>> Live from Las Vegas, it's theCUBE covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> And welcome back here on the Sands as we're at the AWS re:Invent day one of our coverage here. We're here Tuesday, Wednesday, and Thursday live here on theCUBE as we continue our coverage from the show. We're Hall D again, if you're in the area, come on by, say hi to Justin Warren and myself. Along with Justin, I'm John Walls. We're joined by Andy Langsam, who's the COO of N2WS. Say Andy, good to see you today. >> Good to see you too. >> Thanks for being here. And Danny Allan, who's the Vice President of Product Strategy at Veeam Software. Danny, good afternoon to you. >> Thank you very much. >> Now we could talk about a lot of things, Canadian citizenship, fractional ownership, a lot of great conversation. So let's talk about data. And of course, the paramount need these days, right? Everybody's got to know I'm alright, I'm secure, I've got this big warm blanket around me. What are the two of you doing to give people with those kind of concerns the ability to sleep at night peacefully, knowing their data's safe? >> Well, you know N2W was founded on the premise of not to worry, that was the founder's vision. And if you could convince somebody that was doing the backup in disaster recovery not to worry, that was a great way to get started. But we're excited today, we've announced N2WS Version 2.4 and it's focused on taking your EC2 snapshots and putting them into S3's storage to lower your cost by up to 40% and 50% and so that's one of the things that we're talking about today. >> Danny. >> Yeah and so if you expand on that, so this is data protection for the cloud and one of the things historically we've focused on as well is data protection in the data center. So that brings the two together and gives you data protection holistically, across wherever your environment happens to be, and goes beyond that, not just data protection but how can I take the data and do more with it? And so we're excited and it seems to be resonating with customers. We have, what, 189% year over year growth on the cloud side. It's just huge, it's a booming business. >> I would assume that you don't have any problem getting people's attention these days, I would assume. >> No we don't, you know, at the booth, it's just amazing, you know, eight, nine thousand sign up batch scans and people all wanting demos and wanting trials of the software. You know, any time you can talk about cost reduction from five cents a gig on EC2's storage to two cents on S3, it's a tremendous savings for our customer base and so they're very excited. We did a survey recently and over 50% of our customers spent over $10,000 a month on storage cost in AWS. So if you think about that and if they can save 40% on that, that's real savings, more than the cost of the software alone. >> Sure. >> Yeah. >> One thing about cloud that often sort of went past people because they were used to the data center and they were used to how they protected their data in the data center. And cloud kind of changed the way that you had to do that and you have think about them in a slightly different way. So clearly N2WS is part of the solution to that. But when you have people who have a bit of data in both of those systems, how do you help them understand which techniques they should use for data which is in the cloud compared to data that's in their data center? Or am I able to just use the same techniques and just go, "You know what? "I'll take care of you and we'll just "turn it on and it'll magically work for you"? >> It's not the same techniques but it's the same platform. And the reason I say that is in the cloud, here in AWS for example, you don't have access to the hypervisor so you can't do a snapshot of the hypervisor, you have to call an API and say, "Gimme a copy of the data." If you're in your own data center, you say, "Take a snapshot of the storage "level or at the hypervisor level." So there's different techniques but at the end of the day, it's still data protection, and with a single platform, that's what's so exciting about this release, Backup and Recovery 2.4, is you have a single platform that you can manage data protection both on and off premises so that you can leverage where is the best place, location, for this workload, and I can protect it across no matter where it chooses to live. >> Yeah, that is something that we've been hearing all day today here at theCUBE is that people are talking about putting their data wherever they want it to live. It could be in the cloud, it could be on their own data site, it could be out at the edge. So whatta you see as the vision, like, where are customers going with this, where do we want to put data? We heard for a long time that we should migrate all of our applications into the cloud. Clearly there are a lot of organizations who are doing that. There are some who have put some things into the cloud and they're actually taking them back out again. >> Sure. >> Where are you seeing customers moving their data around? >> Well, the answer to that, of course, is it depends. There's no single answer for everything. What I say is the cloud is excellent for certain things like variable based workloads or you need a mass amount of compute for a certain amount of time. What people have tried to do sometimes is just lift and shift, take what's on premises and move it to the cloud, and sometimes what ends up happening is they put it back on premises 'cause they realize hey, the cloud's not a charity, they're actually putting in margin there for that brick load. >> They're good. >> So there's use cases for all of this. I think actually what gets exciting is as people design for the cloud, use Lambda and serverless-type functionality, that will become a lot more sticky and so our focus is wherever the customer chooses to run the workload, we're not going to dictate it one way or the other. In fact, one of the great things that we enabled is portability. If you choose to be in point A today, you can move it to point B and back again, so we give that portability that ultimately allows the customer to solve what their business need is. >> You mentioned the customer growth, I think it was like 189% you were saying, is that net new customers to Veeam completely, is that Veeam customers who are growing into using this new product and putting their data in the cloud, where is growth coming from? >> So that growth, that growth has been since we've been acquired by Veeam back in December, it's almost been a year now we were acquired by Veeam and we've been, being acquired has allowed us to focus on the customer and innovation versus going out and raising money from investors as a small company, right? And so we've had 189% growth in our business in terms of revenue since we've been acquired. And it's really accelerating both on the growth side in all sizes of customers. We've got customers recently like Notre Dame and Cardinal Health. And then we have people getting into the cloud, you know, for the very first time and they go to the Amazon Marketplace, they search through the catalog, they find the N2W products, they download it and, well, they provision it and onward they go. >> Yeah, you mentioned Cardinal Health. >> Yep. >> Let's talk about the sector in general. I mean, very unique concerns, obviously, when it comes to whether it's protecting imaging or patient information or whatever it might be. What have you seen in terms of addressing the needs of that sector because obviously this is an area that's growing, there's more capability than ever, and yet our concerns in it are growing with that. So I mean, what do you guys see in that space? >> Yeah so I think, you know, in the health care sector in general, I think what they're really concerned about is the compliance requirements. It's not just backing up the data but it's the requirement that you have a back up and can restore and you can recover from a disaster or from internal hacking or from whatever, an outage, whatever it might be, and if they don't do it, the repercussions are very, very high. And I think that the whole world with GDPRS and things like that are all coming together to dramatically raise the requirement to be more secure than ever and your backup and disaster recovery strategy is paramount to them. They won't be talking about, "We're going to do this." Some customers say, "We're going to do this ourselves, "we'll write our own code." We won't see that in the health care space or the financial space. >> So I see kind of three interesting areas. One is, they typically will have very specific applications like APEC and Meditech that they need you to protect that are aware of that type of application, so that's one part of it. The second is, there's a lot of certifications required to deliver health care services, so you HIPAA and HITECH and, you know, BAA certifications and all these things, and that certainly comes into play when you're talking about the cloud, so you need to have that conversation. And then lastly, ransomware comes up a lot because there's been a lot of ransomware attacks and malware attacks specifically directed at the healthcare industry. So those are the three kind of areas that we have probably the most conversations about. >> Right, yeah malware has been the best advertisement for backup and recovery, ever. It's kind of fabulous, in a way, in a scary way and we don't actually want to encourage this kind of behavior, but for those of us who have lived and breathed backup for awhile, it's like, "Finally, "people can take this seriously." So that's something that people have realized that, okay, I need to have this. What are they looking at next? Where are customers looking to Veeam and to N2WS, what are they looking for you to add next? >> So I'd say the next kind of big step, so to date we've been very much reactive as an industry, right? "Help me protect my data." "Let me get it back" when they recover to the cloud or move from one cloud to another cloud. Now we're getting customers saying, "You have all this data, you understand the context of everything that I own, help me get smarter in my business so that I can drive the business to make decisions more quickly." So, "Give developers a copy of the data "so that they can iterate on it more quickly." "Give a copy of the data to my GDPR experts 'cause "they need to analyze the data and do something with it." And so we're moving away from just being reactive to business needs to being proactive and driving the business forward. And I think where it gets really interesting, as we go down the road and now this is buzz words, I admit, but around machine learning and artificial intelligence, we're actually, we leveraged a lot of the algorithms that are existing in clouds like AWS to help analyze the data and make decisions that they don't even know that they need to make. And that decision could be, "Hey, you need to "run this analysis at two in the morning "'cause the instances are cheaper." That type of predictive analysis helps the customer reduce cost but also drives the business forward. >> Yeah, so how do you move into that kind of advisory space from a more traditional that we'll protect your data. How do, do customers come to you and say, "Actually, you have our data anyway, "why don't you do this for us?" or are you going to customers proactively and saying, "Hey, we can do this for you, "we have access to this data and we can tell you that, "we can provide these insights to you, "would you like some more of this?" Which way does that conversation tend to go? >> It's a bit of a mix, what I'd say is that the data protection face or the storage, you know, the traditional IT person becomes kind of the help desk and then because they've enabled self service recovery, file level recovery, item level recovery, these other areas of the business come in and say, "Hey, can I use that self service to do X and Y?" So it's a new buyer, it's a new constituent, but they're actually looking to IT to enable them to do more stuff with the data. >> Okay, so it's basically, "I want to interact with you "in a similar way that I'm already doing it, "and you've proven your work in this area, "maybe you could do it over here as well." >> Exactly. >> Sounds like a great opportunity for growth. >> And not just on legacy, I mean, one of the interesting things with the N2W software is we enabled, for example, data protection on DynamoDB. So people think of databases and they think SQL Server and Oracle but we can do this, even in cloud RDS-type workloads with DynamoDB, to help them drive cloud hosted workloads faster for the business as well. >> Well, you mentioned Notre Dame, can we have any connections on the playoff ticket situation, can we -- (laughter) >> I wish. >> Just want to make sure. Gentlemen, thanks for being with us and let's get back in maybe three or four weeks, we'll talk about that, okay? >> It'll be great, yeah, it'll be interesting to see who the final four are going to be. >> That's for certain. Thank you both -- >> Thank you. >> Find the information, really enjoyed the conversation. Back with more here from AWS re:Invent, we are live in Las Vegas, Nevada. (electronic music)

