclusion, but you know, the cultural aspect of Veeam attracted me to it. And I think my work and my passion for it attracted me to Veeam as well. So just a few of those things. >> Yeah, you speak from the heart, you can sense that. Dave and I were talking with Zias about platform versus product. Now you've got some experience with platforms, obviously, Microsoft, you know the amazing platform. RingCentral Zias brought up. And then I brought up HP, which actually never could figure out its software platform. So you've seen some successes. You've seen some, you know, couldn't ever get there. Do you see Veeam as a platform company? >> You know, the way I look at it is this. I mean, I may actually not answer your question directly but I'll answer the question. >> Dave: Okay. >> Which is, if you look at the biggest successes in the industry, call it Microsoft, Adobe now- >> Dave: Sure. >> Salesforce, eventually the path from a high growth startup to scale is platform and partners. That is the key. >> Dave: Ecosystem- >> So yeah. Platform and the ecosystem. So it all comes together. And so, yes, I mean, I think we already do that. I mean, we have a singular platform today for the multiple workloads we protect from, you know physical to cloud, to Kubernetes to the hybrid architectures the ability to actually, you know restore your data into any cloud, you know, back up from AWS restore into Azure or a physical data center. So we already have a robust platform in place but the scale or the growth from where we are a billion to the next set of milestones 2, 3, 5, 10 is going to be an absolute maturity and amp of platform partnerships ecosystem. >> That's a high wire act. When you talk about platform and scaling, you know, think about moving forward, when you have pressure to grow, often the easiest thing to grow is to acquire and add adjacencies that might not be as core to your core value proposition as they could be. How do you navigate that as you move forward in a world where... Look, Veeam was founded in an age when it was all about meantime between failure, recovery point, recovery time objectives. Now the big concern is malicious actors. So Veeam has been able to navigate that transition very well so far, but how do you do that? How do you balance that moving forward? This idea of platform is a desirous state to be in but you don't want to be a fake platform where you just glue a bunch of things on. >> It all comes down to thinking through where we see the world going from this point in time. How do you see technology evolving? How do you see the outside's, you know influences evolving. And when I say influences, it's, you know, just a euphemism for all the bad actors we expect to see getting even more active. So, you know, the way I think about it is either platform or acquisitions are not things you do piecemeal or point in time. It all needs to accrue to a larger strategy of how you create the ability for all of your customers to own protect, secure, you know their data and eventually create intelligence from it so that they can actually be proactive about it. So that, you know, if that's the thing, you know, our ambition is starting to become how do we sort of secure the world's data and help companies create intelligence from it so they can be proactive about it? You know, everything else sort of accrues from there the platform we evolve from the platform we already have, you know, stems from it. The acquisitions we may do, will do evolves from it. It all are... You know, its pieces coming together to the overall puzzle framework we've already created. >> Yeah. I have so many questions for you. And I want to get into a little bit of your philosophy, but before we do it, I want touch on the TAM a little bit more. You mentioned in the analyst discussion this morning that the market's fragmented. A lot of people think, "Oh, backup, storage, we'll just put it together. You know, Dell now or EMC brought it all together." But they're just dramatically different markets. You're seeing some of your competitors. One in particular is now kind of pivoting to security. It's an adjacency, but it's, yeah, I'm not sure you want to walk into that mess but it's clearly part of a data protection strategy. And you said you want your... My words, legacy to be a significant increase in market share, dominant position in the market. Even if it's number two, whatever, number one's nice, great. But much larger share than what is your 10, 12% today. How do you think about the TAM? It's so undercounted, I think. You know, we used to look at purpose built backup appliances, "Oh, it's a couple billion dollar market and it's a ceiling there." It reminds me of service management with ServiceNow. It's virtually unlimited TAM because it's data. How do you look at the TAM? >> How much time do you have? >> I know, I got so many questions- >> But I'll tell you this, right? You got to piece this question very carefully because I'll look at it in a variety of different ways. Number one, if you do nothing, if you just do nothing. I mean, today, as I shared in IDCs latest report last week we were joined number one, you know, for the first time we actually got- >> Dave: Yeah. Congratulations. That's a big milestone. >> That's huge, that's exciting. >> Dave: And that's revenue by the way. That's not licenses- >> Yeah. That's in share. But the thing is this, right? If, if you look at share, we are at 12%, you know as is the... You know, so 12% is not representative of how I think about number one. When you look at a market with a clear winner you expect to see 40 to 60% market share. So doing nothing is an opportunity to actually continue the path we are on which is