Channel Revamp Drives 12% Recurring Revenue Growth

Industry Context

Enterprise data management was at an inflection point. As cloud adoption accelerated, customers consolidated vendors and shifted toward enterprise-grade solutions. Legacy models focused on mid-market maintenance streams were no longer enough. Companies that failed to evolve risked margin erosion, customer churn, and declining enterprise value. 

2025 Update: In 2024, Veritas Technologies’ data protection business (including NetBackup) was acquired by Cohesity, with SBI providing advisory support during the transaction. The remaining Veritas products, such as Backup Exec, InfoScale, and the company’s compliance and governance solutions, were spun off into a new independent company, Arctera.

The Challenge

Veritas had a proud legacy in data management but was facing serious headwinds:

• Six consecutive quarters of missed bookings goals
• Channel partners scattered globally, with little loyalty or incentive to sell
• Product strategy skewed toward mid-market instead of higher-value enterprise accounts

Revenue continued to decline, leaving investors questioning the company’s growth narrative. 

The Aha! Insight

When SBI dug in, the breakthrough wasn’t just cost or headcount. The real issue was channel dependency: Veritas was leaning on partners who were living off maintenance streams and not incentivized to drive new business. This structural flaw explained the persistent revenue decline — and became the lever for transformation.

SBI's Approach

SBI partnered with Veritas on four coordinated workstreams:

1. Cost Takeout: Identified $350M in total cost savings (with $50M reserved for reinvestment in growth initiatives).
2. Channel Revamp: Segmented partners, removed low-value players, and introduced a centralized deal desk to accelerate enterprise transactions.
3. Revenue Retention: Stabilized renewals, lifting maintenance revenue from 78% → 88%.
4. Marketing Reset: Rebuilt the marketing organization, hired a new CMO, and launched revenue marketing programs focused on cross-sell, upsell, and enterprise upgrade campaigns. 
   
   

Before vs. After Snapshot

Results

• $350M cost takeout identified
• $20M GTM cost savings realized immediately
• 12% increase in recurring revenue
• Maintenance renewals lifted by 10 points 

"We were trapped in a cycle of declining renewals and stagnant partner sales. SBI gave us the discipline to reframe our channel model and reignite growth"

Risk of Inaction

Had Veritas continued with its legacy channel strategy, recurring revenue would have continued to erode and enterprise relevance would have declined — leaving the firm vulnerable to aggressive competitors and further investor skepticism. 

Industry Implication

Many legacy tech companies face the same mid-market trap. As enterprise buyers consolidate, growth requires a leaner partner ecosystem, enterprise-focused marketing, and centralized execution discipline. Veritas proved that shifting focus from maintenance streams to enterprise ARR is not only possible — it’s essential. 

Persona Lens Impact

• CEO: Stabilized growth trajectory and restored investor confidence
• CFO: $350M in cost savings, improved recurring revenue predictability 
• CRO: Channel rationalization improved win rates and deal velocity 
• CMO: New marketing engine positioned Veritas as enterprise-first 

For enterprise tech leaders navigating channel dependence and stalled growth, SBI’s Revenue Growth Office + Channel Optimization model offers a proven path to regain momentum and protect enterprise value.