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Vembu: The Biggest Little Data Protection Company You Probably Haven't Heard Of (Yet)
Vembu wants to do more to let people know that it exists—it wants its own name to be in the marketplace and attached to its products—especially after hearing from many customers who desire to know whom the products they rely on truly belong to. So, in the past year, Vembu established relationships with more VARs and reached out directly to select enterprise and midmarket segments. It added 400 channel partners, 180 VARs, and 300 customers in 2014 alone.

If it appears that this analyst is impressed with Vembu, he is. Vembu’s feature set surpasses what one might presume to come from a backup company that most folks (in North America at least) haven’t heard of.And although it would be easy to assume that some of Vembu’s capabilities are mere boasts, the hesitations wash away with the recognition that this is a vendor with ten years in the business, and that well over half its workforce are R&D engineers. Said another way, Vembu appears to have been quietly solving its customers’ backup challenges for more than a decade through technology, instead of marketing.

In fact, not only did Vembu not have a marketing team until 2015, but it also didn’t have a sales team to speak of. This is an incredibly engineering-focused company—one whose revenues and customers have accumulated through word of mouth. But now, Vembu is building out a solid U.S.-based sales and marketing engine focused on penetrating awareness among IT decision makers, especially decision makers in the SMB segment.

The product Vembu will push in 2015, BDR 2.0, could be a “game changer” for Vembu’s growth. BDR appears to have the potential to quite effectively address the varied requirements of small and midmarket businesses who run mixed physical and virtual IT environments and who also want to leverage the cloud.

If Vembu continues to invest as much into its North American marketing and channel outreach programs as it historically has invested into engineering its technology, then 2015 could be the year that a lot of SMBs discover the “secret” to solving a lot of their backup problems.

European and APJ businesses may know Vembu, but many U.S. IT organizations will be surprised by the solution set of this ten-year-old company that is launching its first concerted marketing push into North America.

Growing at 35% per year, Vembu branches out from its backup/recovery roots
Cloud­based backup/recovery is a cutthroat business with shrinking margins, commoditization and a surfeit of contenders trying to get a piece of the pie. The company's decision to push its resellers away from rebranding and into carrying Vembu's name on their services will give it much ­needed name/brand recognition in a crowded arena.

Vembu has grown its revenue 35% annually over the past two years and is on track to meet that mark in 2014. Key product additions this year include a suite of CRM applications and the introduction of on­premises virtual appliances (with physical appliances to come in the near future). The latter move puts Vembu in more direct competition with relatively well ­known players in the hybrid cloud backup battle.

Vembu is celebrating its 10­ year anniversary by exceeding the 60,000 ­customer milestone, sold mainly through its 4,400 channel partners. That compares with 55,000 customers and 4,000 resellers in February 2014. The company has added 400 resellers so far this year, and has begun to emphasize VARs in addition to its traditional target market of MSPs. Notable service­provider partners include Verizon's Terremark subsidiary, mindSHIFT Technologies, HostPapa and Hitachi Data Systems. The profitable Vembu claims to have exceeded 35% revenue growth in each of the past two years, and is on track for similar gains this year.

The company expects to have 200 employees by the end of 2014 (up from 160 in February), and 300 by the end of 2015. Most of its employees are near its headquarters in Chennai, India (with 65% engaged in R&D), but Vembu has been steadily expanding internationally. It opened an office in London this year, and relocated its US headquarters to Addison, Texas, where it expects to grow its workforce from 15 employees this year to 50 next year Vembu's worldwide distribution of partners roughly equates to its worldwide revenue distribution: 70% North America, 20% Europe and 10% AsiaPacific – a distribution that has remained fairly steady over the past year. However, although about 30% of its revenue comes from outside North America today, Vembu hopes to increase that to 50% in 2015. Key target markets for 2015 include the EU­5 countries, Scandinavia, Brazil and China

Ovum: Igel's Security Enhancements for Thin Clients
Thin client vendor Igel is enhancing the security capabilities of its products, both under its own steam and in collaboration with technology partners. Ovum sees these developments as important for the next wave of thin client computing, which will be software-based – particularly if the desktop-as-a-service (DaaS) market is to take off.

With hardware-based thin client shipments in the region of 4–5 million units annually, this market is still a drop in the ocean compared to the 270 million PCs shipping each year, though the latter figure has been declining since 2011. And within the thin client market, Igel is in fourth place behind Dell and HP (each at around 1.2 million units annually) and China’s Centerm, which only sells into its home market.

However, the future for thin clients looks bright, in that the software-based segment of the market  (which some analyst houses refuse to acknowledge) is expanding, particularly for Igel. Virtual desktop infrastructure (VDI) technology has stimulated this growth, but the greatest promise is probably in the embryonic DaaS market, whereby enterprises will have standard images for their workforce hosted by service providers.

ESG webcast: Multi-cloud Data Protection Trends and Best Practices
Is the multi-cloud here to stay and are enterprises really adopting this strategy? ESG’s IT Spending Intentions survey shows that 81% of current public cloud infrastructure customers use multiple CSPs and 53% expect the number of unique CSPs they use to increase over the next three years.
Is the multi-cloud here to stay and are enterprises really adopting this strategy? ESG’s IT Spending Intentions survey shows that 81% of current public cloud infrastructure customers use multiple CSPs and 53% expect the number of unique CSPs they use to increase over the next three years.

The proliferation of multiple cloud providers is far from being a point-in-time statistic and it is manly driven by companies’ desire to identify the cloud provider that best fits each application and workload.

Join Edwin Yuen, ESG Senior Analyst for Data Protection and Yesica Schaaf, Senior Director, Veeam® Cloud Marketing in the discussion of Availability in multi-cloud environments to learn more about:
  • Current and upcoming trends in multi-cloud adoption, as well as considerations driving these market shifts
  • Challenges associated with increased IT complexity and multi-cloud deployments
  • How Veeam is helping its customers address multi-cloud and Data Availability: South Oregon University, Goodwill, Columbia Power & Water Systems and Movius
  • And much more!
IDC: Delivering on the Value of Managed Cloud Services
Managed cloud services are growing rapidly. This IDC report takes an in-depth look at the not only the value of managed services to enterprise buyers but also critical considerations that providers competing in this market need to make to ensure success. This report will assist providers in developing their market and competitive position, brand perception, potential investments, and selecting ecosystem partners.
Managed cloud services are growing rapidly.  This IDC report takes an in-depth look at the not only  the value of managed services to enterprise buyers but also critical considerations that providers competing in this market need to make to ensure success.  This report will assist providers in developing their market and competitive position, brand perception, potential investments, and selecting ecosystem partners.

Get the free report and learn:
  • Three approaches to position your offerings in the market
  • How to align your brand with the value of managed cloud services
  • How to navigate the ecosystem of partners who can help you deliver services
  • Critical investment areas including service integration and DevOps
  • Steps for building a cloud service provider business model blueprint