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Enterprise data replication (EDR), the process of copying or moving enterprise data from one storage system to another, has become centrally important as more businesses adopt digital tools during the pandemic. Even pre-pandemic, organizations were turning to data replication services as their databases expanded in size and complexity. A 2018 Unisphere Research survey found that 83% of companies employ data replication for disaster recovery and offloading non-critical workloads. IDC estimates that the market for data replication and protection software in 2019 was worth $9.4 billion.

Highlighting the demand for EDR, Fivetran recently acquired data replication platform HVR. Meanwhile, companies like Clumio and OwnBackup have secured tens of millions of dollars for their enterprise data backup and restoration services. Arcion (formerly Blitzz), too, claims to be gaining traction in the space with its platform that links cloud and on-premises databases via data pipelines. Arcion today announced that it closed a $13 million series A round led by Bessemer Venture Partners with participation from Databricks, bringing its total capital raised to over $18.2 million at a $65 million valuation.

Data pipelines

Founded in 2016 by Miryana Joksovic and Rajkumar Sen, Arcion provides tools that allow customers to migrate, replicate, and perform analysis on platforms like Databricks and Snowflake. Arcion can replicate production databases in real time between platforms, ensuring consistency between data stores and mapping schema and data between database environments.

Joksovic — the former CEO — is a former research analyst at Frost & Sullivan. CTO Sen was previously a principal member of the server technologies team at Oracle and served as director of engineering at database startup MemSQL and a software architect at Striim.

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According to Gary Hagmueller, Arcion’s newly-appointed CEO, Arcion allows companies to tune access controls, extraction, and ingestion parameters on the fly. The platform can scale across machines and deal with up to “terabytes” of data, offering prebuilt data sources for popular databases and cloud data warehouses — many of which don’t require setup. (Data warehouses are a type of data management system designed to support business intelligence activities, especially analytics.)

“Arcion is a huge time-saver for the people working the IT stack. For instance, data engineers get high-performance, real-time data pipelines that they can deploy in seconds,” Hagmueller told VentureBeat via email “Moreover, Arcion’s change data capture technology only sends the changes, so adopters will see a material decrease in cloud bills when compared to the batch-based solutions widely adopted today … There’s also a ton of automation in Arcion, from schema conversion to monitoring to infrastructure scaling, that reduces human intervention, saves time, and increases overall productivity across the organization.”

Arcion claims to have over 100 deployments across three continents and a customer base that includes “multinational top financial institutions” and “well-known” Fortune 500 brands. The company currently moves 150 terabytes of transactional data every month.

“We’ve managed to amass an annual recurring revenue base of well over seven figures,” Hagmueller said. “In other words, we’ve only barely entered the market and are already doing better than just about any other vendor in the space. Last month, we kicked off a sales process, and next month, we will launch our cloud service.”

Growing data opportunity

While data replication services like Arcion offer many advantages, they also have their downsides. For example, data replication can become expensive when the replicas at all different sites need to be updated — and grow. Maintaining consistency across backups can also add traffic to a network, potentially affecting performance and cost.

Data backup, like any software, also isn’t immune to error (e.g., human error). TechTarget’s Enterprise Strategy Group reports that the top cause of software-as-a-service (SaaS) application data loss is deletion — either accidental, external and malicious, or internal and malicious. And according to a 2021 Veaam survey, 58% of data recoveries fail, and over 70% of companies responding said that they have an “availability gap” between how fast they can recover applications and how fast they need to recover them.

“There are two main reasons for the lack of backup and restore success: Backups are ending with errors or are overrunning the allocated backup window, and secondly, restorations are failing to deliver their required service-level agreements,” Veaam CEO Danny Allan said in a statement. “Simply put, if a backup fails, the data remains unprotected, which is a huge concern for businesses given that the impacts of data loss and unplanned downtime span from customer backlash to reduced corporate share prices.”

Hagmueller asserts that 25-employee Arcion has tools in place to prevent common errors and ensure successful replication.

“From remote accessibility to resilience and scalability, more and more enterprises and their users are driving things to the cloud than ever,” Hagmueller added. “For Arcion, this means there is now a significant increase in the demand for connecting existing databases to cloud platforms, which so far has been a key deficiency in the modern data infrastructure … We’ve been talking about the information age for over 20 years now, and during this time, everyone has been focused on optimizing a particular silo of data. It was the internet at first, then corporate databases, and now the cloud. The good news is that as an industry, we’ve largely nailed the ubiquity of consumption. It also means that we’re now entering the point where the silos must dissolve.”

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