>> Live from Miami Beach, Florida, it's theCUBE covering VeeamON 2019 brought to you by Veeam! >> Welcome back to Miami, everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante. We're here at the Fontainebleau Hotel. VeeamON day one of two-day coverage of the Veeam conference, very swaggy hotel. Dave Russell is here. He's the Vice President of NFI Strategy at Veeam. David, good to see you again. >> Good to see you. >> Thanks so much for coming onto theCUBE. >> Yeah, thanks for having me again. >> You're very welcome. So let's see, you're well over, let's see, a year out, just about a year out of Gartner. Right? >> Yeah, yeah. >> And so okay you've been injected with the Kool-Aid fully, I presume, right? >> There you go, in the green, yes. >> But we're still going to talk a little bit about the magic water, but before we get into that, talk about your first year here. >> Yeah. >> Your impressions. Do they meet, exceed your expectations? >> It exceeded my expectations, but I can honestly say I'm not doing what I thought I was going to be doing here, but it actually turned out to be better. The other thing I will honestly tell you is I'm now on Pacific Coast time at the moment. Arizona, we're too unsophisticated for Daylights Saving, right so I'm either Mountain or Pacific but I'm Pacific now. But by 10 a.m. my time, I pretty much what I thought I was going to do that day is out the window and I'm doing something else and it's fun though. I mean now especially with the investment that we had earlier in the year and the cash reserves we ended last year with, looking at a lot of partnership capabilities, looking at ecosystem activities, certainly involved with customer activity. We're redoing our marketing and how we're focusing our go-to-market so it's a whole variety of things that sort of change hourly. >> So on the, I think we just talked about the M&A side. You've always been a dot connector in your, right? Because you talk to all the vendors, you talk to all the customers and you could see the picture. You have a huge observation space so part of your job on strategy is to try to what? Figure out where the gaps are. >> Yeah. >> And then drive strategy around do we build, do we buy? Maybe you can talk about that a little bit. >> Yeah and it really does net down to what you said. It's a build/buy decision. It's an acceleration to market kind of decision and then the hard part is what are you willing to trade off and of course the real answer is as little as humanly possible. But you have to decide, just because you can do it, just 'cause you have the money doesn't necessarily mean you should pull the trigger. So if anything, it's curious because people like myself and a couple of my colleagues, we almost are more discerning. So we look at, okay, the technology, is it really viable? Do our due diligence, right? But then we also look at well, does this fit culturally? Is the integration point really there? Is the customer value really going to be significantly improved and if you cannot answer that very favorably, then keep the money. >> So you worked at IBM for a number of years, you worked at Gartner for a number of years. Now you're back working for a vendor. >> Yeah. >> Compare and contrast those roles. I mean Gartner, you do a lot of writing, you do a lot of traveling, you talk to a zillion people. I'm sure you talk to a lot of people here too, but you're coming at it from a very biased perspective whereas Gartner of course you're unbiased. You're serving the end customer. So talk about the difference in those two roles. >> So I approach it a little uniquely in that I'm biased. I mean I'm paid by a vendor, right? And so there's a certain inherent bias in there, but I go into a customer conversation and say "Maybe you shouldn't be using Veeam for certain things." So I'll give you an example. We have Unix capabilities with Solaris AIX. There are other vendors that do that even better than we do. They have rich application integration. If someone says that's my number one problem, honestly we're not your best choice. Now the reality is most of the world is moving towards more physical and virtual Windows and Linux. So I'll come in, say, a large enterprise and I'll say, "Okay, if you're like most shops," and I'll always undersell it. "Like probably 85% of your workload "is physical virtual Windows Linux." and they always interrupt me and go, "No, no, no, it's 92%." Like, "Okay, well we can help with that 92%." >> Yeah, yeah. >> The other 7%, I'm honestly going to tell you, we're not best of breed. >> Yeah that's a safe balance view that the AIX Solaris piece. >> Series. (Dave laughs) There's certain things. >> Yeah. >> We want to stick to our swim lane. We think it's a pretty wide lane, but there's no reason to come out of it. >> So your role as strategy, talk a little bit about how you're turning that strategy into action and specifics at Veeam. >> Yeah a big part of it has to do with cloud. >> I know that's the word that we've been talking about for a long, long time. So there's the aspirational aspect of Cloud and the operational. The aspirational is I want to be able to move in and out. I want mobility, I want the ability to exit. The operational is I want to be able to do this efficiently, meaning I want to be able to either send data to the cloud, my on-prem backup or I want to be able to protect SAAS-based workloads or infrastructure as a service workload so cloud-native workloads and then over time, I might want to be able to leverage that for something other than availability. So how can you rapidly make the data and only the portion of data that I need available to me when I need it? >> I was taking some notes during the key notes and I was just doing like a little, not really a tag cloud, but I was trying to identify as I heard them and grabbed them, the attributes of cloud data protection. I want to throw some out to you. You tell me. We'll play kind of word association, I guess. So I have fast recovery, API-based, open, simple, transparent, data-oriented, automated, cloud pricing, federated to accomodate the edge. Are these some of the attributes that we should associate with cloud data protection, maybe some of the things that I'm missing. How do you look at the attributes of a company and its products providing cloud data protection? >> Yeah so a big part of it, I actually like the phrase hybrid cloud even better than people say multi-cloud. The reason I like that is because hybrid presumes that you can have on premises as well. So like if it was the Dave and Dave company tomorrow, we'd probably be born in the cloud. Everything would be software as a service. We'd get some public cloud space. Now if we'd been in business for 20 years, we've got investments that we've made and we don't want to get rid of that any sooner than we have to. So hybrid cloud I like, but I think you nailed it in that what do every one of those attributes have in common? It's trying to get your most precious resource to you in a way that you want to consume it with as least amount of friction as possible. We want to reduce the aggravation associated with being able to access that rapidly. >> When you think about the customer conversations that you've had at Veeam and even going back to your Gartner days, I've always felt this notion of not hybrid, I see hybrid and multi-cloud as different. I've always looked at multi-cloud as multi-vendor. >> Yeah. >> Yeah I've got line of business, I've got shadow IT, I've got different IT projects and I've got multiple clouds and it's just, to me it was always less of a strategy than sort of this is where we are and now people need to put together a hybrid strategy. So IT's been asked to come clean up this mess as it always is. What's your take on the hybrid landscape and how we got here but more specifically, customer strategies when you consult with your customers? >> Yeah you're right that there's a lot of departmental buying, there's a lot of, in some cases, it's best of breed so I'm very willing to go look at multiple providers because I didn't sign up to go deploy the third best solution. Everyone wants what they think will be the most appropriate tool for them and rightfully so. So I think that's how we got, to your point, we didn't have a strategy that said I want 10 vendors. We arrived at an implementation choice that resulted in 10 vendors being deployed and then to your point further, then we had to layer on something on top of that. That's really where we come in and simple as it sounds, we really want to promote choice, choice of infrastructure, choice of cloud, choice of hypervisor, choice of operating system. >> So great discussion vector is the best of breed versus sort of integration. >> Yeah. >> And my question is that's been a decades-long. >> Yeah. >> Sort of trade-off that people have made. You see it in the software business, the hardware business and all through the industry. Is the API economy changing that. Can you be both, I mean Veeam, let's agree. Veeam is a best-of-breed provider. While your portfolio's growing, you're a billion-dollar company, you take a company like Dell who's got this ridiculously large portfolio. They can come into a customer and say well even with services or at IBM, we can wrap the big blue blanket around you and integrate everything. With the API economy, does that change the game on that argument of best of breed versus integration and convenience? >> It's a nuanced answer. The answer is a little yes and a little no. >> It depends, right? >> Let me decompose that because that's a cop-out, but the "it depends" aspect is really, APIs are wonderful to create an ecosystem and other integration points. If that's about offering your expandability to do something, that's a positive. If that really means that well because I can't deliver what you need, you got to go and write it yourself, that is a negative. So if the API is leveraging something for even greater value but beyond what the tools are originally designed to do, I think that's net positive, but if you have to exploit the API to just to get the product to work, why did I buy your product when I have to go hire someone to write code to work on your product? That's, you don't want that business. >> Okay so the last Gartner Magic Quadrant that came out was one that you sort of spearheaded back in 2017. It was like this perfect storm of backup analysts leaving Gartner and so there's been a little bit of delay in terms of the new one coming out which is coming our shortly as I understand it, but one of the observations that you can make if you look at the 2016-2017 Gartner Magic Quadrant is that Veeam moved from lower right to upper right which is rare. Can you explain that a little bit? You were saying that it usually goes in a different pattern. Elucidate, please. >> Yeah. Yeah so the magic in the Magic Quadrant is if you could actually jump from one quadrant to straight to leaders and that would be a very atypical progression. Usually it's a backwards Z. You come into the lower left, probably get over to the lower right, fall back, but go up to the upper left and then maybe you get to leaders in the upper right. The magic part in Veeam, the thing that they were able to do is go from visionary lower right to leader upper right. >> Okay and why do you think they were able to do that? I mean there are numerous attributes, but presumably 350,000 I think is the number of customers helped and so you've got a lot of references and proof points, the technology itself, but it's rare. Why do you think Veeam has been able to succeed in that regard? >> I think it's because Veeam has been good about getting answers to the most pressing problems. Again Veeam doesn't do everything. It doesn't support every single operating system, but the vast majority of the concentration of where customer issues are and where customer environments are getting deployed at, we can address very well and actually this weekend, I got here Friday night. So all day Saturday, all day Sunday and yesterday 'til 5 p.m. I took our SE training and so I've deployed Veeam, worked with active directories, all kinds of things for 72 hours basically and it was really that easy to use. In fact, my most difficult thing is I stayed in class until 6:30 at night because I'd never done active directory. I've never been an exchange admin before so I had to kind of come up to speed on those tools a little bit, but once I got that, the product was incredibly powerful, but also very intuitive. So you still have a little bit of that independent analyst DNA in you so I'm going to ask you to try to put that independent hat on. When you think about Veeam's traditional base of SMB, they're very successful there, obviously superglued itself to the virtualization trend. The last couple of years, Veeam has tried to move up-market, develop some relationships with some large players and has had some success there. Is the product well-suited for that larger enterprise and where do you see that going in terms of the up-market progression? >> Yeah so in theory, that's what I'm here to drive, the enterprise word is in my title, but in reality I focus more broadly than that. But if I just think about enterprise, I ran the numbers last week and company inception to date, we've