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Veeam acquires AWS disaster recovery provider N2WS in first acquisition in a decade

Veeam Software has spent the last decade growing organically, but after a very successful 2017, a new year marks a new company direction that includes expanding with a little external help.

Veeam has officially acquired N2WS, a cloud-native enterprise backup and disaster recovery provider for Amazon Web Services (AWS), for $42.5 million USD in cash. N2WS is a leader in infrastructure as a service (IaaS) data protection specifically for AWS workloads so that organizations can back up their information and applications and recover them in seconds if something were to happen.

The acquisition ensures business continuity and reduces risk for AWS workloads, and expands the reach of Veeam’s Availability Suite, which uses virtualization, storage, and cloud technologies in the data centre to help organizations save time, mitigate risks, and reduce capital and operational costs, according to a Jan. 16 company release. Sales of the Availability Suite grew by 48 per cent in 2017.

“As enterprises look to migrate more workloads to the public cloud, having a robust and intuitive data protection and Availability solution is imperative,” Peter McKay, co-CEO and president at Veeam, says in the release. “By combining Veeam’s industry-leading capabilities in protecting virtual, physical and cloud environments with N2WS’ leadership in AWS data protection, we have a strong solution to deliver on the needs of the digital enterprise… Together, we will achieve great things; this is a game-changer in every sense!”

Veeam had its most successful year ever in 2017, reaching $827 million in total bookings revenue, an increase of 36 per cent year-over-year (YOY). It reported a 62 per cent growth in enterprise deals and a massive 500 per cent annual growth for deals over $1 million.

N2WS has also been incredibly successful in the last 12 months, McKay adds, noting that the company has grown its revenues by 102 per cent in 2017. It will operate as a standalone company, keeping its brand name and offices in the US, UK, and Israel but becoming “a Veeam company”.

Jason Judge, CEO at N2WS, says this move is exciting for both the N2WS team and its customers. He will continue to lead the company as its CEO.

“We will further accelerate our rapid growth and the development of our top-rated solutions by leveraging the world-class team that Veeam has established. We also look forward to assisting Veeam customers explore their public cloud strategies with our years of innovation in public cloud storage,” he adds.

With the IaaS market expected to reach $88 billion USD in 2022, it is the fastest growing cloud segment. AWS controls almost half of the market today (44.2 per cent) and has been looking for better data protection solutions to minimize downtime and meet compliance requirements, so this acquisition comes at a perfect time.

“The acquisition of N2WS positions Veeam squarely in the thick of this rapidly growing market segment [IaaS]. Moreover, with the integration with Veeam Availability Platform, customers will have a single point from which to manage their on-premises and cloud data protection policies and activities when backed up by Veeam,” Phil Goodwin, research director at IDC, explains in the release.

In particular, this acquisition means: