Peter McKay, Veeam - HPE Discover 2017
(upbeat electronic music) >> Announcer: Live from Las Vegas, it's theCUBE covering HPE Discover 2017, brought to you by Hewlett Packard Enterprise. >> Okay, welcome back, everyone. We are live here in Las Vegas for theCUBE. (mumbles) check the signal for the noise. I'm John Furrier with David Vellante. We just had Meg Whitman up here, Dave. Our next guest, another CEO, Peter McKay, CEO of Veeam. Welcome to theCUBE. Congratulations on your success, and great party last night. >> Thank you. It's a good party. Veeam always has a good party. So it's been a great event. This has been really action packed from the time we got here yesterday. >> It really speaks to the change of HPE. You guys are a big time sponsor, great booth space here. You presence is here, and you're in that ecosystem and doing very well. Explain for a minute why that's happening, why is Veeam such a prominent role at HPE this year. >> First, I think culturally, the companies really work well together. A lot of our customers, whether it's enterprise or commercial, kind of that mid-tier market, have been asking for more solutions. And we're a part of it. We're the software. HP is the hardware component, and we bring together. And it's really made it easier for our customers to buy a solution versus trying to buy all the pieces and having to pull that together. So it's really worked out well for both organizations as we expand. >> Well, Peter, a couple more zeros to your revenue number and you'll be running a company the size of Meg's soon. Now of course, Veeam brought you in really to the next level. New management, new messaging, we heard a lot of that at VeeamON, one of the things you talked about. What I liked about your messaging at VeeamON is everybody talks about digital transformation. What you did is you pinpointed it around always on availability. I wonder if you could share with our audience and sort of summarize what you were talking about there. >> Yeah, in the software world, we've lived through a lot of transitions, from mainframe, to client-server, to cloud, all the way through. Everybody's going through, as you said, this transformation and the ability for applications or data to be accessible at anytime anyplace. It used to be that everybody backs up. Now it's about recovery. It's about all your apps, and all your data, all your services to be available seven by 24, 365. And so it's no become just like security was earlier when it was kind of an afterthought. Now it's a forethought. Look it, we're pushing more applications. They're more agile. It's going to go down. British Airways, it's been a huge issue. One guy pulls a plug, next thing you know, it's $100 million. So for us, it's now become mission critical, what we do. And that's where this digital transformation, as kids getting older and they're entering this workforce that only know the digital life, want an always on environment. They're not going to be satisfied with a world that is a bad service, where it's down and I have to go to some other spot. So it's this convergence of companies making this transformation and this new group of users that are coming online that only know a digital life. And that's kind of where we see it all coming together for Veeam. >> So that's a great vision. And we've talked in the past about the ascendancy of Veeam is around VMware backup. You're transitioning that messaging into, as you say, recovery and always on availability. It seems like there's a huge market for this intercloud, multicloud management. Your vision there is any combination of use cases, on prem, off prem, bringing it down from SaaS. So I wonder if you could talk about that strategy, that white space, which is really jump ball in the industry right now. >> It is. So for companies today, they have options. They want to have options, right? They want to have the ability. I want to be able to backup and recover from our on premise data, from my internal data center, manage cloud, manage service, or in a public cloud. So I want to be able to back up but also recover from any of those environments and move it. There may be some applications, Office 365, that's in the cloud, but I want to be able to back up and recover on premise. And so it's opened up a lot of flexibility for customers that don't want to have it all on prem that for some of their data, they can put it in the cloud. For some of it, they want to have a very specific service provider that has a security or a vertical expertise, they want to go with them. But either way, they want to be able to access that data anywhere it is on any infrastructure. >> What's the business relationship? What's the connection this year? And just take a minute to describe that for the folks. >> Yeah, no, it's really evolved from a purely technical relationship where all of our technology integrates with all the different HP stack, but it's evolved. As more customers wanted more solutions, they want more of the packaging coming together as a bundle or even appliances, we've been working closer on the go to market side where our partners were kind of pulling these together. And so in November, we announced a global reseller agreement, an OEM agreement with HP that allows HP now and HP partners to resell Veeam as a solution with HP hardware, together or separate, into an HP customer. And so that's been a win for HP because they focus on a data protection solution and always on. >> It's good for the portfolio. I mean they got another club in their bag, so to speak. You guys get a nice pop. >> The brand and their channel, right? And so I think the data protection story and the solutions that HPE can bring together is really compelling. And for us, they've got a broad go to market organization that we can leverage. >> Well, you kind of need each other. I mean you're coming upmarket. I mean the story of Veeam is actually quite amazing. You booked over half a billion dollars, I think 600 million last year. >> Peter: 607, yup. >> Never taken a dime of outside capital, which is outstanding. I guess extensively, want to remain private is sort of the narrative, but you really don't stress about that. >> We're owned by two people. It's pretty simple, and they brought me in to grow a long-term sustainable software company, right? That's my job. That's what I do everyday. What they want to do at some point in time in the future, that's really up to those two. But for me-- >> How does a company go from standing start to over half a billion with no outside capital? >> Great technology. I mean I think from day one, if you've known Veeam, you know that the technology has always been, we use the saying it just works, and our customers will say it. And we have a very loyal customer base. 73 was our score in MPS, which went from 63 to 73. So customer loyalty, strong. Good culture, good company. We've added 1,000 people over the last 12 months. We're going to add another 800 over the next. So good company, good people, 45,000 partners that we've added across the globe. >> And you showed a slide at VeeamON which I want to share with the audience. Again, it was outstanding. It was