taking share from every one of the top five significantly and growing as fast as we are. I mean, we are going to be on a path to, you know doubling our market share in the next two to three years. So there's share to gain doing nothing. And this is... You know what? This is the first and the most simplest aspect of TAM. Now layer in other aspects of TAM but just still stay in data protection. You know, talk about every single SaaS workload coming on. I mean, I shared 270 million Teams' users right now monthly actives. The TAM, if you were able to secure every one of those Teams' users and protect the data, I mean that's close to 6 or $7 billion. It's not factored in into any of the TAM numbers you see right now. Gartner talked about 13. You know, others talked about TAM being 40. I mean, but SaaS workloads, you know each of them are not factored in as much as it could be right now. So, you know, we are bringing in Salesforce, Microsoft 365. We secure 11 million paid users with Microsoft 365 backup. And so add all of them on, execute. We see a path to taking share and getting from here 12 to 25 to 40 and being an outsize number one. And then you'd come down to what you said, which is how do you think about adjacencies? Now, at Veeam, yeah, messaging is important, but unlike some of the competitors, we don't use words frivolously. If we say something, data protection, modern data protection, ransomware attacks, we mean it. And there's product truth behind it. We do not use frivolous security words to create a message and get attention and have no product truth behind it. That's where we are. We expect to see adjacencies come up. We expect Veeam to beyond execution and bringing in more SaaS workloads to look at the next layer of data management. We expect us to create partnerships which allow us to go do that meaningfully. And as time goes, you should expect us to be the prime influencer in reshaping this category with other adjacencies coming in. But we talk about it and there's product truth behind it. >> I wanted to get into your philosophy of management a little bit. I went to your LinkedIn recently and I loved the little graphic that you had. But I know a lot of people put up a picture of a pretty lake or mountains. I got theCUBE up there. You had a number of items. I wonder if I could read. You had a rocket ship, which was very cool. You had teamwork, you had innovation. I wrote down ABC, always be closing, Alec Baldwin. But everybody sells, I think is what it was and then keep it simple. >> Anand: Yep. >> I really like that. I mean, people going to... If they're going to evaluate Veeam they're going to go to your LinkedIn page. So tell us where that came from what your philosophy is as a manager. >> Yeah, no. So there's a few things and this is the philosophies which I put on is a meld of what I believe in and what Veeam believes in and has believed in for a long time which is life starts with a customer. For us, everything starts with a customer. You know, even the product creation philosophy 15 years back was, "Hey let's not just create some check marks and create a feature because someone, you know thought it's an important check mark to have." What is the value it creates for the customer? And is it different enough, unique enough, where, you know, it actually creates a moment where the customer sees the value impact their core business. That's where it all starts for us at Veeam. And then everything we do relates back to, "Is this moving the ball enough for our customers and for our partners and for our developers and users?" Everything comes back to there. Are we easy enough to do business with? You know, are we keeping it simple? Simple to use. A product should be really simple. It should be brain dead simple, you know are our processes such that, you know it's easy for us to connect with our partners, connect with our customers, connect with our users, you know it all comes back to keeping it really simple. And then, you know, I come down to a set of personal philosophies, which matters as well, which is, you know, how do we make sure that, you know, we used to say everyone is in sales, but we got to evolve it. Everyone is in customer success because we all know that it's not just the first sale which matters which was true 15 years back, what matters today is, yeah, the sale matters, everybody is there to sell. But what matters even more is the whole company rallies behind the customer's success at every step along the way. Because when you do that, you don't need to sell. You know, you get in through BBR and then we have a world of workloads to actually create value for the customer with, from, you know Microsoft 365 backup or, you know soon to come Salesforce backup cost. And we see that on net retention or, you know... And it's manifested in numbers, right? It's manifested in growth. It's manifested in net retention and it's manifested in NPS. I mean, Dave, I'm hugely excited about that, man. NPS of 80 where we are. I mean, you guys have been around for quite a bit. I mean, that's huge numbers. I mean, that's- >> Apple's- >> Apple was 76 or 77. And so eventually that is what matters more for me because it's... Share is important. And I'm excited about, you know, IDC saying, "You're joint number one." Hugely important, but that is a consequence. Growth is important. 