Cohesity Increases Revenue 600 Percent in 2017, Validating Global Enterprises’ Need for Hyperconverged Secondary Storage

Milestones Include New Global Enterprise and Federal Customers, Series C Funding, Product Innovation, Analyst Accolades, Strong Partner Momentum, Spacious New San Jose Headquarters, New Executives, and an Overall Doubling of Headcount

San Jose, CA – Jan. 9, 2017 – Cohesity, the pioneer of hyperconverged secondary storage, today announced accelerating global enterprise and federal agency adoption, leading to a 600 percent increase in 2017 sales revenue. Over the past eight months, Cohesity’s new customer count doubled and includes a dozen Fortune 500 companies. In addition, more than half of all customers deployed Cohesity cloud services. International business continues to be a major strength for the company, generating over 30 percent of bookings last year, validating the strong global demand for Cohesity solutions.

Growing revenue and customer demand are fueling dramatic company expansion, including a doubling of employees, a move to the company’s new San Jose headquarters, and the opening of a new office in Research Triangle Park (RTP). The company and its products garnered multiple accolades in 2017 and attracted significant new executive leadership, alliances and channel partnerships.

2017 Accomplishments

Accelerating Customer Growth

• Global Fortune 1000 companies and federal agencies increasingly rely on Cohesity for data protection, driving a 600 percent year-over-year revenue increase in 2017. Nearly half of all customers made repeat purchases in 2017 resulting in many installations exceeding 1 petabyte of Cohesity storage. Adoption is strong across all industry sectors including financial services, healthcare and pharmaceuticals, media and entertainment, high tech, and federal. More than half of all customers deployed Cohesity’s cloud services.
• A sampling of significant new customers across industry sectors include Verizon subsidiary XO Communications, the Department of Health and Human Services, the Department of Energy, the U.S. Air Force, leading environmental processor Valley Proteins Inc., University of California at Santa Barbara, and European IT service provider Thekking.

Global Company Expansion

• Cohesity’s growth has been fueled by a $90 million Series C funding round co-led by investors Google Ventures and Sequoia Capital with participation from strategic investors Cisco Investments and HPE, along with venture investors Accel, ARTIS Ventures, Battery Ventures, DHVC, Foundation Capital, Qualcomm Ventures, Trinity Ventures, and Wing Venture Capital.
• Cohesity christened its new San Jose headquarters on December 11, 2017, with a ribbon-cutting ceremony that included San Jose Mayor Sam Liccardo and City Councilmember Raul Peralez (District 3). The company tripled the size of its former office to accommodate the doubling of its headcount to more than 300 employees in the past year with room for significant growth in 2018 and beyond.
• Strong international customer demand drove global expansion to serve the DACH region in Europe, with a new Cohesity DACH team in Germany, headed by Klaus Seidl, and the APAC region, with a new APAC headquarters in Australia.

Strengthening Executive Bench

• Today Cohesity also announced the appointment of its first Chief Marketing Officer, Lynn Lucas, a Veritas Technologies and Cisco Systems veteran. Lynn was hired to strengthen the leadership team and drive customer adoption and accelerate company growth.
• Cohesity also welcomed new Board Member Carl Eschenbach from Sequoia Capital, and five other new executives, including President and Chief Operating Officer Rob Salmon, Global Sales Leader Mark Parrinello, Vice President of Engineering Vineet Abraham, Vice President of Worldwide Channels Todd Palmer and Vice President of EMEA Sales Klaus Seidl.

Product Innovation

• Cohesity Orion 5.0, the industry’s first storage platform that combines end-to-end data protection and big data storage on distributed, infinitely scalable architecture, was launched in August 2017.
• The recently introduced Cohesity DataPlatform Cloud Edition now runs on Amazon Web Services (AWS).
• Cohesity also announced native integration with Pure Storage FlashArray//M and the availability of Cohesity DataPlatform Cloud Edition (CE) in Microsoft’s Azure Marketplace.

Analyst Accolades

• Cohesity was also honored to receive Gartner’s Cool Vendors in Storage Technologies, 2017¹ report authored by analysts Dave Russell, Arun Chandrasekaran, Julia Palmer, Raj Bala, Alan Dayley, Pushan Rinnen and Garth Landers at Gartner, Inc.
• Forrester named Cohesity in its Oct. 30, 2017, report Three Vendors Disrupting Integrated Secondary Storage And Data Protection Integrated Secondary Storage And Data Protection Will Gain Widespread Adoption In 24 Months authored by analyst Naveen Chhabra.

Industry Recognition

• More than a dozen organizations have recognized Cohesity, awarding accolades ranging from Forbes’ Next Billion-Dollar Startups 2017, LinkedIn’s “Startups: The 50 industry disruptors you need to know now,” and CRN’s 2017 Emerging Vendors to NorthFace’s ScoreBoard Award for Top-Rated Customer Service and Support, Bay Area News Group’s 2017 Top Workplace, and Europe’s SVC Award for “Hyperconvergence Company of the Year 2017.”

Strategic Partnerships

• More than 200 channel partners helped Cohesity expand into new regions and serve a broader range of customers. A partnership with Lenovo Global IT marked Cohesity’s first foray into China. In addition, CRN named Cohesity’s Head of Americas Channel to its prestigious list of 2017 Channel Chiefs.
• HPE developed and is reselling a pre-configured, certified scale-out Cohesity storage solution combined with HPE’s enterprise-class servers and network switches.
• As a member of the Cisco Solution Partner Program, Cohesity helps customers realize the benefits of Cohesity’s software defined storage solution on Cisco’s UCS and Cisco HyperFlex platforms.

Comments
The company’s 2017 achievements have been spearheaded by storage innovator and Cohesity Founder Mohit Aron, who has established himself as the “father of hyperconvergence.” He has more than 15 years of experience in building scalable, high-performance distributed systems — first at Google, where he was a lead developer on the Google File System and then as a co-founder of Nutanix.

“Cohesity is leading a massive transformation of the data center, converging silos of storage across the data center and multi-cloud environments, helping IT become more efficient, reduce costs, and do more with their data for their organizations,” said Mohit Aron, chief executive officer and founder, Cohesity. “The results of the last year have far exceeded our expectations, showing that hyperconverged secondary storage has transitioned from a groundbreaking new technology in 2016 to a critical, enterprise business solution in 2017.”

¹Gartner, “Cool Vendors in Storage Technologies, 2017” by Dave Russell, Arun Chandrasekaran, Julia Palmer, Raj Bala, Alan Dayley, Pushan Rinnen, and Garth Landers, May 12, 2017.

Disclaimer
Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Media Contacts
Jenni Adair
Head of Corporate Communications
650-400-1871
jenni@cohesity.com

BOCA Communications for Cohesity
cohesity@bocacommunications.com