February 25 (Reuters) – Microsoft (MSFT.O) has made an undisclosed equity investment in Veeam Software as part of an expanded partnership to develop artificial intelligence (AI) products, the cloud data company announced on Tuesday.
Veeam’s software is designed to provide crucial data recovery capabilities for customers facing cybersecurity incidents, ransomware attacks, or accidental data loss. Its core product offers immutable backups, which prevent ransomware from modifying or deleting data, ensuring that clean copies are available for recovery even after a cyberattack.
This investment builds upon Microsoft’s existing interest in the cybersecurity space; the tech giant invested in data backup and recovery solutions provider Rubrik (RBRK.N) in 2021.
With Microsoft’s support, Veeam plans to focus on research and development investments and collaborative design efforts, among other initiatives. A key element of this expanded partnership involves integrating Microsoft’s AI services into Veeam’s products.
U.S. private equity firm Insight Partners, Veeam’s largest shareholder, sold a $2 billion stake in the company in a secondary sale in December of last year, which valued Veeam at $15 billion. Insight Partners acquired Veeam in 2020 for approximately $5 billion.
Founded in 2006, Veeam has grown to serve more than 550,000 customers worldwide, including prominent corporations such as Deloitte and Canon, according to its website.