actually derived over $2 billion of software-only revenue from the enterprise market and that's been accelerating. Now in 2017-18 and the first quarter of this year, almost $1 billion. So we're moving and we're moving fast. We had our sales kick off like most companies do. January, go to sales kick off and Ratmir says, "Hey don't chase just the big deals, the $2 million deals. "We've never sold a $2 million "without having a $200,000 deal first." The very next week, we got a $2 million deal on the first paper so he shot low. He should've said five million, but the interesting thing about Veeam and to answer your question, I think we resonate with the kind of challenges a large enterprise has. We allow them to move at their own scale if they want to move in a very large fashion, they can with Veeam. I would honestly tell them move as appropriate for you. As assets age, as you're willing to take on the change in an environment, do so, but I think Veeam is interesting. It's the same piece of software that I installed on my laptop this weekend that can also go to a Fortune 100 company. The same piece of software that manages 50,000 agents, we have at one shop, 50,000 Windows agents. We can do that with same code base and the only thing that's different is we just horizontally scale out how we deploy the capacity and then how we deploy the mover agents. >> I tweeted out this morning, Ratmir was standing in front of a chart with all these features and over the time and that's been part of the hallmark of Veeam is not checkbox features but real substantive features and you've had a consistent progression. Even Ratmir said, we don't have a big long-term roadmap that we share with our customers even internally. Yeah we have a direction and a vision, but very focused, almost like a bit of an Agile development methodology but the point is that, and you see that some companies are really good at this, some companies, not so good at this, but just consistently delivering features that are in-demand, that customers want, listening to their customers and just nailing it and that seems to be the hallmark of Veeam and as they say, some companies just don't have that in their DNA. Your thoughts on that? >> Yeah I think what it really comes down to is at the end of the day, every developer thinks like a customer and they do that because they spend a lot of time on our Veeam forums and I'll be honest, when I was a mainframe backup developer, I didn't talk to that many customers. I was just writing code and I didn't know how people were actually putting the product to use in production. I didn't always know what feature might be most helpful for them. >> You were guessing. >> I was trying to think of the art of the possible, hopefully an educated guess, but I was really just trying to say what might be good, what might be of resonance versus actually having someone goes on a forum and says Veeam, what I would like you to do is X. That's one of the reasons why we do have, to your point, we don't have a 10-year roadmap where we say this feature is coming in 12 months, this feature is coming in 24 months. It's fluid and in some cases, we actually moved up delivering our physical agent management by a year because we started selling more and more of those and people said I need that feature functionality faster. We're willing to trade-off some of our other feature functionality. So if we can be, as long as we can continue to respond to the market, I think we're well-positioned. >> How does a capability like that surface itself? Obviously by talking to customers, but how does it get into the development pipeline so quickly? >> Yeah well in some cases, we've got a huge amount of not just, our part of R&D. It's the research, it's experimentation, it's incubation of new things. So when we find that sweet intersection point, then we can quickly operationalize that. In other cases, we just have to be nimble. We have to react fast. >> Is it a command and control culture though where somebody says okay this is what we're doing or is it more sort of the team gets together and says oh this really makes sense based on what the customers are telling us, let's go. How does that decision get made? >> Yeah well ultimately it is a command and control in the sense that our co-founder, one of our co-founders runs sales and marketing. Our other co-founders runs R&D and they ultimately get sign-off on their respective areas, but it is collaborative in the sense of we do bring forward, here's what we see in market, here's what see in our customer forums. Here's what our ecosystem of partners are telling us, here's our view of the top five things we ought to go do. >> I was struck by the other slide that Ratmir had. It was the $15 billion slide and it was probably, backup and recover was maybe I don't know seven out of the 15 if I remember, but there were all these other segments. It was sort of analytics and disaster recovery and data management, all new pockets of opportunity. $15 billion today, obviously growing with especially the cloud. How do you see that landscape and how does that affect the way you look at strategy? >> Yeah so I actually put that bubble chart together. >> Oh, I like it. >> The rationale between the bubbles, we have core, we put backup in the middle because that's what we do but also that's how we ingest data and now we can do other things around it. So the reason for those bubbles and they were of varying sizes and the bubbles were sort of in and out of to varying degrees the main backup bubble according to how much intersection we thought as a company we could have with that. Where we thought we could add value, where we thought there was an ecosystem potential. So for example, analytics. We're not going to become the next best analytics company tomorrow, not even years from now. We could partner and we can provide data and we get better access to data to be able to do that. So we'd want to facilitate that. In other cases, maybe we really do want to go own and acquire. >> Well and so to your earlier comments there, I didn't use the term, the phrase land and expand, but that's clearly what you guys are doing starting with the $200,000 sale and growing it to a $2 million sale. So those bubbles are potentially cohort sales. >> Yes. >> That you can sell sort of like bananas in bunches I like to say, right? >> Yeah. And part of that is who do you sell that to. And so if you're able to go and address some of those ancillary bubbles or markets, now you've got a different entree point into the organization. If you're already involved with an organization, now you can offer more value because you can get more out of your data that you've already protected. So it opens up new conversations for us to have. It opens up entirely new buying centers for us too. >> Well how is the role of whom you sell to changing? I mean it was backup admin historically, right or maybe a Veeamware admin. Veeam admin. How is that changing? >> So greatest example I would tell you are events. So we acquired a company last January or a year ago January called N2W Software. So they're predominantly at Amazon re:Invent conferences. You go to Amazon re:Invent and no one's heard of Veeam and if anyone's heard of either of the two companies, it's definitely N2WS and someone's seen it in the marketplace. That demographic tends to be totally different from the demographic if you go to the on-premises data center type of conference where they have heard of Veeam and it's a very different sort of mindset. To your point, they grew up in a very different landscape. Now instead of someone who's well-steeped in server storage and networking and maybe majored in one, possibly two of those things, now you've got a generalist where he or she is probably in their 20s, has a very different point of view of what it should take to get something working and has a very different view of how they want to be sold to, how you can go and reach them. >> So at the cloud show, there might be a development persona. >> Yes. >> That you're selling to. Obviously VMWare, VMWorld, we know what that is. It's IT guys, right, is the predominant and how do you see cloud changing that? Is it cloud architects or sort of cloud leaders? CTOs increasingly? Data Protection becomes more and more important to digital business. So how are you seeing that role change due to cloud? >> So right now we have to basically have more touchpoints. Our typical legacy fan of our customer, our customer base, our product's sweet spot still remains and it's in some cases will pull us into the cloud. In other cases, we have to go talk to someone that's entirely different. But again, that's more of an administrative view. But to your point, going up the stack now, if you go to the not even Vice President of Infrastructure, you go to the CIO, he or she says, "I am tired of thinking about boxes. "I am tired of thinking about where this resides. "I want to think business outcome." So for us that's actually a great conversation because it all comes back to data. That's what we're in the business of doing. We capture, protect and move data. >> So that brings it back to strategy. We got to run, but summarize in your words, just sort of the strategy of Veeam and where you see this whole thing going. >> Yeah I will simplistically say it's more of the same. We want to continue to offer what we think is a best of breed solution for on-prem and increasingly cloud availability, but also we want to offer real customer value in terms of now being able to leverage that data, get more value out of that whether that's DevOps, running analytics against that, security test patch, whatever it may be, we want to be able to give you just the data you need, so have granularity, and offer speed and ease of use to do that. >> So as data becomes more and more important, you're seeing companies go beyond backup, trying to get more out of there, their backup, moving to data protection, data management, not just an insurance policy anymore. Dave Russell, thanks very much for coming to theCUBE. It was great to have you. >> Thank you so much. >> You're welcome. All right, keep it right there, everybody. We'll be back with Peter Burris as my cohost. We're at VeeamON Live from Miami. You're watching theCUBE. (upbeat music)

>> Live from Las Vegas, it's theCUBE, covering VMworld 2018. Brought to you by VMware and its ecosystem partners. >> Hey, welcome back everyone, this is the live CUBE coverage here in Las Vegas for VMworld 2018. Two sets, nine years of coverage, this is our ninth year. Lot of games changed, we've seen the movie play over and over again. Infrastructure's supposed to be dead, it never goes away. Storage is supposed to be dead, never goes away. Data protection, recovery, never going away. It's only getting better, the cloud is here. I'm John Furrier with Dave Vellante. Next guest, Peter McKay, Co-CEO and President of Veeam. Big party, tonight. Massive success story in the industry, year over year. They kind of kept it quiet, I don't know why, but then the past two years the numbers started to come out. >> Yeah. >> The chart is up and to the right, competition is going down, congratulations. >> Thank you. >> Where's the growth coming from, what's the success? >> You know, I mean, we've been on a trajectory, as you guys know, for many years. Because we're not public, because we're not looking to go public any time soon, we never published the numbers. But, when we realized: look we got a lot of success going, the momentum's going, we think people should know what's happening, especially our customers who invested. So, we've just continued to execute really well on a multi-segmented approach from the large enterprise, the medium-mid-market, and the SMV. All of those three segments are growing double digits. You know, different value prop, different message, different solution in each one. Kind of the way we package. But they're all going really well. Europe, Americas, and now APJ is growing faster than any other region. >> Well, it's interesting, you said this morning, was people have the perception you guys were SMB and you said, oh, we just went after the-- >> The virtual buyer. >> The VMware guys, the virtual buyer. I think you said about a third of your business is small, about a third is commercial, and about a third is what? >> A third is the breakdown of our revenue. It is true that we didn't focus on a partiular market. We focused on whoever bought Vsphere should buy Veeam. And so whoever sold it, whatever the channel partner sold it we wanted them to sell Veeam. Whoever bought it, we wanted them to buy Veeam. It wasn't that complex, it was fairly straightforward. Just execute on following wherever VMware went, we went. We became the number one backup vendor, virtual backup. Number one VMware backup, now we added Hyper-V, and now we're in a crop-o-lis with Nutanix, which is the latest. >> Is the type of buyer now changing as you sort of enter some of these new markets, go more deeper into the larger enterprises? >> Yeah, it's gotten a lot more complicated, today. You remember we bought this company N2WS, which is really interesting. It's native backup for AWS. >> Right. >> And that was fantastic. We started as an investment, we bought