25% ARR growth in Q1, super important but that is a consequence. What really matters is value for your customers. And the number one metric I look at is NPS, you know and NPS at 80, all the other things start to happen pair it with the engineering culture the innovation culture we have, long roadmap ahead. >> Veeam has made some... What appear to be, from the outside anyway, pretty successful acquisitions. Kasten is an obvious one. I remember it wasn't the first time I met Ratmir. It was maybe the third or fourth time we were at like a late night, Peter Bell party this Highland Capital at VMware. And we were walking down Howard Street. I see Ratmir and some of his colleagues, we start chatting. We, you know, got into a good conversation. I'm like, "What about an IPO?" He goes, "We're not doing an IPO. We don't need to do an IPO." And then several years later on theCUBE, he's like, "No, I'd be open to an IPO." And then of course the big acquisition happened. So you've got an opportunity here M and A obviously is a possibility. But what about the IPO in your future? Presumably, that's something Insight wants to do. What can you tell us about that? >> No, it's a great question. I was waiting when you were going to ask me that question. But this is what I would say which is, by the way, Veeam, at today's numbers, I mean, we shared numbers at the end of last year. 1.1 billion in ARR, 1.2 in revenues, 99.99% organic, right? You know, Kasten was the only acquisition we shared how Kasten is a blip at this point in time. And so the philosophy has always been organic. And as I look ahead, this is how I think about it. I think the pace of market change is going to be extreme. And so we will be a lot more open-minded, thinking about acquisitions for complimentary technologies which allow us to expand TAM and think about adjacencies, more to come there. IPO, see the good thing is this, a lot of companies want to enter the public markets to raise money, create liquidity. That's not the primary lens for us. And so the good news is that, you know we are incredibly profitable. We shared, you know, 30% EBITDA, you know, for 2021. So money is not the issue, but we do think that we entering the public markets is a good thing for a variety of other reasons, because when you are public and it comes with the, you know, transparency, which we believe we're already transparent. But it puts the focus on you. And that creates even better growth impetus. Especially as you go work with large enterprise customers they are a lot more amenable and you know and so we feel that it's a strategy of growth not a strategy of liquidity for us, but stay tuned. You know, I fully expect for something like that to happen sometime towards the middle of next year, to the end of next year. >> Yeah, we had a similar conversation with Frank Slootman they obviously were able to raise money. But wow, what a change since the snowflake IPO in terms of just the brand value. And again, so many questions. I thought your keynote was great, by the way. >> Anand: Thank you. I love the focus on, you know, ransomware, of course. I thought the bot jokes were great. Keep 'em coming. I mean, I really did enjoy- >> (laughs) Absolutely. >> It lightens things up. So thanks so much for coming on theCUBE, really appreciate your time. >> Absolutely appreciate it, Dave and Dave. By the way, I mean, it's funny, I mean about, you know, Dave and Dave, Dave and David reminded me of Thompson and Thompson, guess which comic book they're from? >> Thompson and Thompson- >> Thompson and Thompson. I don't know. >> Don't know. >> Tin Tin. >> Oh (laughs). >> (laughs) So you got to go read up. You guys don't look anything like that, but Dave and Dave, was an absolute pleasure. My first theCUBE and look forward to many more to come. >> Love to have you back- >> Absolutely. >> All right. Thank you for watching. >> Thank you. >> Keep it right there. TheCUBE's coverage of Veeamon 2022, 2 days of wall to wall coverage here at the ARIA in Las Vegas, we'll be right back. (upbeat music)

>> From the SiliconANGLE Media office in Boston, Massachusetts, it's theCUBE. Now, here's your host, Dave Vellante. >> Hello everyone, and welcome to this week's episode of theCUBE insights, powered by ETR. In this breaking analysis, I'm going to provide a little detail on the recent announcement that Insight Partners was acquiring Veeam for five billion dollars. There was a lot of information on the announcement in press releases and in news articles, so what I really want to focus on is what it means for the industry generally, and for the data protection community specifically. So, very briefly this was a five billion dollar exit for Veeam on top of a five hundred million dollar investment lead by the same Insight Partners last year. I think it had earlier investments, kind of a rent, with an option to buy. New management is being promoted from within, which I think is significant, to replace the two founders. Andrei Baronov and Ratmir Timashev are going to step down after the transition and give up their board seats. Veeam is a fascinating company. It started in the 2006, 2007 time frame, after the two founders, who met in college, formed and sold Aleta software to Quest. Then they started a company called AMUST Software, from which they created Veeam. You never hear about AMUST, but I believe it's the engineering and development arm of Veeam. Now the new CEO of Veeam, Bill Largent told theCUBE that AMUST is now a wholly owned subsidiary of Veeam and it won't effect any of the engineering assets that exist in Prague and in Russia. So this I the thing about Veeam, it's a very closely held company controlled by it's two founders, with a domicile in Switzerland. My understanding is Baronov is, well he's the technical guru, and he's a resident of that country in Switzerland, and the HQ there is very lean, the sizable engineering teams, as they say, is in Russia and Prague. Timashev resides in the US, and he's a marketing genius, who helped create this company, and it's always