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Twitter isn’t the only technology IPO this week. Security and backup vendor Barracuda Networks began trading on the New York Stock Exchange Wednesday with promising initial results.
While Barracuda is still more security than storage, CEO BJ Jenkins said backup makes up about one-third of Barracuda’s new business, and is increasing year-over-year at a faster rate than the 26% overall market growth.
He attributes that to Barracuda’s end-to-end data protection approach. While it still sells its backup software standalone, most deals are for integrated appliances along with cloud subscriptions for backup and disaster recovery. Barracuda maintains its own multi-petabyte cloud, and Jenkins said most of its backup appliance customers also use it.
“If you back up into the cloud and have an issue locally, you can spin up a virtual server in our cloud and run your business off a deduped backup copy,” Jenkins said. “This end-to-end offering as made a big difference. Customers used to buy Symantec and some kind of disk and tape, and rotate tapes and do replication for DR.”
Barracuda sells mostly to SMB and mid-range companies, competing primarily with Symantec Backup Exec.
Jenkins, who ran EMC’s backup division before becoming Barracuda CEO in Nov. 2012, said one reason Barracuda went public is to gain more credibility with customers who want to know their security and data protection vendors are stable companies. Unlike flash vendor Violin Memory’s first day as a public company, Barracuda’s price rise in the hours after its IPO. Barracuda began trading at $18 – the low end of its projected range – but its shares closed at $21.55 Wednesday.
“I feel good about the first day of trading,” Jenkins said. “We were fortunate to get out before Twitter. They’ve taken a lot of oxygen out of the air.”