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Interview With Sanjay Poonen, CEO of Cohesity

In this special edition of Analyst Angle, Christophe Bertrand speaks with Sanjay Poonen, CEO of Cohesity, about the completion of the acquisition of Veritas’s enterprise data protection business.

Watch the full video here:

Sanjay Poonen discusses the acquisition of Veritas’s data protection assets

Cohesity has successfully acquired the Veritas Enterprise data protection business, positioning itself as the market leader in the data protection sector. Previously ranked seventh, this merger will boost their pro forma revenue to $1.07 billion for the last fiscal year and set them on a path to $2 billion. This acquisition marks a significant milestone, as Cohesity aims to be the fastest company to achieve $1.5 billion in revenue in the industry.

With a customer base of 12,000—including 85% of Fortune 500 companies—Cohesity combines Veritas’s scale with its speed and innovation, making this a historic deal in the sector.

The conversation discusses Cohesity’s impressive growth, rising from seventh to first in the data protection market within two years, mainly due to the acquisition of Veritas’s NetBackup business. This acquisition enhances Cohesity’s portfolio, combining solutions like hyper-converged data protection, NetBackup, and Alta, with Helios as the unifying platform. The projected revenue for 2023 is around $2 billion, with a market share expected to surpass 20%, putting them ahead of competitors.

Quick Analysis

This acquisition’s completion, announced earlier this year, marks a significant milestone in a broader context characterized by market consolidation and a surge in substantial investments within the data protection sector. This landscape is evolving rapidly, driven by an increasing recognition of the critical need for robust cyber resilience among organizations of all sizes, from large enterprises to small businesses. As digital transformation accelerates, companies are becoming more aware of the vulnerabilities inherent in their operations, creating a prime environment for investing in innovative solutions that address these emerging challenges.

Cohesity is now well-positioned to strengthen its newly acquired market leadership amidst this dynamic framework. The integration of its latest acquisition is strategic and essential in fortifying its offerings to ensure that businesses can effectively safeguard their data in an increasingly hostile cyber environment. However, it is crucial to recognize that as a newly established industry leader, Cohesity now presents itself as a considerable target for competition. Rival organizations will undoubtedly aim to challenge its position, which adds pressure to sustain its competitive edge.

To maintain this leadership stance and successfully achieve Sanjay’s ambitious objectives, the company must focus on executing and delivering in several critical areas:

  • Firstly, continuing, if not accelerating, product innovation will be paramount. Given the rapidly evolving nature of cyber threats, Cohesity must invest in developing cutting-edge features that meet current market demands and anticipate future needs. Leveraging ML/AI will be critical. 
  • Customer engagement and support will be vital in retaining and expanding its customer base. Building strong relationships with clients (especially the Veritas Netbackup base) and providing exceptional support can significantly differentiate Cohesity from its competitors by fostering loyalty and advocacy.
  • Strategic partnerships with other technology providers will enable Cohesity to expand its market reach and enhance its product offerings. I expect Cohesity to continue building on both its cyber-resilience partnerships and the AI alliances. Integration is essential and I believe that with proper execution, they can be greatly differentiating.
  • A strong marketing strategy is vital for effectively conveying the value proposition of Cohesity’s products and services. As competition grows, it is essential to “loudly” communicate how Cohesity can help businesses enhance their cyber resilience. This clarity will be necessary for attracting market interest and securing customer investments, particularly given the risks associated with customer base transitions and retention that come with the acquisition.

The acquisition places Cohesity in a strong position within the data protection landscape. Overall, I expect a notable increase in competition within the enterprise segment of the market. Additionally, I foresee a rise in mergers and acquisitions in areas closely related to traditional data protection, particularly in the cybersecurity sector. As companies focus on enhancing data and cyber resilience, the market will likely see significant growth, often described as the “pie” expanding.

However, with this expansion comes a set of complexities that cannot be overlooked. Industry leaders must navigate the challenges of selecting the appropriate partners who align with their strategic goals. As highlighted above, leveraging application programming interfaces (APIs) will also play a crucial role; finding the right API solutions can significantly impact overall performance and market positioning.

Also, determining the best routes to market will become increasingly difficult as more players enter the space. As competition intensifies, leading vendors must adopt innovative strategies and stay agile to maintain their competitive edge. While data and cyber resiliency opportunities are expanding, the path forward will require careful consideration and strategic planning to ensure success in a rapidly evolving landscape.

This is an exciting market, and 2024 tees up an interesting 2025!  

Additional Coverage From Christophe

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