by Dries Buytaert
For Acquia, 2012 was a great year. In many ways, it's been our best year.
Last year, we saw more evidence of Drupal continuing to become a growing part of the mainstream. While this trend has been apparent for some time, in 2012 we were being adopted at a faster rate by more and more enterprise businesses and government agencies. Acquia, in many ways, has risen on the tide of this acceptance. Maybe we helped build this momentum. And along the way, as we've grown, we have worked to keep the philosophy of open source as the guiding philosophy of Acquia.
The Open Source Way
The concept of being guided by the philosophy of open source, which I call the Open Source Way, is reflected in Acquia's approach to our products and services. For example, we believe it is important to provide the capability to easily transfer data from one platform or solution to another, and not be shackled to proprietary vendors' platforms. The solutions we offer, whether PaaS or SaaS, allow innovation and agility by following the open source way, eliminating lock-in. We've coined the terms OpenSaaS and OpenPaas to refer to this.
This approach has resonated with enterprise business. This is reflected in our growth metrics for 2012. Our growth was reflected in our sales bookings, which grew at a record rate. We finished the year with 15 consecutive quarters of revenue growth, surpassing even our own aggressive goals.
Acquia grew by more than 160 employees last year, and now totals about 280 staff. In addition to Acquia's base in Burlington (Boston, MA), we have 28 employees in the UK office, 14 in our new Portland office, and 82 working remotely. Success poses many challenges. Hiring so many people is difficult. On one recent Monday, we have about 20 new staff undergoing orientation in our Burlington office. We've met the challenge of hiring, though, and we've assembled a staff of talented, passionate people. They are the reason for Acquia's success.
Our core strength is our ability to accomplish the aggressive goals we set for ourselves. This ability is the result of both the collaboration and the passion the Acquia staff brings to everything we do. Acquia's culture, in which collaboration and passion are key, also reflect the Open Source Way. We bring this passion and collaboration to our customers as well, and we work hard to ensure every customer's success. In 2012, the number of customers renewing with us was up, returning that commitment and loyalty.
Landmarks and trends
As we moved through 2012, we saw the growing acceptance of cloud computing. No longer was it "should we be on the cloud", but businesses asked "how best to move to the cloud". More often, the open, elastic cloud computing offered by Acquia was the answer. Platform as a Service (PaaS) and Software as a Service (SaaS) both continue to gain further acceptance and grow, again providing that ability to react to business needs rapidly, putting a larger portion of resources into building exactly what is needed when it is needed, rather than investing in expensive infrastructure and maintenance. The success of our cloud products means that Acquia will continue to invest and expand in this area in 2013, especially as we saw the trend last year that having many microsites, often one for each product or service, is quickly becoming the rule rather than the exception.
Other landmarks in 2012 were the growing number of health/pharma businesses moving to Drupal and the cloud, joining financial services companies and government agencies also making the move. Until recently, these industries were wary of open source and cloud-based services, fearing that these solutions weren't secure or reliable enough. The reality that the cloud can also be fault-tolerant and highly available, and that security and government compliance requirements can be met with confidence, opened up the cloud to more and more enterprise businesses in 2012. Their move to the cloud in 2012 reinforced the fact that freedom of innovation and agility of open solutions are driving factors for large-scale business as well as smaller organizations.
As the public moves rapidly to mobile platforms of all kinds, including smart phones and tablets, the need to provide a great user experience on these platforms is becoming increasingly important. UX also became important in 2012 as marketing rather than IT became the driving force behind more and more websites. Acquia responded with the creation of our Spark team, which took shape as a five-person team made up of some of the world's best Drupal experts.
Also in 2012, Acquia acquired Mollom, a company I created to address the challenge of managing social spam on websites. With the tremendous growth of user-generated content as part of the social media explosion, unwanted content has become a more important issue to take on. As a SaaS tool, Mollom fits in with Acquia's existing services.
In 2012, Acquia continued to invest in the worldwide Drupal community in a number of important ways. First, we sponsored over 82 Drupal events around the world in 2012. These events brought new people into Drupal and helped existing Drupal users learn new techniques. We employ more than 110 Drupal specialists, most of whom are significant contributors to the larger community. We've sent our Drupalists to more than 30 of these events (as well as hosted sprints ourselves at Acquia) to collaborate with others in the community on important problems for Drupal.
We also grew Acquia's Office of the Chief Technical Officer, or OCTO, in 2012. OCTO includes a dedicated team who work on Drupal full-time, on projects that include:
- Drupal core architecture issues.
- Authoring experience improvements via Spark.
- Spearheading process changes that help the community work better together.
- Forming the Large Scale Drupal program, which helps pool resources of numerous enterprises to provide solutions the benefit the entire community.
This year, like 2012, will be a key year for Acquia as we continue to develop products and services built on the open source philosophy.
Life-cyle management applications will be an increasing focus for Acquia in 2013. These applications will help craft great digital experiences by providing the tools to monitor and optimize digital content.
Of course, we'll continue to nurture and expand our vision of OpenSaaS and OpenPaaS. We'll continue to make the move to PaaS even easier, providing solutions that offer all of the functionality needed, but in a simplified package. We'll accomplish this by combining PaaS, Drupal services and Application Performance Management to produce comprehensive solutions that continue to make Acquia a no brainer when it comes to choosing a PaaS provider. PaaS platforms that embrace an open ecosystem provide faster business value, as many of our customers have discovered. We are working with our growing number of partners to help them build customer solutions on our open cloud platform.
As we start down the road of 2013, we enter the year just having raised $30 million in Series E financing, the single largest financing we have done to date. As we have grown and matured during 2012, these funds will assure sustained growth and success in 2013. No matter how rapidly we grow, or how large the Drupal community becomes, Acquia will put its open source philosophy at the core of all the work it does. In the end, the people of Acquia and the Drupal community, following this philosophy, are building the future of the digital experience. The Open Source way.