it, and this business just keeps doubling and doubling. And really what it taught us when we had an event that we would go to, all the people, our customers were going to the booth, and they didn't know who Veeam was. So we we're like, wait a minute, you have Veeam in your business, well we didn't know that. So they were totally different buyers. They were looking to back up for the cloud offering than traditional backup or even your virtual backup. And so it really expanded an opportunity that we never knew. Hey, this is a whole group of people we weren't talking to. So that has expanded, you've got that group. You know, your traditional backup buyers, your virtual. But now it's line of business, it's much more complicated than ever before. >> So you're sharing some numbers. You mind sharing how many customers you have, the kind of renewals and what the booking numbers look like? >> Yeah, we ended the year at 300, we passed 300,000 customers and we're up to what, 320 or so, now. We added about 133, on average over the last two years, 133 per day, 4,000 a month. >> Customers? >> Customers. >> New Customers. >> New customers. That has been our kind of trajectory. It all goes back to, we have a 73 Net Promoter score, we do a really good job making our customers successful, making it easy to buy, easy to deploy, easy to manage, and we constantly just stay ahead in the roadmap, in what we're doing, and you know, it's-- >> Nice business. >> It's not that complex. >> What's the booking, what's the booking? >> The last year we ended at 827 on our goal of 766, so we blew away our goal last year. This year we put a stretch goal, get to a billion, we're well on our way to do that. I think there's only 34 companies that have got there, got over a billion, but that's our goal. >> And as a Co-CEO, one of your jobs is to sort of identify opportunities for TAM expansion, you've done that. Now, you've up-leveled the messaging big-time. So that's been great, to see that progress. And then, talk about the TAM. People think, okay, back up, tiny little five, six, seven billion dollar market. But your TAM is much larger, talk about your market. >> So we call what we're doing intelligent data management, so data management, managing your data, protecting your data, but doing it in an intelligent way, right? Not, you know, reactive, more proactive, more from policy based to behavior based. So that message is really resonating in the market. And so, I think there's a lot of, when we looked at the space, backup and recovery is really just one piece of it. There's email backup, right? Office 365, SAS applications, more and more eDiscovery, there's endpoint backup. So when we look at that and then back up in the cloud from a cloud infrastructure, when you add up all of that addressable market, it's about a 39, just, the high $30s billion market opportunity growing at almost 10%. So, some of that we'll do organically, we'll build ourselves, some of which we'll buy like N2WS, and some of it we'll just partner where it makes sense to do that, but that's the market we're going after intelligent data management. >> How are you using machine intelligence and leveraging that to go after intelligent data management? >> Well, you think of, we call it five stages of intelligent data management, so there's a journey that people go from backup to aggregation of all the data, to visibility, orchestration, and automation. When you get to orchestration and automation, it's around doing things smarter and getting more insight from what you've been doing in the past, like learning how you've been able to managing your backup to the cloud, from the cloud, between clouds, but now when you start adding things like security, like hey, there's a ransomware that you found, find a clean backup or restore to a better version of your data to the environment. Or a weather pattern, something's happened and back up to a different location versus. So you can start feeding in external, different third party data into our machine that allows us to be able to protect and manage your data far better. So, that's a huge opportunity. >> I mean, this is a very competitive space, you've been as a company, so successful, while others are declining or flattening out. Why, what specifically is the driver? Is it simplicity, was it just the product itself? I mean, it's hard to break into this market and kind of have the numbers you guys have. >> Yeah, I've been amazed early on. I mean, it is, the product is that good. We used to have a tagline that it just works, and that came from our customers. Veeam: it just works, and it does. I mean, I would say first and foremost, the technology is that good. I love to say it was sales, the execution, and everything else, but you know it is the product. >> Easy to sell a product that's just good. >> It makes it so much easier when the product is that good. >> So, that, I think the way we approach the ecosystem, it's a channel model, it's a very leveraged model, we added alliances into the mix, so we have, we just announced our Cisco Hyperflex. So Hyperflex, we're the first and only solution, intelligent data management solution, that is bundled with Cisco Hyperflex, that we announced, today. But, Cisco can now resell as one skew, HP can now sell as one bundled skew, NetApp can sell as one bundled skew, and we've got others that are coming. We've been hardware and software, hardware agnostic, cloud agnostic. And when other companies like Commvault and Veritas and Dell all have an appliance solution, Cohesity, Ruberik, and others, it's really driven the rest of the ecosystem to the company that has been Switzerland of all of it, because a lot of these companies have hardware that they already have. So we leverage, hey, we'll work with what you have, and you know we're going to work with what you're going to have, because we're not locking you into any hardware. >> That's what you always down. And it's been, so good product, easy-- >> Common sense approach. >> Common sense, and then focus. We haven't tried to do more than what we're, I mean, we want to be best in the world, started with virtual, cloud was the next, physical we added physical component that we were missing in. So virtual, physical, and cloud. Single pane of glass, orchestration, automation. It's not that hard. >> On the product side, as you got a couple minutes left. I want to get your thoughts on the growth strategy. Obviously, machine learning, if you're doing intelligent data, you've got to be using ML and AI, it's going to be core to the product. How is that looking, what's the story there? >> You know it's almost vertical dependent, right? Because what we're finding is in certain verticals, the ecosystem is different, and how we learn from, a lot of the channel partners are driving us in this direction, alliance partners are driving us to this direction, and moving from this kind of reactive mode to proactive mode. And so that's kind of opening up a broader ecosystem for us on how do we leverage more of the knowledge that's outside of our world and into making what we do in the managing of data, because, you know, the accumulation of data, as you guys know, it's doubling every two years, right? It's everywhere, data is all at endpoints and edge devices, it's coming from all over the place, and it's far more critical. And so, we're kind of in the middle of all that. And so now, how do we better manage that data for you, and adding more machine learning into that is critical. >> Well, thanks for taking the time to stop by theCUBE, congratulations on your success, just works, your product excellence, it's pretty nice to have that. Lot of companies don't have that luxury. Congratulations and thanks for coming by. >> Thanks, John. >> Peter McKay here on theCUBE, Veeam, very popular product in the VMware ecosystem, of course they run one of the best parties here, some say the best. >> Tonight. >> We'll be checking out, tonight. Peter, thanks for coming on. Stay with us for more coverage after this short break. (digital music)

>> Announcer: Live, fro-- >> Announcer: Live from Vancouver, Canada it's theCUBE! Covering OpenStack Summit North America 2018. Brought to you by Red Hat, the OpenStack Foundation, and it's ecosystem partners. >> Hi and welcome to SiliconANGLE Media's production of theCUBE here at OpenStack Summit 2018 in Vancouver. I'm Stu Miniman with my cohost, John Troyer. We're here for three days of live wall-to-wall coverage at the OpenStack Foundation's show they have it twice a year John, pleasure to be with you again, you and I were together at the OpenStack show in Boston, a year ago, little bit further trip for me. But views like this, I'm not complaining. >> It's a great time to be in Vancouver, little bit overcast but the convention center's beautiful and the people seem pretty excited as well. >> Yeah so if you see behind us, the keynote let out. So John, we got to get into the first question of course for some reason the last month people are always Hey Stu where are you, what're you doing and when I walk through the various shows I'm doing when it comes to this one they're like, why are you going to the OpenStack show? You know, what's going on there, hasn't that been replaced by everything else? >> I got the same thing, there seems to be kind of a almost an antireligious thing here in the industry maybe more emotional perhaps at other projects. Although frankly look, we're going to take the temperature of the community, we're going to take the temperature of the projects, the customers, we got a lot of customers here, that's really the key here is that our people actually using this, being productive, functional, and is there enough of a vendor and a community ecosystem to make this go forward. >> Absolutely, so three years ago, when we were actually here in Vancouver, the container sessions were overflowing, people sitting in the aisles. You know containers, containers, containers, docker, docker, docker, you know, we went through a year or two of that. Then Kubernetes, really a wave that has taken over, this piece of the infrastructure stack, the KubeCon and CloudNativeCon shows, in general, I think have surpassed this size, but as we know in IT, nothing ever dies, everything is always additive, and a theme that I heard here that definitely resonated is, we have complexity, we need to deal with interoperability, everybody has a lot of things and that's the, choose your word, hybrid, multi-cloud world that you have, and that's really the state of opensource, it's not a thing, it's there's lots of things you take all the pieces you need and you figure out how to put 'em together, either buy them from a platform, you have some integrator that helps, so somebody that puts it all together, and that's where, you know, we live here, which is, by they way, I thought they might rename the show in the open, and they didn't, but there's a lot of pieces to discuss. >> Definitely an open infrastructure movement, we'll probably talk about that, look I loved the message this morning that the cloud is not consolidating, in fact it's getting more complicated, and so that was a practical message here, it's a little bit of a church of opensource as well, so the open message was very well received and, these are the people that are working on it, of course, but yeah, the fact that, like last year I thought in Boston, there was a lot of, almost confusion around containers, and where containers and Kubernetes fit in the whole ecosystem, I think, now in this year in 2018 it's a lot more clear and OpenStack as a project, or as a set of projects, which traditionally was, the hit on it was very insular and inward facing, has at least, is trying to become outward facing, and again that's something we'll be looking at this week, and how well will they integrate with other opensource projects. >> I mean John, you and I are both big supporters of the opensource movements, love the community at shows like this, but not exclusively, it's, you know, Amazon participating a little bit, using a lot of opensource, they take opensource and make it as a service, you were at Red Hat Summit last week, obviously huge discussion there about everything opensource, everything, so a lot going on there, let me just set for, first of all the foundation itself in this show, the thing that I liked, coming into it, one of the things we're going to poke at is, if I go up to the highest level, OpenStack is not the only thing here, they have a few tracks they have an Edge computer track, they have a container track, and there's a co-resident OpenDev Show happening a couple floors above us and, even from what the OpenStack Foundation manages, yes it OpenStack's the main piece of it, and all those underlying projects but, they had Katacontainers, which is, you know, high level project, and the new one is Zuul, talking about CI/CD, so there are things that, will work with OpenStack but not exclusively for OpenStack, might not even come from OpenStack, so those are things that we're seeing, you know, for example, I was at the Veeam show last week, and there was a software company N2WS that Veeam had bought, and that solution only worked on Amazon to start and, you know, I was at the Nutanix show the week