Workday, Salesforce, and ServiceNow. And essentially, you showed that you're actually going to achieve, on track to achieve a billion faster than those companies. >> Yeah, that's our goal, 2018, to get there, 800 to a billion. I mean that's our internal goal, right? I came in, set a high bar, and we're all working towards that. We're on track. >> And you share that, you're transparent about it, which is kind a unique. >> We did it with our partners and more detail with our partner ecosystem, so they know what we're trying to do and what we're expecting of them, right? Because this is how it has to work. >> You have a shared interest there. Everyone wants that same direction. >> We're 100% channel, right? So it's not like we're taking these deals direct, and we're going to take theirs. >> Oh, you know, the channel, you have to fake the channel once, you're done. You really got to be straight up with them and make them money too. (laughs) >> Just like our customers, our partners are extremely loyal to Veeam. >> All right, I got to ask you, we see a lot at VMworld, and we got that coming up. theCUBE will be there live. Actually, their deal with Amazon points to the hybrid cloud. That's the story here. Hybrid and cloud certainly changed the game on backup recovery, all aspects of storage in the software. What's your vision there? And share with the folks what that means for them as they think about their architectures, the hybrid. >> What it means to VMware? >> No, what it means to the customer who sits there going, "Okay, I've seen all the signals. "I've got VMware. "Now I'm seeing it with Amazon, the relationship, "that's a hybrid cloud path." >> I think up till a little while, up till that announcement, I think it was a lot of the kind of niche use cases, a lot more of the kind of simple workloads were going into Amazon and Azure. But not a lot of the mission critical were kind of moving in that direction yet. With VMware moving to Amazon, it's opened up the door because now, all of them are using vSphere as part of their mission critical apps. So now it's kind of like the door has been opened to moving more of these mission critical into Amazon, which I think was a great move for VMware, great move for Amazon because they want the mission critical. VMware wants to stay, keep everybody on vSphere. And for us, we're extremely close and tied to VMware, and we are moving closer to Amazon. So it's a win for us, and we'll be the first to be in that environment. >> I saw the magician out there on the floor, all these Benjamins, throwing the money around. You guys are doing well. You're making some money for your partners as well on the channels. It's a great strategy. Your observation here at HPE Discover, what's your observation of what's happening here at the event and some of the takeaways? >> So I started my career, a big company, then I did three kind of earlier stage, and then back to big companies, VMware and in here. The line we always use in kind of building a business is focus, focus, focus. And I think what I see is HPE more focused, more focused than ever. It's a tighter message. The vision that they have is so much more clearer. And that's just not my observation. That's the feedback I get from the ecosystem and the customers that we're talking to, that they like it. It allows them to get a much clearer understanding of the HPE direction and where they're going and when they're placing their bets. >> And top three priorities for you guys at Veeam over the course of the next six to 12 months, your goals for the company. >> So we look at it in terms of the pillars. Obviously, the enterprise is a major investment area around the globe, as you said, to go upstream. And so we used to do purely virtual, as you mentioned, and now we do physical. Now we do cloud extension. So we have all that. We think we have the platform for the enterprise. Not to say we don't want to continue to do that, but enterprise is number one. Cloud and obviously, it's having that ability for customers to move workloads anywhere, kind of that orchestration of those workloads. That's a critical initiative for us. And then for me, it's look it, the business is going well. Don't screw it up. Got to keep the S&P going, keep the commercial-- >> Hands on the wheel, hold it straight. >> Do all this other good stuff but don't drop the ball on the other side. What do they say about a doctor? First, do no harm, do no harm to the business and then grow it over here. >> And that's your role and your co-CEO's role, is to really keep that innovation engine going, right? >> Yes. >> I mean near CDP and like you say, bare (mumbles). I mean that's the development track that-- >> And I think you will see us kind of expanding that a little bit and maybe some inorganic. We've acquired, we've accumulated a nice balance sheet that allows us to do some creative things that maybe we'll talk about at the end of the road. We announced one in TWS, which is a company that was in the Amazon marketplace that has opened up some more opportunities for us. We're going to continue to invest and acquire as we go to compliment some of the things that we've been doing very successfully on organic growing. >> David: Amazing. >> Peter McKay, co-CEO of Veeam. Thank you for coming on theCUBE and sharing your insight, and thanks for the commentary. More live coverage from HPE Discover 2017 after this short break. Stay with us. (upbeat electronic music)
SUMMARY :
brought to you by Hewlett Packard Enterprise. (mumbles) check the signal for the noise. from the time we got here yesterday. It really speaks to the change of HPE. all the pieces and having to pull that together. at VeeamON, one of the things you talked about. and I have to go to some other spot. So I wonder if you could talk about that strategy, that's in the cloud, but I want to be able to back up And just take a minute to describe that for the folks. on the go to market side where our partners I mean they got another club in their bag, so to speak. go to market organization that we can leverage. I mean the story of Veeam is actually quite amazing. the narrative, but you really don't stress about that. to grow a long-term sustainable software company, right? We're going to add another 800 over the next. And essentially, you showed that you're actually Yeah, that's our goal, 2018, to get there, And you share that, you're transparent about it, Because this is how it has to work. You have a shared interest there. So it's not like we're taking these deals direct, You really got to be straight up with them our partners are extremely loyal to Veeam. Hybrid and cloud certainly changed the game "Okay, I've seen all the signals. a lot more of the kind of simple workloads I saw the magician out there on the floor, and the customers that we're talking to, that they like it. at Veeam over the course of the next six to 12 months, around the globe, as you said, to go upstream. First, do no harm, do no harm to the business I mean that's the development track that-- And I think you will see us kind of expanding that and thanks for the commentary.
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