CommVault Systems wants to have a lock on data management. The company provides software that customers use to store and manage enterprise data. Its Simpana software suite handles resource management, backup, archiving, data replication, disaster recovery, and search. Altogether CommVault counts some 20,000 customers that come from industries such as financial services, health care, manufacturing, and utilities, as well as from the public sector. CommVault's strategic partners include systems integrators and professional services firms, distributors and resellers, and technology providers. About 40% of its revenues are generated outside the US.
The company operates from 20 offices in the US. It has another 40 locations scattered across the Americas, Asia, and Europe. The US, however, is its largest market, accounting for almost 60% of sales.
Sales and Marketing
CommVault primarily uses a direct sales force to sell its Simpana software to businesses and government agencies of all sizes. Partnerships are also an essential component of its sales strategy. Companies such as Dell, Hitachi Data Systems, and NetApp resell Simpana and in some cases incorporate the software into their own hardware. (For example, Simpana is integrated with NetApp SnapShot and NetApp SnapProtect.) In addition, distributor Arrow Electronics holds a distribution agreement with CommVault and provides around 30% of sales.
Simpana’s software licenses are typically sold on a capacity basis, which allows customers unlimited use based on the amount of terabytes of data under management. Only about 20% of sales come from a per-copy basis or as site licenses.
CommVault has enjoyed a decade of straight revenue growth. In fiscal 2014 (year-end March) sales increased 18% to $586 million. The year the average amount of one of its software implementations was $272,000, up from $266,000 in 2013. Sales of both software and service are split 50-50. Profits also grew 20% in 2014 to $64 million.
With the growth of big data comes the need to securely protect, manage and access it, and CommVault sees substantial opportunities for its data management capabilities. Still, in order to keep up with technological advances, the company continually updates the Simpana line (Simpana 10 was released in 2013) in order to keep pace with evolving industry technologies. The company spent $55 million on research and development in 2014 (9% of sales) and maintains two software development centers in India.
The company was founded as an independent segment of Bell Laboratories in 1988; senior management (backed in part by funding from Sprout Group) purchased the company's assets from Lucent Technologies in 1996.