Why Did Acronis Acquire nScaled?

nscaled acquired - big fish eats the small

nScaled’s acquisition will boost Acronis’s cloud data protection and will add Disaster Recovery-as-a-Service (DRaaS) to the Acronis portfolio

Acronis, a Woburn, MA-based backup software company announced last week that it acquired nScaled, a disaster recovery software firm, based in San Francisco, CA. This is the second acquisition this month for Acronis, and this marriage will definitely bolster Acronis’s disaster recovery capabilities.

Earlier this month Acronis announced the acquisition of a Dutch cloud backup firm, BackupAgent. The purpose of BackupAgent’s acquisition was to offer it as a value-add tool to their service provider partners. BackupAgent was founded in 2005 and has more than 50,000 customers worldwide.

Acronis says that its customers using Acronis Backup-as-a-Service will now have the ability to restore their systems to the cloud in the event of a disaster. According to a prepared statement, nScaled allows Acronis partners to “be able to offer a complete hosted backup and disaster recovery solution to their customers.”

“Acronis has delivered an advanced backup solution for years with full system backup, and the ability to restore to any hardware,” said Serguei Beloussov, CEO and co-founder of Acronis. “Then we added Acronis Backup-as-a-Service to provide cloud storage for backup data.”

Beloussov added, “With the addition of nScaled technology, we provide a capability to restore to the cloud, and customers can restore their operations without waiting for replacement hardware to restore on-premises. Now, Acronis provides the most complete, easy and safe cloud backup solution for any infrastructure and any environment.”

“Businesses have become ever more dependent upon data, and their operations can no longer afford downtime. Ensuring the availability and reliability of IT services is critical to supporting customers and internal users,” said Bradley Kolb, CEO of nScaled. “As part of the Acronis team, nScaled will have access to even more resources globally to further evolve our disaster recovery services, delivering enhanced protection of our customers’ IT infrastructure, applications and data.”

Why Acquire nScaled?

nScaled provides an all-in-one solution for disaster recovery, data retention, and backup to customers with zero tolerance for data loss or downtime. Among nScaled’s customers are banks, law firms, hospitals, manufacturers, retailers, and universities. nScaled is based on a global network of remote cloud data centers plus the on-premise Local Cloud Appliance, all managed as one secure, seamless infrastructure. Founded in 2009, the company was funded by leading venture firms Almaz Capital and Doughty Hanson Technology Ventures. nScaled has hundreds of customers in North America and the UK, and manages petabytes of storage and more than 1,500 servers in a global network of geographically distributed cloud data centers. Presently, nScaled has petabytes of data under management; and runs thousands of servers in its Dallas, Ashburn and London, UK data centers. Therefore, it makes a perfect sense that Acronis acquired nScaled.

Acronis’s main reason for acquiring nScaled looks like plans to build a cloud/hybrid data protection platform. This means that with the addition of nScaled, Acronis can build out its own cloud storage platform, and also offer a standalone disaster recovery product that will have its own customers and revenue streams. Acronis’s backup-as-a-service solution delivers cloud storage for backup data and nScaled solves the “restore to the cloud” problem. Acronis BaaS users will be able to restore in the cloud in the event of a major disasters like fire, flood, earthquake, etc.

Acronis has been in the backup space since 2002 and has grown to more than 650 employees — out of which 90 employees are based in Woburn, MA — in 18 countries. Acronis has plans to achieve a billion dollar revenue target as per its forecast press release. It would be difficult achieving such a huge revenue goal without acquiring companies. Founder and CEO Serguei Beloussov, who returned back to Acronis after he left the company for over two years, has vowed to re-structure the company and also focus on the cloud. Acquiring nScaled will definitely add value to its offerings.

Going Forward

Acronis will now be cloud ready with this acquisition. “Customers currently using Acronis Backup-as-a-Service solution will get a capability to restore their systems to the cloud in case of disasters, and quickly restore operations if replacement hardware is not available.”

According to a published press release, Acronis has “more than 50 advanced backup and recovery technologies developed to date with over 4.5 million consumers, small and medium businesses, and service providers employing Acronis products to protect their critical data.” However, the company has been operating as an engineering firm for the past many years, without giving much attention to its strategies, such as marketing. But, with the founder and CEO back at the helm, things are starting to change.

The disaster recovery market is operating in a crowded space, where other players like Unitrends, Barracuda, Zetta.net are vying for dominance. When it comes to moving large amounts of data, Zetta.net’s performance is second to none, and it remains to be seen how Acronis will fare in this regard.

The company plans to add up to 70 employees globally, with up to 15 of those being added in the Woburn office, according to a company spokesman.

Acronis recently added top talents to its executive team: Pat Hurley, General Manager of North America; Jan-Jaap Jager, General Manager of Emerging Markets; Jeff Stiles, Chief Marketing Officer; and Yury Larichev, President, Global Operations.