Backup and disaster recovery solutions provider Veeam Software recorded a 26% year-on-year increase in annual recurring revenue (ARR) for the second quarter of 2019.
This news comes after the company's May announcement that it had exceeded $1 billion in annual bookings.
In a statement, Veeam says the ARR increase is the result of the subscription pricing model it introduced earlier this year for all new products, including Veeam Availability Suite 9.5 Update 4, which is approaching 350 000 downloads since its release in January.
"As we continue to heavily invest in our R&D, sales and marketing, and partner ecosystem, we're seeing increased adoption of Veeam's subscription licensing among our customers across all regions worldwide," says Ratmir Timashev, co-founder and executive VP of sales and marketing.
"Each geography reported growth, which shows that as we move into act two of our evolution – the hybrid cloud – it's an exciting time to be at Veeam. Seventy-two percent of organisations are looking to embrace cloud data management and are transitioning to cloud strategies. We're excited to support their journey and meet data expectations as the number one player in cloud data management."
Phil Goodwin, IDC research director, says: "Transitioning from a licence model to a subscription model has been a challenge for many vendors, but Veeam seems to be doing so successfully.
"IDC research shows that more than 90% of organisations expect to use hybrid and/or multi-cloud data protection solutions within the next 12 months, and this is the sweet spot that Veeam is aiming for."
Timashev comments on his company's collaboration with strategic technology partners: "We expect to make additional partner announcements in 2H 2019 to further feed the demand of our partners to combine Veeam backup and data protection software with industry-leading hardware, storage and hyper-converged solutions.
"Our new 'With Veeam' programme, which is receiving overwhelming positive response, is just one strategy of how Veeam will innovate and collaborate with its technology partners to deliver a combined hardware-plus-software solution to enhance customer choice and flexibility."