Top Microsoft 365 Backup Vendors & Market Size

To summarize performance, we rank vendors based on scale and momentum (NTM growth × revenue), as we believe this provides a useful view of the competitive landscape.

Notably, the market performance is closely aligned with vendors' product capabilities (reviewed separately, see the blog post here). With few exceptions, vendors with stronger products have greater market share and stronger momentum.

Below, we discuss the market positions of the top three vendors, followed by a more detailed review of our revenue estimates and descriptions of other backup vendors in the next chapter.

Total backup vendor revenue is the vendor’s backup-attributable annualized revenue; the measure excludes revenue from resale and OEM-ed solutions powered by other vendors. Growth momentum is the estimated next 12 months (NTM) underlying growth rate, normalized to exclude short-term effects from product migrations and pricing actions (e.g., VB-to-VDC migration), as well as M&A-related vendor displacement, and synergies. The $15.1bn total backup market is based on 6.3% growth applied to IDC’s 2025 market estimate of $14.2bn.

Veeam

Veeam started as a backup software vendor for VMware in 2008. It built a trusted brand around a simple, reliable VM backup product. It later expanded to Hyper-V and physical servers/endpoints, and it launched Microsoft 365 backup in 2016, earlier than most major backup vendors.

Until 2023, Veeam sold its M365 backup as self-hosted software, which helped create an ecosystem of service providers that used the software to provide hosted M365 backup services. In effect, Veeam built a broad SaaS distribution network without operating the service itself.

Veeam launched its own SaaS backup in 2023, following its acquisition of CT4 (one of Veeam's service providers). But by then Veeam's early entry, trusted brand and service provider channel had already made it the largest Microsoft 365 backup vendor. Since 2023, a significant share of Veeam's M365 growth has been driven by migrations to its direct SaaS offering, a shift that likely created friction with the very service providers that invested in hardware to help Veeam build its M365 business.

AvePoint

AvePoint built its early business around on-prem SharePoint, with its DocAve tool used for SharePoint migration and administration. As Microsoft moved to Office 365, AvePoint followed, launching cloud backup for SharePoint Online and Exchange Online in 2013.

The company raised roughly $300m in 2014-2019 to scale its business, adding compliance, records management and productivity features to its software. In 2021 it went public and by 2025 AvePoint's data protection revenue exceeded 50% of recurring revenue, making M365 backup the core businesses for the company.

Afi

Afi.ai's revenue is not itemized below. As a private company, we do not report revenue figures. However, Afi is one of the fastest growing vendors with outstanding customer loyalty and retention rates, and it ranks among the leading vendors.

Afi data protection platform is based on new tech developed in 2020-2025, rather than adapted from legacy on-premises backup software. Its architecture is built for SaaS workloads, with native AI capabilities, high performance at petabyte-scale, and no technical debt or legacy constraints. Afi growth is 100% driven by strong product emphasis, as opposed to aggressive sales & marketing; Afi is exclusively focused on Microsoft 365 and cloud workloads, offering unique product capabilities (instant tenant-wide content search, full-fidelity M365 backup, and advanced security available in all plans to all customers).

Veeam

Veeam disclosed 16m M365 customers (including 6m VCSP licenses) at the time they launched Veeam Data Cloud in Oct 2023. VDC reached $50m ARR by the end of 2024; at the same time Veeam had 21m in non-VDC Microsoft 365 backup users.

VDC reportedly exceeded $250m revenue runrate by the end of 2025, and Veeam disclosed 25m+ protected M365 users in February 2026.

The slowing growth in M365 protected users (~6% YoY in February 2026) suggests that the VDC growth is driven by product migration rather than net new customer acquisition.

As the largest M365 backup vendor, the slow down in Veeam's growth is at least partly driven by the slow down in the M365 paid seats. Microsoft reported 6% YoY growth in paid M365 seats due to high penetration.

We believe that the 6% growth reflects a combination of VDC migration and changes in Veeam's channel model, as well as slower net new customer acquisition. As the VDC transition effects normalize, we would expect Veeam's M365 backup growth to reaccelerate. Over the longer term, given Veeam's high market share, its growth will increasingly converge toward growth in the underlying M365 paid seat base. As the largest M365 backup vendor, Veeam is already relatively penetrated, making M365 seat growth an important underlying driver.

Veeam's number of M365 seats grew 6% in Feb 2026, matching 6% growth in M365 seats reported by Microsoft.

Annualized seat growth	2021	2022	2023	2024	2025	2026
Veeam-protected M365 seats	93%Jul 2021	64%Jan 2022	58%Feb 2023	38%Dec 2023	22%Feb 2025	6%Feb 2026
Microsoft 365 paid seats	15%Mar 2021	16%Mar 2022	11%Mar 2023	8%Mar 2024	7%Mar 2025	6%Mar 2026

Veeam growth is annualized between consecutive protected-user disclosures; Microsoft growth is year over year at each fiscal Q3. Reporting dates differ and are shown under each figure.

