Commvault Systems announced its acquisition of Clumio,, a startup specializing in backup solutions for public cloud environments, with a primary focus on AWS and Microsoft 365 environments.

The deal’s financial terms were not disclosed, though Commvault stated that the acquisition price is “not material” and will be financed using its existing cash reserves.

Who is Clumio?

Clumio specializes in providing cloud-native backup and data protection solutions, with a strong focus on AWS environments.

Key features of Clumio’s platform include:

• S3 Direct Access: AWS customers can access a read-only backup copy of their data while the primary version is restored.
• Selective File Restoration: Enables businesses to restore individual files instead of entire data sets.
• AWS Data Protection: Clumio supports backing up data in AWS’s object storage, block storage, and SQL databases within Amazon EC2 instances.
• Microsoft 365 Backup: The platform also offers backup solutions for Microsoft 365 environments, including creating immutable backups resistant to tampering or ransomware attacks.

Clumio has raised over $260 million in venture capital funding, with the latest being a $75 million Series D round announced in early 2024. Its strength in secure, cloud-native backup solutions has found good traction with enterprise customers operating large-scale AWS environments.

Financial & Operational Fit

Commvault said that the acquisition will be immediately accretive to revenue, with expected boosts to free cash flow within three quarters. Given that Clumio had secured over $260 million in venture funding and reported annualized recurring revenue in the “double figures of millions,” this acquisition brings valuable revenue streams and SaaS capabilities that could prove crucial to Commvault’s growth ambitions.

The deal enhances Commvault’s operational capabilities by integrating Clumio’s cloud-native architecture into its broader platform. Clumio’s Saas-based delivery aligns with Commvault’s focus on flexible, scalable, and easy-to-manage backup solutions for enterprises.

Analysis

Commvault’s acquisition of Clumio is a strategically sound move that builds on its already strong cloud-native data protection offerings. With the addition of Clumio’s cloud-native capabilities to its already strong hybrid and multi-cloud offerings, Commvault will be better equipped to address the diverse needs of enterprises modernizing their infrastructure.

The acquisition comes as competition intensifies in the cloud data protection space. Established players like Veeam, Druva, and Rubrik are all vying for dominance, particularly in protecting cloud-native workloads.

The acquisition follows Commvault’s purchase of Appranix earlier this year, which focused on backup solutions for multi-cloud and hybrid environments. Together, these deals reinforce Commvault’s focus on the needs of enterprise customers in the growing cloud-native market.

Overall, Clumio complements Commvault’s broader portfolio, which already includes solutions for hybrid environments. By integrating Clumio’s technology, Commvault will be able to offer deeper and more refined capabilities for customers operating in public cloud environments. This is a natural extension of Commvault’s existing offerings and aligns with the market’s pivot toward cloud-native data management. This strong acquisition for Commvault should generate immediate returns while keeping the company a force in the cloud-focused data protection market.