before, and there's lots of things that start in the Amazon environment and then make their way to the on-premises world so, we know it's a complex world, you know, I agree with you, the cloud is not getting simpler, remember when cloud was: Swipe the credit card and it's super easy, the line I've used a lot of times is, it is actually more complicated to buy, quote, a server equivalent, in the public could, than it is if I go to the website and have something that's shipped to my data center. >> It's, yeah, it's kind of ironic that that's where we've ended up. You know, we'll see, with Zuul, it'll be very interesting, one of the hits again on OpenStack has been reinvention of the wheel, like, can you inter-operate with other projects rather than doing it your self, it sounds like there's some actually, some very interesting aspects to it, as a CI/CD system, and certainly it uses stuff like Ansible so it's, it's built using opensource components, but, other opensource components, but you know, what does this give us advantage for infrastructure people, and allowing infrastructure to go live in a CI/CD way, software on hardware, rather than, the ones that've been built from the dev side, the app side. I'm assuming there's good reasons, or they wouldn't've done it, but you know, we'll see, there's still a lot of projects inside the opensource umbrella. >> Yeah, and, you know, last year we talked about it, once again, we'll talk about it here, the ecosystem has shifted. There are some of the big traditional infrastructure companies, but what they're talking about has changed a lot, you know. Remember a few years ago, it was you know, HP, thousand people, billion dollar investment, you know, IBM has been part of OpenStack since the very beginning days, but it changes, even a company like Rackspace, who helped put together this environment, the press release that went was: oh, we took all the learnings that we did from OpenStack, and this is our new Kubernetes service that we have, something that I saw, actually Randy Bias, who I'll have on the show this week, was on, the first time we did this show five years ago, can't believe it's the sixth year we're doing the show, Randy is always an interesting conversation to poke some of the sacred cows, and, I'll use that analogy, of course, because he is the one that Pets vs Cattle analogy, and he said, you know, we're spending a lot of time talking about it's not, as you hear, some game, between OpenStack and Kubernetes, containers are great, isn't that wonderful. If we're talking about that so much, maybe we should just like, go do that stuff, and not worry about this, so it'll be fun to talk to him, the Open Dev Show is being, mainly, sponsored by Mirantis who, last time I was here in Vancouver was the OpenStack company, and now, like, I saw them a year ago, and they were, the Kubernetes company, and making those changes, so we'll have Boris on, and get to find out these companies, there's not a lot of ECs here, the press and analysts that are here, most of us have been here for a lot of time so, this ecosystem has changed a lot, but, while attendance is down a little bit, from what I've heard, from previous years, there's still some good energy, people are learning a lot. >> So Stu, I did want to point out, that something I noticed on the stage, that I didn't see, was a lot of infrastructure, right? OpenStack, clearly an infrastructure stack, I think we've teased that out over the past couple years, but I didn't see a lot of talk about storage subsystems, networking, management, like all the kind of, hard, infrastructure plumbing, that actually, everybody here does, as well as a few names, so that was interesting, but at the end of the day, I mean, you got to appeal to the whole crowd here. >> Yeah, well one of the things, we spent a number of years making that stuff work, back when it was, you know, we're talkin' about gettin' Cinder, and then all the storage companies lined up with their various, do we support it, is it fully integrated, and then even further, does it actually work really well? So, same stuff that went through, for about a decade, in virtualization, we went through this in OpenStack, we actually said a couple years ago, some of the basic infrastructure stuff has gotten boring, so we don't need to talk about it anymore. Ironic, it's actually the non-virtualized environments, that's the project that they have here, we have a lot of people who are talking bare metal, who are talking containers, so that has shifted, an interesting one in the keynote is that you had the top level sponsors getting up there, Intel bringing around a lot of their ecosystem partners, talking about Edge, talking about the telecommunications, Red Hat, giving a recap of what they did last week at their summit, they've got a nice cadence, the last couple of years, they've done Red Hat Summit, and OpenStack Summit, back-to-back so that they can get that flow of information through, and then Mark Shuttleworth, who we'll have on a little bit later today, he came out puchin', you know, he started with some motherhood in Apple Pi about how Ubuntu is everywhere but then it was like, and we're going to be so much cheaper, and we're so much easier than the VMwares and Red Hats of the world, and there was a little push back from the community, that maybe that wasn't the right platform to do it. >> Yeah, I think the room got kind of cold, I mean, that's kind of a church in there, right, and everyone is an opensource believer and, this kind of invisible hand of capitalism (laughs) reached in and wrote on the wall and, you know, having written and left. But at the end of the day, right, somebody's got to pay for babies new shoes. I think that it was also very interesting seeing, at Red Hat Summit, which I covered on theCUBE, Red Hat's argument was fairly philosophical, and from first principles. Containers are Linux, therefore Red Hat, and that was logically laid out. Mark's, actually I loved Mark's, most of his speech, which was very practical, this, you know, Ubuntu's going to make both OpenStack and containers simpler, faster, quicker, and cheaper, so it was clearly benefits, and then, for the folks that don't know, then he put up a couple a crazy Eddy slides like, limited time offer, if you're here at the show, here's a deal that we've put together for ya, so that was a little bit unusual for a keynote. >> Yeah, and there are a lot of users here, and some of them'll hear that and they'll say: yeah, you know, I've used Red Hat there but, you can save me money that's awesome, let me find out some more about it. Alright, so, we've got three days of coverage here John, and we get to cover this really kind of broad ecosystem that we have here. You talked about what we don't discuss anymore, like the major lease was Queens, and it used to be, that was where I would study up and be like oh okay, we've got Hudson, and then we got, it was the letters of the alphabet, what's the next one going to be and what are the major features it's reached a certain maturity level that we're not talking the release anymore, it's more like the discussions we have in cloud, which is sometimes, here's some of the major things, and oh yeah, it just kind of wraps itself in. Deployments still, probably aren't nearly as easy as we'd like, Shuttleworth said two guys in under two weeks, that's awesome, but there's solutions we can put, stand up much faster than that now, two weeks is way better than some of the historical things we've done, but it changes quite a bit. So, telecommunications still a hot topic, Edge is something, you know what I think back, it was like, oh, all those NFE conversations we've had here, it's not just the SDN changes that are happening, but this is the Edge discussion for the Telcos, and something people were getting their arms around, so. >> It's pretty interesting to think of the cloud out on telephone poles, and in branch offices, in data centers, in closets basically or under desks almost. >> No self-driving cars on the keynote stage though? >> No, nothing that flashy this year. >> No, definitely not too flashy so, the foundation itself, it's interesting, we've heard rumors that maybe the show will change name, the foundation will not change names. So I want to give you last things, what're you looking for this week, what were you hearing from the community leading up to the show that you want to validate or poke at? >> Well, I'm going to look at real deployments, I'd like to see how standard we are, if we are, if an OpenStack deployment is standardized enough that the pool of talent is growing, and that if I hire people from outside my company who work with OpenStack, I know that they can work with my OpenStack, I think that's key for the continuation of this ecosystem. I want to look at the general energy and how people are deploying it, whether it does become really invisible and boring, but still important. Or do you end up running OpenShift on bare metal, which I, as an infrastructure person, I just can't see that the app platform should have to worry about all this infrastructure stuff, 'cause it's complicated, and so, I'll just be looking for the healthy productions and production deployments and see how that goes. >> Yeah, and I love, one of the things that they started many years ago was they have a super-user category, where they give an award, and I'm excited, we have actually have the Ontario Institute for Cancer Research is one of our guests on today, they won the 2018 super-user group, it's always awesome when you see, not only it's like, okay, CERN's here, and they're doing some really cool things looking for the Higgs boson, and all those kind of things but, you know, companies that are using technology to help them attack the battle against cancer, so, you know, you can't beat things like that. We've got the person from the keynote, Melvin, who was up on stage talking about the open lab, you know, community, ecosystem, definitely something that resonates, I know, one of the reasons I pulled you into this show in the last year is you're got a strong background there. >> Super impressed by all the community activity, this still feels like a real community, lots of pictures of people, lots of real, exhortations from stage to like, we who have been here for years know each other, please come meet us, so that's a real sign of also, a healthy community dynamic. >> Alright, so John first of all, I want to say, Happy Victoria Day, 'cause we are here in Vancouver, and we've got a lot going on here, it's a beautiful venue, hope you all join us for all of the coverage here, and I have to give a big shout out to the companies that allowed this to happen, we are independent media, but we can't survive without the funding of our sponsors so, first of all the OpenStack Foundation, helps get us here, and gives us this lovely location overlooking outside, but if it wasn't for the likes of our headline sponsor Red Hat as well as Canonical, Kontron, and Nuage Networks, we would not be able to bring you this content so, be sure to checkout thecube.net for all the coverage, for John Troyer, I'm Stu Miniman, thanks so much for watching theCUBE. 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>> Announcer: Live from Chicago, Illinois. It's theCUBE. Covering VeeamON 2018. Brought to you by, Veeam. >> We're back at VeeamON 2018 in Chicago. You're watching theCUBE, the leader in live tech coverage. My name is Dave Vellante with Stu Miniman. Paul Madison is here he's the vice president of global cloud business at Veeam. Cloud, is where all the action is. Paul, thanks for coming back on theCUBE. >> No, Dave good to see you again, Stu good to see you. >> So you guys have made, you know, a major push obviously into the Cloud. We talked about, with Peter, that you know Veeam used to be product company. Now you're a platform company. Platforms beat products as we know and Cloud is a key part of that. It's a distribution channel, it's a technology, it's a disruptive force. What's your take on what's happening in Cloud? >> So, we're loving what's going on in the Cloud market space. I think, and I've talked with you guys about this before, the pace of innovation that's happening is absolutely remarkable. And it's all about delivering value for the customer. I heard Danny talk about business outcomes in the Cloud. We see this again and again, the Cloud is emerging as the platform or series of platforms that customers can drive innovation, can drive business agility. And we're excited about that because as the customers are moving there now we are evolving our platform to allow them to know that no matter what infrastructure, what platform they use they've got an answer in Veeam. Right? From a data protection, intelligent data management perspective... Veeam's got an answer. So, we see incredible market opportunity, we see accelerate in innovation and we see our platform evolving to take advantage of all that. >> So as the head of Cloud at Veeam, how does it work? Do you have product requirements, obviously you've got channel relationships to get building how do you spend your time architecting, I mean, how did you architect sort of the Cloud plan for Veeam? >> Yeah, it's still a work in process obviously. We