AvePoint

AvePoint reported $465m of company ARR at June 30, 2026, up 27% year over year. Its Resilience product suite represented 62% of ARR at December 31, 2025.

Commvault

On June 30, 2026 Commvault reported $424m of SaaS ARR growing at 38% year on year. In an earlier earnings call, management confirmed that M365 and Air Gap Protect continued to account for most of SaaS ARR.

Cohesity

Cohesity said in August 2021 that it backed up more than one million M365 user accounts, with approximately 6 GB protected per user.

In December 2024 Cohesity acquired Veritas’ enterprise data-protection business, and the combined company reported $1.5bn of ARR. Veritas' Alta backup (which is in turn based on HubStor acquisition completed in 2021) was reported to protect over 2m M365 mailboxes and 69.8PB of data.

Cohesity continues to maintain its pre-Veritas DataProtect M365 backup product, as well as Alta SaaS Protection it acquired with Veritas. The company stated $2bn ARR as its medium-term target in Mar 2025, but has not disclosed topline numbers since, despite providing regular updates earlier.

Rubrik

Rubrik reported $1.57bn of subscription ARR at April 30, 2026, up 32%. At June 2026 investor presentation Rubrik disclosed that M365 backup reached $100m ARR in 3.5 years after it was launched in fiscal 2H 2022; it also stated that it had $150m+ in total SaaS backup revenue (excludes Entra ID) and $50m+ in identity resiliency revenue (includes Entra ID and Okta data protection).

A February 2025 public-sector event page mentioned the company protected more than 2m M365 users.

Sophos Backup and Recovery Powered by Rubrik became generally available on June 1, 2026.

Kaseya / Datto

Kaseya owns two M365 backup vendors. First, Backupify (acquired by Datto in 2014; now marketed as Datto SaaS Protection) discloses 4.6m of users protected across its Microsoft 365 and Google Workspace products. Second, Spanning (acquired by Kaseya in 2018) mentions 24,000+ organizations, 2.5m+ users protected. Kaseya public statements also include contradicting statements and stale marketing materials, including a disclosure of just one million protected SaaS users in Aug 2026, at the same time mentioning 3.5m SaaS users on their landing webpage.

Both Spanning and Backupify remain separate economic products. Kaseya also sells Kaseya 365 User, a subscription bundle that includes Spanning/Backupify SaaS backup with email security and other tools.

Datto reported that it generated $120m in combined RMM and SaaS backup TTM sales in Sep 2021, before the merger with Kaseya.

Total Kaseya ARR is $1.5bn as of June 2026, ~flat year on year.

Acronis

Acronis says Cyber Protect Cloud is used by 21,000+ MSPs and 750,000 businesses.

Implied Acronis' ARR is estimated at ~$420m in June 2026, consistent with Cohesity'sanalysis.

Keepit

Keepit used to develop Veritas' SaaS backup solution, which was marketed as Veritas SaaS Backup. In 2022 Veritas business was transferred to Keepit and it started to provide the services directly. In the year ended September 30, 2025 Keepit reported approximately $62m revenue, growing 41% year on year.

The company disclosed 5m protected users and 10,000+ companies in December 2024; by end of June 2026, Keepit materials referred to 25,000+ customers.

Druva

Druva had passed $200m of total ARR and it had 4,000+ customers in August 2023.

In April 2024 it disclosed more than 3m protected M365 users across 5,000+ organizations. In a separate March 2025 publication it said active M365 users had increased 33% over the preceding year and that nearly half of its 7,500 customers used Druva for M365 workloads.

In May 2026 Druva announced that it had 1.49m protected M365 users as part of OEM deal with Dell

Cove / N-able

N-able reported 2.2m M365 users protected by Cove in September 2024, up 46% year over year, while the number of MSPs offering the service was 7,000, compared to 6,000 a year ago.

On Q1 2026 earnings call the company mentioned that the number of protected M365 backup users exceeded 3.5m. N-able also disclosed that its backup ARR exceeded $200m on Q2 2026 investor call.

The company has stayed at roughly 25,000 total MSPs across all products (stable for over 5 years) indicating that the growth in M365 backup usage is driven by increasing M365 penetration (~28% in 2024), rather than new MSPs.

NinjaOne / Dropsuite

In December 2024, Dropsuite had A$49.8m of ARR and 1.65m paid users. Dropsuite also had approximately 5,000 MSP partners at the end of 2024, based on the >4,500 MSPs reported in June 2024, plus 270 new MSPs added in Q3 2024 and 169 added in Q4 2024.

