Interview Synopsis

Data protection, insights & recovery solutions industry – Veritas, CommVault, Veeam, Cohesity, Rubrik, Druva & more

  • Private Equity
  • TMT
  • North America

Data protection has become non-negotiable for organisations, particularly in light of the EU’s General Data Protection Regulation. With technology developing at breakneck speed, the way that data-related risks are managed is also changing. Third Bridge Forum interviewed a former executive at Veritas Software and Druva Inc to discuss data protection solutions and the shifting competitive landscape.

Cloud to continue outshining legacy data protection providers

First on the agenda was how the industry is evolving, with the expert noting that, generally speaking, “if you’re looking for where the dollars are, it’s been in straight back-up and recovery in the data centre”. However, over the past 20 years the industry has become much more fragmented, they explained, noting how companies like CommVault, VMware, Data Domain and Veritas, among others, sought to disrupt the market. 

“That industry which was, call it a +20% CAGR, started to quickly go to 0% between, let’s say, 2018 and 2020 because the underlying trend that mattered the most over that 5-6-year period but really showed up in 2018, ’19, ’20 was cloud,” the specialist said. Cloud is having a major influence on how enterprises buy and build all kinds of applications, including data protection ones. The industry is now “one of further fragmentation” to “tens of important companies” with a niche focus.  

Although there has been some staying power for legacy providers, cloud is on course to supersede on-premise solutions, the expert said, noting that Dell is “playing a contrarian game”. They added that, for data protection providers, “the way that you’ll see that play out is no one is going to have a sudden death.” However, “as long as companies keep their eye on the ball of restore times and declining pricing, the game is over, in my mind”. 

The expert is bullish on the companies that serve the SaaS market, anticipating “30-50% YoY growth numbers vs legacy providers that are going to continue to give somewhere in the order of 10-15 points on renewals for data protection”. Druva, Veeam and Cohesity were highlighted as ones to watch. 

The expert was also asked for the overall market’s TAM over the next 1-3 years. “For me, I’m not a believer in any of the TAM statements. The reality is, of the legacy crew, when I say legacy crew, anyone that was founded, let’s say, prior to 2010, you’re going to see low to mid single-digit top line growth.” 

To access all the human insights in Third Bridge Forum’s Data protection, insights & recovery solutions industry – Veritas, CommVault, Veeam, Cohesity, Rubrik, Druva & more Interview, click here to view the full transcript. 

The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.

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