are constantly evolving it as the market changes, we have to continue to evolve our strategy. But I have a lot of internal partners, you know, I partner really closely with Danny's organization from a product strategy. I partner very closely with Anton Gostev on product management, I partner really closely with Carey Stanton on our alliance partners. Because as you can imagine all of them are moving towards the Cloud or have a Cloud strategy. I work with people on pricing, licensing, sales, and marketing. And it's just this great, wonderful ecosystem that we have internally. Where we assess where we want to be, we assess where the platform has to go and we try to evolve all those things together. It's not trivial, there's a lot of work. Especially as we transition from a product company, to a platform company, to a solution company. But those are the kinds of problems that we like to solve, that's exciting stuff for us. >> Paul, wonder if you could speak a little bit to that partner ecosystem. So, you know, we went through years of public cloud is the enemy or public cloud said everything is going here to, you know, the Cloud service providers. And even the traditional vars and integrators, many of them worked with Microsoft for years. Lots of them now working with Amazon in some way or another. >> Paul: Right. >> Walk through a little bit that dynamic of what you are seeing, of course you play it across all of them so you've got a great vantage point. >> Yeah, sure. It's a great question, and it has, Stu, it's evolved in the last I'd say 18 to 24 months. It used to be, when I first started at Veeam, I went to a partner conference and I was six weeks into my tenure at Veeam and I came from Microsoft Azure And the looks on the peoples faces was, oh my God, you know, Veeam is going 100% asual. As the Azure guy here public cloud was bad, right? And so it lit people up and I tried to, and continue to rapidly assure them, no, that's not the enemy, that's not where we're going. We see an evolution now where we do see some Cloud service providers saying, we have to understand that customers want to go there, so I need to be a part of that market. That's why we're making the choices that we're making in terms of how we engineer the platform is that it's about customers having choice. And so, it's not the easiest dynamic to manage, as you might be aware of. But there is value, you see firms that will, now are starting to say, okay I can differentiate based on maybe a vertical orientation that I have. I'm going to specialize by going after the enterprise or by going after health care, financial services. And they're saying alright, those big players are here to stay. I better, I should figure out how to get along with them and how I can add value on top of them. Because from my perspective, and those big hyper scale or public clouds. Sometimes I call them a canvas, you can paint on them. But cloud and service providers can really help bring another level of intimacy to those platforms for their customer and drive value for their customer. So co-opting those large platforms is a good strategy. >> Yeah, alright, so Microsoft background. One of the things that caught our eye is, I believe, it was 2500 downloads already of the Veeam solution. >> Yes. >> For Azure. >> Yes. >> Broad reduction and betaWS, give some color on what's happening with public now. >> Yeah, sure, so we are super excited about what's happening with our Cloud partners. We've had tremendous growth in our VCSP business. We have over 19,000 of them now, globally, which is a huge ecosystem of partners. We've seen 58% year over year growth there. Fantastic growth in the number of machines that are protected by Veeam and Veeam powered services. The AWS marketplace has been, the AWS market is one that we've now, you know, jumped into with our acquisition of N2WS. We've seen terrific, I don't know if you're talking with Ezra or anybody from the N2W side. But they've seen 153% year over year growth since coming on board with Veeam. We have Office365 now, Danny talked a little bit about the new version of that, that we're in private beta of right now. That market is taking off tremendously. We've seen 29,000 downloads of that, 29,000 different customers that have downloaded that. We're currently protecting around three million mailboxes of Office365, so there's just a lot that's, our work with the IBM Cloud, is terrific. They are here, they're our sponsor. Great things going on there, 1,000% growth in the VM's that are deployed using it, on the IBM Cloud. Now their resiliency services practice is building up around Veeam. So there's just this tremendous momentum across all the dynamics of our Cloud business right now. >> Well, customers have to place bets. We love sports analogies in theCUBE. Kentucky Derby just went down, we have the Preakness coming up. And customers I feel like they're placing bets on what's called the under card, right. You've got the big race is the Kentucky Derby, well there's a bunch of races leading up to that, they call that the under card. People warm up, they make little bets here, little bets there. But then when it comes to the big race that's when they put down their big money. And I feel like the Cloud bets have largely been on the under card to date. When you talk to customers, well first of all do you agree with that, and are they asking you, okay, you know, which Cloud should I use where? What bets should I place? Having, you know, run the Azure group, you've got a perspective on this. What do you see customers doing and how do you advise them? >> Yeah, so, that's a great question, what we... So let me take you back a little bit. We did see early on customers that sort of nibbled around the edges, around the under card, and made small bets on it and then for whatever reason made the decision to dive in big. And I think a number of them that didn't work out quite well because as they were going through the under card and managing through that they didn't learn as much as they needed to or the platforms evolved so that they ended up saying, wait a minute, hold on, we maybe shouldn't have made that bet. Alright? So, customers now are, I think they're taking a little more of a smart approach towards it because they realize that, hey, going 100% in with one provider is going to be a challenge, right? They are worried about the old vendor lock in and portability across clouds. We obviously will talk to customers about multi-cloud world, 81% that we surveyed said, I'm not going to have a single Cloud provider. I'm going to try to figure out which work loads to put where. And we're going to continue to help advise them and help figure out how they do that. How those different cloud infrastructures factor into their data protection and availability strategies. >> Yeah, so when you get to the database, the middleware on up and you take that approach. Then, obviously there's substantial skillsets that you're going to need whether you're using, you know, Amazon's databases or Oracle's or IBM's, et cetera. At the infrastructure level, however, and I think this is part of your strategy, you can potentially standardize, you know, you guys want to be the standard for the data protection platform. But you've got to earn their trust and the right to do that. >> Paul: Absolutely. >> But if we're understanding that right, that is the strategy, right? To sort of take that stress away from them, let them worry about which database, which SaaS application. But from an infrastructure stand point, you can rely on Veeam to be that data protection platform. >> That's exactly right. And I think when you were talking with Danny earlier is any app, any data, any cloud. Regardless of where you want to go, bet on us, we've got the answer for you. >> Okay so then follow-up question. Why you guys? You've got system vendors, you've got storage vendors, you know, to a certain extent you got quasi security players. Big established companies, start-ups. Why Veeam? >> Well, I think because of a couple of reasons. First of all the platform is extensive and continuing to grow. And we, I'm thrilled that we are, you know, we've got the platform elements of it. I think you said earlier, platforms always trump products. I'm a firm believer in that. I love platforms. I think the second reason is we're a partner driven and customer driven organization. I know that sort of, that can sound like sort of mom and apple pie but the reality is we are 100% channel focused. We don't compete with those channel partners, we don't compete with cloud service providers. We can enable all of them. And so you've got a great platform, with a great organization that knows how to partner and wants to partner. Those two things come together and make us a great choice. >> How do you, I haven't asked anybody this, I wonder if you'll give us your perspective. Because you're pure channel, how do you, and at the same time customer driven, how do you get that feedback? Obviously you go in with channel partners but how do you ensure that you're getting the high fidelity feedback from the customers? >> So, get with the customer. (laughing) You know, we're 100% channel driven but we are arm in arm with our channel partners. It's not, you know, in some areas of the business, yes there's a lot that goes on that Veeam folks don't get involved with. But when it matters, when it counts, we're arm in arm with our channel partners. We go and visit together, we spend that time, we invest that time. We do partner advisory councils, we do customer advisory boards. You know, we're not... It's not diffused through the channels, I guess is what I want to say. It's very much a true partnership where we are engaged fully. >> Okay, let's get into it. You're a Philly fan, your boss is a Patriots fan. >> Paul: I've heard that, yes. >> You got, I mean. Listen, as a long time Philly fan it's like one of the best feelings in the world when your team wins the Super Bowl. First of all, having your team in the Super Bowl for two weeks having that hype lead up is just the greatest thing in the world, even though you just can't wait for kick-off. But I got to say congratulations. >> Thank you. >> I know you've got to feel good about that. >> Thank you, we feel great about it. It took us a couple of days to catch our breath after the game and quite frankly even during the game. Hey, listen, Tom Brady, two minutes ago has the ball, we were all getting ready to leave the party because we said, hey, we've seen this movie before, we know what's going to happen. Go down the field, touchdown. We're out. >> You can't watch. >> Can't watch it, can't watch it. I really didn't watch the last 30 seconds of the game 'cause I just had my (laughs). No we were super happy about it, I will be honest and say it's been a source of on-going rivalry inside of Veeam. Because we have quite the Boston contingent. But, we've got the trophy. >> Well, pretty amazing that, well 'cause Philly had the really outstanding defense >> Yeah. >> Which everybody tries to predict before the game, right, and then Brady shreds the Philly defense. Who would have known that Nick Fowles is going to score every single time he had the ball except the one fluke interception. >> Paul: Yeah. >> It was really an unbelievable game. I mean, as a Pats fan, we were heartbroken, but wow what a game. >> We loved it and, honestly, the guys have been great about it and almost, I don't know if Peter falls in this category, but almost everyone has said, yeah well Philly was the better team. We lost a great game to a better team, there's been no, oh well, one of our guys tried to say, hey, that whole Philly special play should have been called an illegal formation. But then I gave him a list of all the violations that the Patriots have had in the past five years and he's like, okay. >> Yeah you don't want to sound like the raving fan, right? You know, calling the ineligible, eligible. >> Paul: Right. >> Look, Brady, they made that great call. Brady couldn't make the catch, he couldn't make the catch. Nick Fowles made the catch. Okay then when it came down to execution they stared, you know, into the abyss and they didn't blink. I mean, ya got to give em' credit. And Villanova, I mean, that was awesome. >> They were just a machine. >> Sixers, what happened? Big favorite. I think young team. >> Young team, look, they're going to be good for a while. >> Dave: Should be a good rivalry. >> I think Ben Simmons, you know, he's going to come up. Joel Embiid is an absolute beast but I got to hand it to your team and your coach, I mean, I think in some ways we got out-coached a little bit. >> Dave: When Larry Bird came up and Dr. J was, you know, didn't want to relinquish that mantle. That was some of the best rivalries in the early 80's. With the Sixers and the Celtics so hopefully that will get better. >> Paul: Hopefully we'll get that going again. That'll be awesome. >> We love talking sports and we love talking sports with guys in tech that love sports. Paul, thanks very much for coming back. >> Hey, my pleasure man, thanks for having me, really appreciate it, thanks, guys. >> Alright, keep it right there, everybody, we'll be right back with our next guest right after this short break.