NinjaOne acquired Dropsuite in 2025; by January 2026, NinjaOne’s overall platform had exceeded $500m of ARR.

We estimate that vendors whose individual revenue is not itemized generate an additional ~$600m of ARR, implying a total third-party M365 backup market of approximately $1.9bn, or 122m protected users.

The most significant vendors that are not itemized include ConnectWise, OpenText, and Redstor, which we estimate generate ~$80m of M365 backup ARR combined. The group also includes email security vendors (including Proofpoint and Barracuda), that offer backup as an additional service, as well as a long tail of smaller vendors (e.g. MSP360, HYCU) and regional providers.

Below, we discuss several of the more significant vendors included in Other category.

Connectwise / SkyKick

SkyKick was founded in 2011 as a developer of M365 migration tools. From the outset, it received strong endorsement from Microsoft and secured several large OEM relationships (incl. GoDaddy and Vodafone). The company raised ~$200m between 2011 and 2021.

Despite the strong start, SkyKick failed to scale its business and fell far short of AvePoint, its closest competitor. SkyKick reached only ~$45m of ARR by 2023, when it laid off ~50% of its workforce, and was subsequently acquired by ConnectWise (RMM/MSP vendor). ConnectWise integrated SkyKick’s technology into its portfolio, but killed the SkyKick brand and shut down its website.

OpenText / CloudAlly

Opentext/CloudAlly. CloudAlly used to be one of the early entrants in M365 backup. It launched its SaaS backup service in 2011 and reached $8m in ARR in 2020, when it was acquired by Zix (email-security vendor). In its turn, Zix was later acquired by OpenText (legacy software M&A platform) in 2021.

Aside from CloudAlly backup, OpenText also owns MicroFocus (legacy enterprise backup business spun off from HP) and Carbonite (cloud backup consolidator that combined Seagate legacy backup and EMC's SMB backup business). The resulting combination has ~$300m in backup revenue but very little focus on M365/SaaS workloads remains.

Top-down triangulation

We triangulate our M365 backup market estimates using top-down approach based on the number of paid M365 backup seats reported by Microsoft and estimated percentage of protected M365 users.

Microsoft helpfully reports M365 seats on a quarterly basis, and we use CoreView 2026 State of Microsoft 365 survey (registration required) to estimate what percentage of M365 seats are backed up. The CoreView report is especially helpful because it's a rare survey on the topic that is conducted by a non-backup vendor; it produces an estimate broadly consistent with our observations.

The revenue measure is annualized recurring revenue economically attributable to backup of Exchange Online, OneDrive, SharePoint, Teams and Entra ID. It includes self-managed software and backup-as-a-service products. For bundled platforms, we aim to allocate the portion of contract value attributable to Microsoft 365 backup, and exclude other workloads (endpoints, servers, DBs, Google Workspace and Salesforce) and product types (email security, archiving, e-discovery and compliance).

The revenue represents vendor-recognized gross revenue, rather than the amounts charged by resellers to the end customer. Values are in U.S. dollars.

The analysis covers third-party backup vendors and includes Microsoft’s backup revenue from Microsoft 365 Backup Storage API to the extent it is included in third-party vendors' topline (including Express, Microsoft editions).

There are a number of notable companies that we track closely but exclude from the market share analysis above for reasons we would like to mention here.

Synology

Synology is a ~$1bn-revenue, very profitable storage vendor and a significant Microsoft 365 backup player. Synology's Active Backup solution protects ~15m M365 users (based on 18m+ reported SaaS seats, assuming ~85% are M365 and ~15% are Google Workspace).

If Synology charged separately for software licenses, its scale would put it on par with Veeam. But it does no such thing: Synology M365 backup is bundled for free with its storage appliances, so there is no direct M365 backup revenue stream. Accordingly, Synology is not included in the market share analysis above.

Legacy giants

Historically, Dell(EMC), IBM and HPE were major players in enterprise backup. EMC's NetWorker, Avamar and Data Domain, IBM's Storage Protect and HP's Data Protector were the leading backup products of the 1990s and 2000s.

As the market shifted toward cloud-native and SaaS workloads, the legacy franchises became less relevant. While we estimate that the three legacy vendors still generate more than $2bn of backup revenue combined, their Microsoft 365 backup revenue is not incremental to the M365 market. None of the vendors have their own SaaS backup technology:

• Dell's offering is based on Druva tech,
• IBM Storage Protect for Cloud is based on AvePoint,
• HPE OEMs Keepit SaaS backup.

Revenues from these products are attributed to Druva, AvePoint and Keepit, respectively, and we exclude Dell, IBM and HPE as separate vendors from our Microsoft 365 market-share analysis.

All product names are trademarks or registered trademarks of their respective holders; use of them does not imply any affiliation with or endorsement by them.