Solving the wrong problem!
This acquisition is flawed at so many levels. Here's why:
1. Commvault does not have a TAM problem - the Backup and Recovery TAM is roughly $12B depending on who you talk to. New comers like Rubrik and Cohesity have latched on to this TAM and are growing like weeds. Veeam has recently crossed $1B in booking in the same space while Commvault has struggled to grow its topline revenue and market share (sitting at 7% for years) despite a product that is far more capable than it's competition. Commvault leadership is calling this a way to inject growth back into the company. When you are not executing well on your existing TAM, how does TAM expansion help inject growth?
2. GTM execution leaves a lot to be desired - Commvault brand awareness and marketing spend is a joke as compared to it's competition. Additionally, they haven't been able to attract A players in sales and their Channel presence is non-existent.
3. Selling storage requires the field to know storage - the Commvault field is selling backup and recovery software (and barely keeping the boat afloat) and expecting them to go sell storage is going to be a tall ask.
4. Spending $225M on a company that has 20 customers and at best $10M in bookings makes it obvious that either Commvault has no experience in M&A and/or the Hedvig board/leadership really knows how to sell themselves.
In the end, this acquisition is mostly just going to end up being a distraction from the core problem at hand, which is, GTM execution. The company should have instead spent the money on marketing/brand awareness, activating the channel, and hiring top talent that can sell their product. Unlikely that the $225M spent on this M&A will ever see the ROI.