(techno music) >> Narrator: Live from Chicago, Illinois, its theCUBE. Covering LeMon 2018. Brought to you by VeeAM. >> Welcome back to the windy city everybody. You're watching theCUBE, the leader in live tech coverage. We go out to the events. We track the signal, extract the signal from the noise. My name is Dave Vellante and I'm here with co-host Stu Miniman. This is our second year here at VeeAMON. Hashtag Veeamon, simple enough. Kate Hutchison is here, she's the CMO of VeeAm. >> Yes, thank you very much for having me. Its a pleasure to be here. >> You're very welcome, thanks so much for taking time out of your busy schedule, great show. You've painted the town in green. >> We certainly have. (laughs) >> So VeeAM obviously didn't need your expert help in creating awareness in places like this. >> Kate: Yes. >> And having a persona around around the green team. Awesome. Your background, Riverbed, Polycom, VMware, Citrix, BEA, some rockstar companies. You've got a lot of experience there. Why did you come to Veeam, and why now? >> Yes, so I was attracted to VeeAM for many reasons. We have some, as you know, some stellar attributes as a company. We've been talking about our net promoter score of 73, which is three and half times the industry average. And of course the executive team themselves, and meeting them and really wanting to be a part of that team. So that was a huge reason for me joining, but as it relates to my career and my background and what I thought I could bring to VeeAM. Very much about enterprise marketing. So I've spent about the last 20 years in the industry, as you mentioned the company names. Really helping those companies build the powerhouse brand, and so I just love being a company who is known for one thing, but is very successful that being known for something that's even broader and more strategic. And that's why I wanted to join the company. >> You mentioned the phrase powerhouse brand. What is a powerhouse brand, and how do you go about building it? >> Well everybody probably has a different definition of a powerhouse brand, but having spent a good 15 years in the Bay area, Silicon Valley, when you're walking around Silicon Valley and you say who you work for and everyone recognizes it, you're working for a powerhouse brand. That hasn't been the case with VeeAM. Now we're very strong, we do our research. We come out pretty strong it Europe, but in terms of our brand awareness in North America we have a ways to go there. Again, and I think because when it comes to building a brand and a powerhouse brand, enterprises really rely on customers to do that. To really leverage the voice of customers, to get the word out and to get the customers to go on record to talk about the power and value of VeeAM. Because when customers go on to talk about it, there really is no better marketing that you can do. >> Ya Kate, one of the things I saw. VeeAM started out with the geeks, and I say that in the most loving terms. People that did virtualization. >> Kate: Yes. >> VeeAM solved a problem, simple, huge adoption in that market, but as we've been talking about all day here, data protection is going up the stack. >> Kate: It is. >> It's hitting the seed sweep more, so. >> Kate: Yes. >> Maybe you could explain to a lot of our audience are the techies and they're like I don't understand this brand in marketing things. >> Kate: Sure. >> We just want the next little containers and things there. >> Kate: Absolutely. >> So why the brand elevation? >> So, first and foremost, we're known for one thing in the industry, as it relates to our product. It just works, and we're not leaving that behind, and certainly the enterprise cares a lot about the product, but as we go into the enterprise space, there's some things that an enterprise customer is going to look for, that an SMB may not. Enterprise is one of the assured company that they're doing business with, has long term viability. They want to make sure that there's plenty of addressable market and headroom for them to go far and above, beyond their sights of, a billion in our case. The other thing is, enterprise customers have a different way of engaging with that company, as it relates to the selling motion. So whether it's our partners, our alliance partners, our resellers, our sales teams directly, they want to be able to work with them as trusted advisors, and they want our folks to be able to anticipate their needs, well ahead of when they actually encounter them. So, we're talking a lot about a journey for our customers. We've been talking about intelligent data management, and the five stages of getting to that. So its really, its building on our core. Which has been SMB and commercial, but also now, up leveling the story, and by the way, the technologists at all companies of all sizes, want to be doing more to influence the outcomes, the business outcomes. So we're telling a story that we think will resonate with them and there's always plenty of click downs into the technology if you want it. (laughs) >> So you guys are putting a lot of emphasis on the up leveling. As Stu mentioned, CXO is becoming more aware of the data protection problem. >> Kate: Yes. >> Its becoming a board level topic. >> Kate: Yes. >> So I think I get the why now. >> Kate: Yes. >> My question is, why VeeAM? And what is the brand promise that you're going to bring to that enterprise? >> So I think, traditionally, VeeAM has been thought of as more of an S&B and commercial play. So the why now is that we have a much broader portfolio then we had a few years ago, and yet we're thought of as just back up and replication. Now, we're building on what our reputation is and back up and replication, but we want to take customers to where we know the puck is going. So for example, as enterprise customers want to take advantage of public clouds, of manage clouds, of SAS applications, they need to be able to get control of all their data. That's the one thing we hear over and over. I don't know where all my data is. Right? So they need to have a platform that can give them that visibility and that aggregated view, that single paint of glass. Then they're going to eventually want to take advantage of being able to move workloads into places where it makes more sense to have them. In cases where there needs to be tighter protection, or in the case of archive data, that they don't need to spend a lot of money on primary storage. It just depends on what our customers want to do. And, ultimately, to be able to move to more of a behavior based way of managing that data. For example, if we see malware crossing that network we can immediately respond and make sure that those workloads are secure. It could also happen as it relates to weather systems and being able to have the data be smart enough to sense and respond where it needs to move to. >> We saw some slides this morning that Peter McKay was showing, like off the platform slide, and I tweeted out that we learned years ago, working with Eric Brinyawlson and Andy McAfee that platforms beat products. >> Kate: Yes. >> So, talk about the importance of platforms through the enterprise. >> Yes, so first of all you cannot be a platform provider without an ecosystem that's embracing and extending the value, and we're working with our ecosystem through the API's, the application programming interfaces, that we make available to them so that they can integrate with our products, and actually allow our platform to be able to be the most complete platform for intelligent data management. That is not all coming from VeeAm, we are very heavily dependent on our ecosystem. >> Dave: Right. >> So that's really the crux of how important a platform is because customers have a lot of technology already in their environments. They want to make sure that if I'm buying something from you, that it'll integrate into my existing environment so I don't have to do a complete rip and replace. That's a very expensive proposition. So, we have been investing and we have thousands of technology partners that are embracing our API's and again, extending the value of our platform. >> I don't want to jump in but, I was going to ask you how you add value to those partners, and it's not just the product and the features, and doing what you say you're going to do from a product standpoint, it's having that platform that makes it easy to integrate, >> Kate: That's right. >> And creating that scale effect, that flyaway effect. >> Absolutely, and a solution that is better together. So, customers really like buying solutions that are already packaged and integrated as it might relate to Cysco and VeeAM or HPE and VeeAM or NetApp and VeeAM. That's what we've been doing with those partners in particular and really going to market together, and that is a preferred way for many customers to buy. >> Or IBM and VeeAM, or Microsoft and VeeAM, >> Yes >> Botanics and VeeAM. VMware and Veeam, we don't want to leave anybody out. >> Kate: We don't want to leave anyone out. Those three that I mentioned, we're on their price list and we are reselling. >> So that's the difference. >> Yes. That's the difference >> Okay, that's really the point. >> Yes. >> Okay. >> So my question is, as you go up the stack a bit, talk about platforms and things like orchestration, >> Kate: yes >> the swim lanes get a little bit muddy, because if you talk about those same partners, the VMware, Microsoft, the Newtanics of the world. >> Kate: Yes. >> They want to own a lot of those pieces in the multi cloud world. >> Kate: Yes. >> Maybe you can help explain that. >> I think we're all probably saying some of the same words, but defining them a little differently. So when we talk about orchestration, it's very much about allowing workloads to move seamlessly across multi-clouds. To do that while the data is secure and protected, and eventually introduce, we have partnerships today that allow us to leverage artificial intelligence. So that those workloads can move seamlessly without any disruption to the business as they're moving to the right location. So yes, I think you hear a lot of the terms, but as you drill down into it and you double click on what does that mean for, in your environment, it's a little different. >> So when VeeAM decided to expand deeper into the enterprise, it's putting its money where its mouth is. I mean Robby brought in Peter McKay, he brought in a number of folks on the sale side with enterprise, now yourself. >> Kate: Yes. >> We saw Dave Russel up on stage today. >> Kate: Yes. >> He's got some enterprise jobs. >> I'm looking forward to working with him. >> You're not just talking to talk, you're walking to walk. Which is great to see, and thinking about the total available market, its a TAM expansion move, can you address that at all? >> Kate: Yes. >> I know you guys are very research oriented, as a company. >> Kate: Yes. >> You have relationships with all the big research houses. What do you see from a taman standpoint. >> Yes, so, remember that our proposition is to have the most complete platform for intelligent data management. By virtue of saying that, it really means we have to look at adjacent markets for additional capabilities to put into our platform, to ensure that we remain ahead of the competition as it relates to intelligent data management. We're looking at various adjacent markets. Whether that be through a build buyer partner strategy. So one of the largest market opportunities in an adjacency is the cloud infrastructure as a service market. It's huge. Its about 90 billion. It's got a very fast clip in terms of its compounded annual growth rate, and we've already made some pretty great progress there, both organically, as well as through the acquisition of N2WS. When we move into fast growing market segments like that, and we have many others that are adjacent as well, it's creating an addressable market of about 30 billion for us as we look out into 2022. So we're pretty excited about that, and again, that gets back to making those investments so that an enterprise customer feels confident betting their business on us. We have that scale ability. We have that addressable market, and we are increasingly helping our folks on the front lines become trusted advisors to our customers. >> In your estimation, I know some of this is hard when you're doing the analysis >> Kate: Yes. >> I used to do that for a living so I know. In your estimation is that sort of an approximation of spend, or does it include what we look at, as the money that's left on the table by the global 2000 because they have inadequate data protection. Presume it does not include that. >> Kate: Yeah. >> Because if it did, it would probably be a trillion. >> Kate: Right >> But I wonder if you can add some color to it. >> Well I think as we get into an era of compliance, we have GDPR coming down this month, I think companies are taking a new look at what does it really mean to ensure that I know where all my data is, that I ensure it's protected, that I'm sure that it's secure, and that it's in compliance. I think you're seeing more attention, more money. You mentioned earlier that this is becoming more of a sea level issue, and I think in an era of compliance and regulations that are coming down, you're going to see that only increase. >> One of the interesting things that we saw about VeeAM when we were looking at the show here, you're almost, how do I say it, a tweener. You're still kind of a startup, but you're one of the bigger companies in the space. There's a lot of buzz and energy, and customer interest >> Yes. >> In this all market thing. How do you look at yourself compared to some of the legacy giants, >> Yeah. >> And some of the new startups? >> So we are a very fast growing company. We posted 40 percent growth in Q4. We were at 36% year over year. I mean off the very big numbers. I haven't seen these numbers since I was at VMware. So that is a rapid growth company that grows up quickly when it's growing at that clip, so I think there's a part of us that's extremely paranoid about the competition and looking at some of the new entrance to make sure that we are really staying ahead and innovating, continuing to innovate. Then we look at some being legacy companies that have been in this space, and we see in some cases, a downward trend in their revenue and in their investments in this era, in this area. Again, I think it's a healthy balance of innovative and paranoid, and recognizing that customers want the solution that VeeAM offers, and they do want to be able to migrate off of the legacy systems that are out there. We are seeing that time and again. We just showed, this morning in the general session, we showed a Royal Caribbean video and that was a case where they abandoned their legacy system to go with VeeAM. >> Well that's quite a story. Nearly a billion dollars, growing at 35 plus percent a year. You got to look to companies like Service Now, Work Day. >> Kate: Yes. >> You're in that rare-ified air. Well Kate thanks so much for coming. >> Absolutely. >> Congratulations on the new role. >> Thank you. >> Really excited to see you sort of take VeeAM up into that new stratosphere. >> I'm very excited to be here. >> It's great to be part of VeeAMON 2018. Thanks for watching everybody. We'll be right back with our next guess, right after this short break. (techno music)

