The Veeamster, now fully US-owned and -managed, is back in the US federal business after trying and failing by buying and then selling N2WS. It has set up a subsidiary called Veeam Government Solutions, Inc.
Veeam bought N2WS in January 2018, but one customer became quite unhappy about that — namely the US government, which didn’t want its backups provided by a Russian-led and -controlled company. Consequently, Veeam sold N2WS back to its original founders in the third quarter of 2019.
Since then, US private equity business Insight Partners bought Veeam in January 2020 for about $5B, with Veeam becoming a US-owned and -managed company, and thus eligible to bid for US government contracts. Since then it’s been building up its federal business.
Veeam CEO Bill Largent said in statement: “To help accelerate our federal business, we hired Earl Matthews last summer to develop and lead our VGS team, as well as join the Veeam executive staff.”
Matthews is “An American government official and attorney who has held senior positions within the Department of the Army and at the White House. Earl’s expertise and impressive, extensive background in the public sector will accelerate our ability to reliably serve the current and future Modern Data Protection needs of federal customers during critical times.”
A Matthews statement read: “For the past decade, Veeam has delivered innovative data protection and data management solutions to government. We founded VGS to be even more hyper-focused on the highest level of security and nimbler in support of federal agency needs. We’re committed to continually finding better ways to serve the government, solve its biggest data challenges, and protect the information that is a strategic asset for everything government organisations do.”
VGS
Veeam Government Solutions (VGS) has its own board of directors and an independent advisory board.
VGS has US Navy DADMS, NIST – 1800-11, SOCOM Approved Products List (APL), and Section 508 certifications relevant to the US federal market. It says it has been sponsored by DISA and submitted for testing for the DoDIN APL, and is working to secure additional certifications important to federal organisations.
More bricks in its US federal business wall include announcing a DOD ESI Blanket Purchase Agreement with EC America, a subsidiary of immixGroup, an Arrow Electronics company, and a partnership with CACI, Inc. Federal. This is aimed to ensure a secure supply chain and provide auditable and traceable processes in line with the President’s May 12, 2021 Executive Order on Improving the Nation’s Cybersecurity provisions.
VGS has more than 1200 US government customers and says it’s focused on the backup and protection of mission-critical data for the US Department of Defense, Civilian Agencies, Native American Tribes, the Intelligence Community and Federal System Integrators.
Comment
We’re seeing the emergence of a superset of massive data protection companies — Acronis, Cohesity, Commvault, Dell Technologies, Rubrik, Veeam, and Veritas, with Dell probably the largest of them all in revenue terms. Our picture is fuzzy and we don’t have revenue numbers for all these suppliers.
Dell Technologies is public and IDC implied it had a $1.5B data replication and protection revenue run rate in 2020, with Veritas enjoying a $1B run rate.
Veeam said it passed a billion dollar run rate in May 2019, two years ago, and claims it could have larger storage software revenues than Dell by June 2023.
Commvault is the other public company in the list and reported $723.5M in revenues for its fiscal 2021. Any IPOs, such as potential ones from Cohesity and Rubrik, will providing more visibility into what’s going on in what’s becoming a billion-dollar data protection business suppliers’ club.