punched above it's weight class with, epic parties, and great products. Now interestingly, Veeam's rise, it coincided with the ascendancy of VMware. Veeam became the standard backup software for small to medium size companies within VMware shops. Their products are renowned for being simple, and working as advertised, and their customer support is outstanding by all accounts. But the US business lagged, despite the fact that most of VMware's business is in the Americas. You'd think you think if they super glued themself to VMware their Americas business would be higher. So a few years ago they decided to really go hard after the enterprise and they brought in Peter Mckay, from VMware, and he began to build up a US presence. But the enterprise business, it requires a lot of things that were kind of antithetical to Veeam. So think about long sales cycles, expensive sales people, belly to belly selling, with the expectations of, road maps, and clarity around enterprise feature sets. Now McKay was named CEO with Baronov, who continued to run engineering. So it was a bit of a culture clash. You got the sales oriented leader wanting the engineering team to turn on a dime and help close large deals, and satiate partners like HPE and Sysco, and you've got this genius co-leader, slash engineer, with an incredible track record of delivering features that the customer loves. So it really didn't work out and then Veeam scaled back on it's ambitions some what. At it's annual user conference in Miami last year, Ratmir came on theCUBE, and he talked about how Veeam's act one was all about dominance in virtualized environment. Let's listen to what he said about act two and then we'll come back and talk about it >> That was act one, we dominated it, we grew from zero to one billion within 10, 12 years. We added three hundred fifty thousand customers over that time frame, and now it's act two. What is act two? Act two is the, again, the new major industry transformation to a hybrid cloud. What are the similarities? Again, Veeam is in a great position because we're at the right time at the right place with a brilliant product. >> Now what we know is that act two is about a few things, one, as Ratmir said, hybrid cloud, multi cloud management, etcetera. But it's also about an awesome exit for it's two founders. Wow five billion dollars, five x revenue multiple, handing over the reigns is really the third thing this is about and creating more traditional governance structure for Veeam. Now they're moving from a governance structure that was closely held and opaque to one that is still going to be closely held, but ideally somewhat less opaque. Which brings me to inside partners. In the money world, you basically have a spectrum of investors. On the one side you've got banks, who are the most conservative. On the other side you've got VCs, now they're the most aggressive, of course. Now somewhere in the middle, you have private equity firms. Now they traditionally invest in companies, and they squeeze them for EBITDA, and they suck money out. But inside is more of a hybrid. They invest in a number of companies as VCs, they take a portion of the ownership. And to me they're more of a rule of forty PE, meaning it's not just about EBITDA, it's about growth plus EBITDA. So a rule of thirty or a rule of forty PE company, they can dial down EBITDA and go for growth, or dial up EBIT and moderate growth. So it's a great model. So I would expect Insight to bring structure and leadership to Veeam, with the goal of taking the company public at some point, because they like to sell to companies for all cash, I don't see a logical buyer at these kind of price points for this company in this market. It's growing market but it's still not a giant market. All right let's shift gears a little bit and get into some of the ETR data. Here's a narrative they put out recently that, to me, sums it up well. ETR said Veeam is one of the few vendors growing share among customers vs previous surveys in the storage sector. And that said, spending intentions are decelerating and continue to look poor in the largest sectors and Veeam trails Rubrik and Cohesity, although on a larger user base. So you can see by this statement that Veeam is of course doing well, but there are some cracks in the enterprise armor that I want to talk about and drill into a little bit. Now this now this Arline customer quote also, to me, sums up one of the reasons for Veeam's success. What this person said is if I want to do a Veeam back up to the cloud, it's basically point and click, very easy to use. Now I've talked to dozens, if not hundreds of Veeam customers, and they all say the same thing, it just works, that's kind of their motto. So this is the big reason why Veeam has steadily gained gained share over time. Now take a look at this chart, which shows the progression over time of Veeam's progress in terms of what ETR calls market share. Now remember, market share is a measure of pervasiveness in the ETR data set. And you can see, in the data, that Veeam has had a steady rise since ETR started tracking them at critical mass back in 2014. And you can see the steady decline in the survey for Veritas and Commvault and what appears to be, rapid momentum building for Rubrik and Cohesity, two companies that I said in my 2020 predictions breaking analysis that would continue to do well this year. Now notice I had to black out the January 2020 survey, which is ending shortly, so stay tuned for those results. But let's drill into Veeam's performance a little bit more. What this chart shows is a candlestick of net score and market share across all the respondents in the ETR survey for Veeam. Remember