>> Narrator: Live from Chicago, Illinois, it's the CUBE, covering Veeamon 2018. Brought to you by Veeam. >> Welcome to the Windy City, everybody, you're watching the CUBE, the leader in live tech coverage. My name is Dave Vellante. I'm here with my co-host, Stuart Miniman. Stu, this is our second year of covering Veeamon. Although we have covered Veeam as a company since the early days of its ascendancy into the virtualization space, really focused on as a VMware specialist, virtualization only, now expanding dramatically into the enterprise. This is a company that has grown from very small to quite large, it's going to be probably close to a billion dollars in bookings this year, growing at 30 plus percent each year. A company that is moving beyond just the small business into the core of the enterprise with new executives, new messaging, renewed partnerships that seems to be really gaining traction. Veeam is a backup and data protection specialist that's now trying to rebrand itself as an always on, for the digital world, hyperavailability, intelligent data management, multi-cloud environment, throw in a few more buzzwords, Stu. And they're punching above their weight, as they always have, and it's a playbook that Veeam has used very, very successfully. Combine that with the branding, green everywhere. They've taken over Chicago. Veeam is famous for its parties, parties at VMworld, and other big events, like HPE Discover. And this is, I don't know, the fifth, sixth Veeamon that they've had, and we've got how many people here, Stu? >> 2,200. >> 2,200. So, what's your take? You saw the keynotes this morning, you were in the private analyst sessions today. Give us your analysis of Veeam. >> Yeah, Dave, you know, first of all, they did what most of the big companies do. They started off with a partner day. Veeam's all about their partners. Last year, you and I documented what they talked about is they were transitioning from the 10 years of virtualization to the next big wave, which is cloud. Doesn't mean that virtualization goes away, there's lots that they're doing in the multi-hypervisor world, but multi-hypervisor, multi-cloud, it's any data, any app, any cloud is the message. And Peter McKay started out, Dave, you know, big hero numbers for the company. As you said, they've had over double-digit growth, for now, it's 39 quarters, hugely impressive. 827 million in 2017 booking. The goal absolutely is to be over one billion dollars this year. For me, the number that jumped out, really, is they have 300,000 customers. You and I were talking to Ratmir a little bit and said, okay, you know, VMware has 500 thousand, he's like, well, 550 thousand customers and Veeam's in about 270 thousand of those, so about half of all VMware customers are in there, that Veeam is in there, but they have lots of headroom for growth in those VMware environments. As you've heard Veeam today over and over, the growth opportunity for them is the enterprise. So while they're in a lot of the Fortune 100 and Fortune 1000 accounts, they haven't penetrated them nearly as deeply as, say, a VMware has. But when you look at 300,000 customers, Dave, they're adding 133 customers a day. That's about 10,000 a quarter. 133 a day, 10,000 a quarter. Say, compare and contrast against another Veeam partner, Nutanix. Nutanix is adding about 1,000 customers a quarter, which is great for Nutanix, for their market, but as a software company in the cloud world, Veeam can stack themselves up against, again, some of the largest software companies in the world. And they put out the plan in place, is how they're going to get not only over a billion, but get to, like, that five billion dollar mark, which is some really rarefied air. >> So, let's stay on that for a second. Two themes I want to cover. First, the customers. 300,000 customers, 90% are in a virtualized and using VMware, that was the roots of this company. But there's 500,000, 550,000, I think now, VMware customers, so there's some opportunity there. We're going to talk to Ratmir Timashev, the founder. He was sharing with us before that their mantra earlier on was no physical, just virtual, just virtual. Well, last year, they announced physical. They're expanding, that's a TAM expansion move. Their TAM is much, much bigger than just a couple of billion dollars in pure backup. It's in the 20, 30 billion dollar range now. So that leads me to the second point, which is Veeam is an enterprise software, Veeam's a pure software company, first of all. So they are beginning to reach that rarefied air of a billion dollar plus companies. Obviously, Oracle, SAP, Salesforce, you know, are there. But others have recently cracked the billion: ServiceNow, Workday, companies like that. RedHat, obviously, is another one that's blown through that billion dollar figure, doing very, very well. Some would argue that Nutanix is a software company, could even argue, sort of stretching it now, Pure is a software company, a lot of software innovation. But Veeam, there's no argument, they are a pure software company. The number of billion-dollar software companies is few and far between, Veeam is about to crack that magic number, which is not trivial. >> Yeah, and Dave, we've talked about going beyond virtualization and cloud. Last year, one of the big discussion points was they bought N2WS, which is really how they get backup into AWS. And they've got large growth, 153 growth year over year. Other one, Microsoft, big partner of theirs, both for virtualization, something that kind of sent a ripple through the whole virtualization industry, when Veeam got off of only VMware and added hyper-v support. Well, Azure, they've got over 2,500 downloads of their Azure solution, so showing growth there. Also, supporting IBM Cloud, working with a lot of service providers. The breadth of what they're offering, in expanding beyond just the virtualization, admin, and some simple tools, where Veeam had really cut their teeth. Because, Dave, that core business, there's a lot of competitors there now, and Veeam's trying to make sure that they fight off the competition and stay ahead in this multi-cloud world. >> So much to talk about, I want to talk about the competition, but before we get there, one of the critical factors for a company like Veeam, trying to attract enterprise customers, Veeam's a company who's known for their SMB heritage. And so, partnerships, crucial. Just some of the partnerships that they've signed and emphasized over the last year and a half, two years: HPE, my sources tell me, we heard Bill Philbin up on stage this morning, he had a keynote, my sources tell me that it's many, many tens of millions of dollars, so this is on its way to 100 million dollar partnership. IBM, you mentioned IBM Cloud, Microsoft, the Azure stuff, Pure Storage, Nutanix, VMware, obviously, has always been a partner. NetApp, Cisco, we heard up on stage today. So expanding the partner ecosystem. Stu, explain why that's so important. >> Yeah, so first of all, Dave, so many places, how does Veeam go to market? One of the more interesting things, if you talk about the sales motion, is HP and Cisco now have Veeam in their price book. So Veeam, great channel, customers that love them, over 300,000, but when you take the Cisco sales force and the HPE sales force, and say you guys can make money on this, that really hypercharges what they're doing. It was always nice that they partnered with VMware, but how do you get deeper into those environments? I know you want to touch on the competition, we'll make sure we cover, there's some critical hires that they've also had in recent times, but what's your take on the competition? >> Yeah, that's just what I'm talking about. Before we get to competition, I do want to talk about, >> Oh, partners. >> Talent, but I just want to mention HPE, the reason why HPE, to me, is so interesting is because when they sold their software business to Micro Focus, they jettisoned the old HP Data Protect, or HP Protect software business. That opened up a huge opportunity and vacuum for Veeam to slide in. They were very aggressive with regard to partnering with HPE, smart move by Veeam, and I think, smart move by HPE, even though it's more of a reseller slash partnership agreement. Talent. This company's been able to attract talent. It started with Peter McKay, who was brought in to top-level the messaging and the executive team. He's brought in a number of folks, in sales and marketing, the new CMO is on as well. They've attracted a few, one in particular, analysts. So one of the kerfuffles before this show was Gartner announced that two of its analysts were leaving to go to Rubrik. Well, over the weekend, when this announcement came out, Veeam executives saw that. One of them was Dave Russell, who we've had in the CUBE before, very sharp guy, very well known, respected. Veeam jumped on him on that weekend and said, no, you know us better than you know Rubrik, you got to come work for us, and so they stole Dave Russell away. We saw Dave Russell on stage today. He left Rubrik at the altar, which, you know, I'd rather see that than him going to work for Rubrik, for four or five months. But what do you make of that? >> Yeah, so Dave, we've seen a lot of jumps recently, from the analyst side. It's interesting, Jason Buffington, who we'd have on the CUBE many times, is also here at Veeam, so hot space. I know last year at VMworld, we said this whole backup, secondary storage market is one of the hottest areas. There's a lot of money, there's a lot of growth. And what's the analyst's job? It's to really understand some of these trends here. So, some of 'em, it's something that they're passion on, they called Dave Russell the Godfather of backups. So, he said he wanted to be a builder, he wanted to get in, heck, even a good friend of mine just announced he's joining Veeam, Mark Toomey, who was from the EMC side, worked on the backup stuff, real strong technologist, was one of the early bloggers, really knows his stuff, and based in Ireland. Veeam's doing a real good job of attracting talent. Peter McKay's learning from his patriots, as to how to bring in good talent. >> And we'll have him on to talk to you about that. As a lead-in to the competitive discussion, I want to give some analysis that we got from Peter Burris and David Floyer from the Wikibon team. They gave me a few points leading up to this conference that I want to share with our audience. Number one is data protection and orchestration are moving up the list on the level of CXO concerns. So we're seeing that very clearly in our research. The second point, this company talks a lot about the future, and automation as being part of that. There's a dichotomy between the business and IT, in terms of the expectations to the degrees of automation that exist. The business assumes there's a lot more automation than there actually is, so when you see executives up on stage, talking about this automated world, the expectations in the business are everything's going to be automated. It's not that simple yet today. That causes some friction, potentially, in the customer base. Means there's lots of room for churn, that's good news for a company like Veeam, who's both an incumbent but a disruptor moving upmarket. The global 2000, according to David Floyer, is leaving billions of dollars on the table, in terms of lost revenue, because they have inadequate data protection. If you look over a three or four year period, companies are losing money because of inadequate, bolted-on data protection strategies. The last point is all these vendors are vying for position. It's unclear who's going to win this game. You've got no dominant player. You've got the backup and recovery vendors, the storage companies like Dell and EMC, you got security companies that are in there, you got startups, like Rubrik and Cohesity, you got Veeam, who's an established, they're like a hybrid, both established and startup. So you've got this competitive dynamic, which is really, really interesting. I want to flip it over to you. Last year at VMworld, backup and recovery, data protection was one of the hottest areas of topics of conversation, and on the floor, one of the most trafficked by customers. What's your take on that? >> Well, Dave, you know, core to our research, we've been talking about for, I can't even tell you now how long, data is at the center of it all. How do I not, it's not storing data, it's getting value from my data, it's unlocking data. It's not about big data, it's not about some cool new tooling that we have there, and what we've really found is if I've got good replicas, if I've got strong backup, I can actually leverage my data more, get more value out of it, that's critical to what we're talking about here, Dave. Which is why Veeam and others like them can get this, is simplicity, is something we hear over and over, the early days of VMware, that was why customer loved VMware. And Veeam followed that trend a lot. It's really tough to be simple. That was that whole hyperconverge wave, was supposed to be simple. Cloud is not simple today. It's multi-cloud, there's a lot of challenges there. So Veeam, their customers love 'em, the proof is in the numbers that they're putting in. >> I think that's great analysis. Let's close on that. The challenge, I think, for Veeam, like some of the incumbents that you saw, Veritas, IBM, when VMware's ascendancy occurred, Veeam stepped in and really disrupted and won that battle. Now, the others hung on. They hung on to their install base, but they're hanging on for dear life. You've seeing IBM now retooling its portfolio, Dell EMC retooling its backup portfolio, Veritas retooling its backup portfolio, so it's jump ball in that respect. Veeam's got to demonstrate that it can move from that virtualization specialist, small business specialist, up into the enterprise, resonate with the CXOs, and compete for its fair share. So we'll be watching that, we'll be covering that all week. This is Dave Vellante with Stu Miniman. You're watching the CUBE, live from Chicago, Veeamon 2018.