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Cohesity Says Commvault Cloud Data Protection Lawsuit Is Without Merit

Commvault has filed suit against Cohesity and Rubrik, alleging that the fast-growing cloud data protection software firms violate seven Commvault patents related to data management technologies including cloud, data deduplication, snapshots, search, security and virtualization.

Lynn Lucas, chief marketing officer, Cohesity
Lynn Lucas, chief marketing officer, Cohesity

Cohesity Chief Marketing Officer Lynn Lucas says the Commvault lawsuit is without merit, stating:

“It is not uncommon for legacy vendors to attempt to disrupt the disruptors with frivolous lawsuits in an attempt to stifle innovation and sales. In this case, we were made aware of Commvault’s lawsuit not by their legal representatives but via the media. We believe there is no merit to this complaint, and we will of course stand our ground and defend our technology vigorously.

This complaint appears to be an attempt to slow our rapid growth and impede our accelerating success. Our view is that innovation can’t be stopped. We believe the market is excited about our vision and extraordinary solutions, as evidenced by our recent $250 million Series E funding round and the 100 percent increase we’ve seen in customers as well as data under management.”

Rubrik declined to comment about the lawsuit, according to ZDnet.

Ironically, the lawsuits surface after Commvault was late to the cloud data protection market, and at a time when activist investors are pressuring Commvault for business changes. Commvault CEO Sanjay Mirchandani, hired in 2019, has been striving to restore the company to growth.

Data Protection: Growing Market, Strong Competition

Meanwhile, Cohesity achieved the following milestones in the first half of fiscal year 2020, the company says:

  • 150 percent year-over-year increase in recurring revenue.
  • 135 percent increase in new and existing customers that have licensed its cloud capabilities.
  • 100 percent increase in customers and data under management.

With the Series E funding, Cohesity’s total financing to date exceeds $650 million, the company stated. The funding also increases Cohesity’s total valuation to $2.5 billion, which is more than double the valuation from the company’s Series D financing round in June 2018, the firm says.

Rubrik, also in venture-backed growth mode, is supported by former Cisco CEO John Chambers. Also, former Cisco Channel Chief Wendy Bahr is driving partner engagements as chief commercial officer.

Data Protection: Next Financial Moves?

Many of the industry players have been mulling various next-stage financial moves.

The private equity parents of both Arcserve and StorageCraft, for instance, apparently have been seeking suitors. And Datto has been mulling a potential IPO. Similarly, Kaseya — which owns data protection platforms such as Unitrends, has also been mulling a potential IPO.

Still, it’s a safe bet many of those financial plans now face delays or reconsiderations amid the coronavirus pandemic’s impact on worldwide economic activity.

Meanwhile, some data protection software companies completed major financial milestones ahead of the pandemic. Examples include Acronis raising $147 million led by Goldman Sachs, and Insight Partners acquired Veeam at a valuation of $5 billion — or a reasonable 5X annual revenues.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.