DELL TECHNOLOGIES

For the second time in a year, Austin-based tech firm Spanning Cloud Apps has a new owner

Posted April 20th, 2017

An Austin company that was acquired by Dell Technologies as part of the acquisition with EMC Corp. has a new owner.

Spanning Cloud Apps has been acquired by Insight Venture Partners, a private equity and venture capital firm, for an undisclosed sum. 

EMC Corp. had purchased Spanning in 2014. The company then became part of Dell EMC after the transaction closed in September. 

Spanning is a seven-year-old company that provides data backup and recovery for cloud applications. The company says it employs about 60 people, with the bulk of its workforce in Austin.

Current employees are expected to remain with the company.

In addition to providing data backup and recovery for Office 365, Spanning also provides data protection for Google apps and Salesforce products. 

In a written statement, Spanning said that Dell EMC will remain a “strategic partner and continue to sell Spanning Backup around the world.”

Ralph Barrera/AMERICAN-STATESMAN Jeff Erramouspe will become CEO of Spanning Cloud Apps after the company was acquired by Insight Venture Partners.

Spanning Cloud Apps will become an independent company operating under the Spanning brand. 

“We see an incredible opportunity to bring our solution for (software-as-a-service) data backup and recovery to organizations around the world,” said Jeff Erramouspe, who was vice president and general manager of Spanning but will now return to his role as CEO, a title he previously held.

During a phone interview, Erramouspe explained that being part of Dell EMC helped them gain access to large enterprise customers, such as Adidas. But the company is now also targeting small-and-medium-sized business accounts, he said, which are largely running their IT operations off the cloud.

Those types of customers tend to buy over the phone, and it’s a different “high-velocity,” sales model that will require a bigger sales team. Insight will help them with this effort, Erramouspe said.

Spanning said that it has achieved year-over-year revenue growth of 70 percent and has a “growing roster” of more than 7,000 customers that use its data backup and recovery software.

According to Spanning's website, some of the company's customers include Austin-based jewelry company Kendra Scott, shoe company Birkenstock and fitness tracker Jawbone. 

The company said its growth is driven by global data center expansions in Europe and Australia, an increased percentage of large enterprise deals and distribution agreements with major partners.

Insight vice president Philip Vorobeychik said there is a greater awareness among companies that they are responsible for recovery of data lost due to user error or malicious activity. 

“We believe Spanning has all the ingredients for continued success and market leadership – a great team devoted to customer success, innovative products, committed customers and a strong global presence,” Vorobeychik said in a written statement. 

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