Veeam unveiled the acquisition of N2WS, a small developer of data protection and disaster recovery offerings with native AWS cloud capabilities.
N2WS, based in Florida, said it is the largest provider of data protection AWS environments. Its technology provides an enterprise-class offering purpose-built for the AWS cloud with full support for EC2/EBS, RDS, RedShift and Aurora.
Veeam, which last year made an equity investment in N2WS, paid US$42.5 million for the company.
The initial investment Veeam made in N2WS gave the company an opportunity to closely watch how the AWS data protection market evolved, said Peter McKay, co-founder and CEO of Veeam.
"What was clear over the last couple of months is they just continued to exceed our expectations," McKay told CRN USA. "We saw that as very complementary to our business. So we looked at that, and with our equity position found it easier to buy."
N2WS will continue operations as a separate company under the name "N2WS, A Veeam Company."
Prior to the acquisition of N2WS, Veeam's cloud business was focused mainly on Microsoft Azure, the IBM Cloud, and VMware on Azure, McKay said. The company also worked with AWS, but did not have an AWS-native offering, he said.
"N2WS is natively developed for AWS," he said. "It's No. 1 or No. 2 in the marketplace. And it's enjoyed incredible success, really becoming a critical part of the AWS ecosystem from day one... It's natively developed, meaning it's focused on nothing but AWS. It's a tighter solution that is incredibly leverageable within the AWS environment."
Unlike Veeam, which runs a channel-only sales model, about half of N2WS's sales come directly via the Amazon Marketplace and half via indirect channels, McKay said. "Ultimately, it will be the Veeam channel that'll distribute N2WS," he said. "That's an opportunity for the Veeam channel to add AWS to their portfolio."
However, McKay said that Veeam will continue to offer N2WS via the Amazon Marketplace.
"People go to AWS for a workload," he said. "Yeah, we will keep that. But more complex, comprehensive workloads will typically go through a channel rep. That's what [N2WS has] seen. People want to try it, will maybe go to the [Amazon] Marketplace. But ultimately, their model is more indirect, traditional channel mode. And that's the way we want it."
McKay said that while N2WS will be run as a separate company, its technology will be integrated into the Veeam platform.
"People who buy Veeam can get a license of N2WS as well for 60 days," he said. "And when the fully integrated version becomes available, then they can upgrade to that version. So right off the bat we're going to allow the customers to leverage that technology as we're merging the technologies together."