net score is a measure of spending momentum that subtracts customers that are spending less, the red, from those spending more, the greens. And it's represented over time by this blue line that you see. You can see that this blue line, it bounces around but it holds steady in the past couple of years pretty generally, and really in that thirty to forty percent range which you see on the left hand axis. Now that yellow line, is market share or pervasiveness, it also continues to climb steadily as I showed you in the previous chart. Now again this is amongst all respondents. Let's now take a look at this chart which isolates Veeam's performance in the largest companies, that enterprise push. Notice the pictures is somewhat choppier. Market share is okay, although unlike the previous chart, it's not steady. This is stunning. Peter McKay left in October 2018, and that's when Veeam really pulled back on it's big enterprise push, and you can see, there's a noticeable and steady drop there based on ETR data. So what's happening here is we are entering a new chapter for Veeam, act two so to speak. With new leadership and new governance. Danny Allen is taking over CTO, he previously ran strategy, Bill Largent is going to be CEO, the HQ is moving into the US. So in my opinon, Veeam's issues in the US have been more execution related than anything else. Veeam is a leader. So partnerships with Nutanix, Sysco, HPE, NetApp, should continue to improve and be somewhat productive, actually largely productive. Let's talk a little bit about Veeam's architecture, and a point of discussion that you often hear in the community. Veeam's a Window's based architecture. Now is that a blessing or is that a curse? Well the pros are that the Veeam team came out of a Windows world, and they know the platform very well. They are amazingly good at adding function, without screwing up performance somewhere else. You saw this a couple years back when they were making a big push on the enterprise and they increased the file sizes, and the number of objects that they could support. Another example is when Veeam added cloud back up, it was a really good product, version one. Unlink many products, when they first tried to port to the cloud, that wasn't the case. Recovery from the cloud is very tricky. Things are out of sync, you got a metadata challenge, and generally Veeam was able to achieve consistent levels of performance with it's cloud product. Now flip side of this, is that if you look at most, if not all, modern architectures today, are based on Linux. And once you start getting into mulit cloud, and cross cloud management, you're going to bump into and be interfacing with lots of Linux based systems. So Veeam is going to have migrate code, and maintaining consistent performance is going to be tougher. But as David Fourier, my colleague points out, there are many many ways to skin a cat, and Veeam's engineering team has really, based on it's track record, has proven that it can solve tough problems, and really deliver a great product consistently. I think the bigger issue and challenge for Veeam again, is execution in the US, and of course the enterprise. Customers in EBC's executive briefing centers, they want to see road maps, and enterprise features, and specials. And so we'll see, if that's something that Veeam has an appetite for. If they do, and I'm one of the incumbents, I'd be worried that Veeam could do a land and expand. Where Veeam isn't as strong in large enterprises, big companies they buy from Veeam. Maybe it's a smaller division, or remote location, but it's not like they don't do business in large accounts, they do. So in a way, they've already landed and they have an opportunity to expand, so that's something to pay attention to. If I'm an enterprise customer, I would be pressing Veeam on it's roadmap, and having them clarify their vision around hybrid and multi cloud management. Will Veeam be more transparent and willing to do specials for the enterprise, and their big partners, who expect them, when they say jump, they expect Veeam to say how high. How will Veeam's culture change, is the other thing I want to focus on. As the two founders step down, are they going to be able to main their engineering ethos, and customer loyalty, and can they figure out the enterprise. I'm a big fan of founder lead companies, when founders leave cultures often change. When founders stay, they're intensely committed, even beyond great CEOs who aren't founders. Look at Michael Dell. He went to the mat to keep his company against the great icon, now look at Dell technologies, after the EMC acquisition, it was completely transformed. Look at Oracle, look at the lengths that Larry Ellison goes to win. Compare that to a great CEO Joe Tucci, when he was at EMC, but you know when he was done, he was done, it was over. It wasn't his baby. So my point is how will this effect Veeam's culture and prospects in the long term. For me the bottom line is the big opportunity's in the US. And that's about execution. And I expect with the move to US HQ, new management, I expect they're going to see consistent market share gains, that's going to continue. The enterprise however, that's going to take longer, it's going to require more patience and more money. And with Veeam transitioning from essentially the two founder's lifestyle business into a company that's really built for an exit, they're going to have more money to invest, greater transparency, I hope, and a path to really build on their past successes. So this Dave Vellante signing out from the latest episode of theCUBE insights, powered by ETR. Thanks for watching everybody and we'll see you next time. (upbeat music)