Arcserve’s MSP and VAR partners will benefit from the two companies becoming one as well, according to Signorello, by having more data protection products to sell.
“We believe that the folks that are most likely to succeed and to continue to gain market share are those that provide the most solutions—secure solutions, credible solutions—at the right cost point under one roof,” he says. “That’s what the market and the channel will see from us moving forward.”
Partners looking to offer a complete range of data protection services to their clients will also have fewer supplier relationships to juggle now, according to Brockett.
“We know that channel partners want to minimize the amount of investment that they have to do in training and vendor management and integrating platforms,” he says. “We think that by coming together we’re going to help partners get more ROI on the investment they’re making into our companies and get more return from a shared partnership.”
There will be financial advantages to selling both Arcserve and StorageCraft solutions for partners as well, according to Signorello. “You’re going to see us get very aggressive providing incentives from a cross-selling perspective, not only internally to our sales force, but just as much if not more out into the channel,” he says.
Arcserve and StorageCraft have been informally discussing a merger for the last three years. Active negotiations began some six to nine months ago. That both companies are enjoying solid growth at present made that process easier, Signorello says. “We both bring very healthy businesses into this marriage.”
Arcserve grew revenue 12% in its 2020 fiscal year and is on track to record 7% growth in its current fiscal year despite economic headwinds and supply chain disruptions caused by the coronavirus pandemic. Sales of StorageCraft’s OneXafe Solo disaster recovery appliance for small businesses, which officially debuted last April, are doubling every quarter, adds Brockett, who says the company has been increasing sales of cloud-to-cloud backup services at a 25% CAGR in recent years and expanding disaster recovery-as-a-service revenue at a 20% CAGR.
Both companies see further room for growth, citing a forecast by Cybersecurity Ventures that the total global volume of data in potential need of protection will reach 200 zettabytes, or 200 trillion gigabytes, by 2025.