Commvault Acquires Clumio to Bolster AWS Data Backup & Recovery Capabilities

Commvault, a publicly traded software company specializing in data protection and management, has announced its intent to acquire Clumio, a prominent data backup and recovery provider focused on AWS workloads. This strategic acquisition is expected to close in early October, marking another significant move in the data management and cyber resilience landscape.

• The deal, which is expected to be funded with cash on hand, is not deemed material to Commvault's earnings.
• Clumio, founded in 2017, has established itself as a leading provider of data backup and recovery solutions specifically tailored for AWS environments.

Clumio's Track Record and Growth

Clumio, headquartered in Santa Clara, California, was founded by Poojan Kumar, Kaustubh Patil, and Woon Ho Jung. The company has garnered a strong reputation for its focus on protecting AWS workloads and has expanded its offerings to include support for Microsoft 365.

• By February 2024, Clumio had achieved double-digit millions of dollars in annual recurring revenue, reflecting a remarkable 400% growth from 2022 to 2023.
• The company has secured a notable client base, including prominent names like Atlassian, Duolingo, and LexisNexis.

Strategic Rationale for the Acquisition

The acquisition of Clumio aligns seamlessly with Commvault's ongoing strategy to enhance its cyber resilience offerings, particularly within the rapidly growing AWS ecosystem. By integrating Clumio's expertise and technology, Commvault aims to expand its capabilities and provide enterprises with a more comprehensive suite of solutions for data protection and recovery.

• Commvault's CEO, Sanjay Mirchandani, emphasized that Clumio's cloud-native offerings complement Commvault's existing cyber resilience tools, enabling the company to deliver expanded choices for enterprises seeking to safeguard their data and cloud-native applications.
• The acquisition strategically positions Commvault to capitalize on the burgeoning demand for data backup and recovery solutions in the AWS environment.

The Significance of the AWS Data Backup & Recovery Market

The data backup and recovery market is experiencing substantial growth, driven by the increasing adoption of cloud computing and the escalating threats of cyberattacks and data center disasters. This acquisition underscores the strategic importance of this market segment and Commvault's commitment to addressing these growing challenges.

• Market research firm KBV Research estimates that the global data backup and recovery sector was valued at $12.9 billion in 2023 and is projected to experience a compound annual growth rate (CAGR) of 10.9% from 2017 to 2023.
• Ransomware attacks and data center incidents like the OVH fire in 2021 continue to highlight the critical need for robust data backup and recovery strategies.
• Emerging regulations such as the EU AI Act further underscore the importance of data management and retention practices, creating a favorable landscape for data protection and recovery solutions.

Commvault's Acquisition Strategy and Continued Growth

This acquisition of Clumio marks a significant milestone in Commvault's acquisition strategy, following its recent acquisition of cloud app resilience company Appranix earlier this year. The company has a history of strategic acquisitions, including the acquisition of software-defined storage startup Hedvig and cybersecurity company TrapX. These acquisitions reflect Commvault's commitment to expanding its portfolio of solutions and strengthening its position as a leading player in the data protection and management space.

• Commvault's Q1 2025 results exceeded expectations, demonstrating strong performance and financial stability. The acquisition of Clumio is expected to further fuel Commvault's growth trajectory.
• The company's history dates back to 1988, when it was established as a development group at Bell Labs focusing on data management. Commvault was later spun off as an independent enterprise in the late 1990s and went public in 2006.

The Implications of the Acquisition for the AWS Ecosystem

The acquisition of Clumio signifies a major development in the AWS ecosystem. It underscores the growing importance of data backup and recovery solutions tailored for cloud-native applications and services. Commvault's acquisition of Clumio is likely to create a more competitive landscape for AWS-focused data protection and management solutions, potentially driving innovation and advancements in the sector.

• The integration of Clumio's AWS expertise with Commvault's broader capabilities is expected to benefit AWS customers by providing them with a more comprehensive and robust data protection and recovery solution.
• The acquisition is expected to strengthen Commvault's position as a leading provider of software-as-a-service (SaaS) solutions for cyber resilience, particularly in the AWS environment.