Veritone announced that its aiWARE platform and the Intelligent Digital Evidence Management System (iDEMS) will now run on self‑hosted private AWS or Azure tenants, a move that gives defense, law‑enforcement and other government agencies full control over their infrastructure while still leveraging Veritone’s AI capabilities.
The new deployment model is part of Veritone’s broader strategy to capture a larger share of the public‑sector AI market. The company has set a 100‑150% revenue growth target for 2025 in this segment, and the private‑cloud option removes a key barrier for agencies that must meet strict data‑sovereignty and compliance requirements such as FedRAMP and CJIS. By offering a sovereign deployment, Veritone differentiates itself from competitors that primarily provide public‑cloud solutions.
Veritone’s recent quarterly results underscore the business momentum behind the expansion. In Q3 2025, revenue rose 32.4% to $29.1 million, driven by a 200% year‑over‑year jump in Software Products and Services revenue (excluding Veritone Hire). Managed Services revenue fell 22.3% YoY, reflecting a shift toward higher‑margin software contracts. GAAP gross margin contracted to 63.9% from 68.2% in Q2 2025, largely due to a higher mix of lower‑margin managed‑services work, while non‑GAAP gross margin fell to 68.9% from 73.6%. These figures illustrate the company’s focus on scaling its software‑centric business while managing cost pressures.
CEO and President Ryan Steelberg said the new deployment model “ensures that agencies can maintain complete control over their infrastructure and data without sacrificing the scalability, flexibility, or power of AI.” He added that Veritone’s open‑architecture approach “allows customers to meet their unique security and compliance needs while still benefiting from the platform’s advanced analytics.” The comments highlight the company’s confidence that the private‑cloud offering will unlock new contracts and recurring revenue streams in the public sector.
The announcement aligns with Veritone’s recent divestiture of its media‑agency business in October 2024, which positioned the company as a pure‑play enterprise AI solutions provider. The shift to a software‑and‑services model has already begun to pay off, with software revenue growing faster than the company’s legacy services. The private‑cloud expansion is expected to accelerate that trend by opening a high‑margin, high‑barrier market that is less sensitive to the competitive pricing pressures seen in commercial cloud services.
Overall, the self‑hosted deployment represents a strategic win for Veritone, reinforcing its position as a flexible, secure AI platform that can meet the stringent requirements of government customers while driving higher‑margin growth. The move is likely to strengthen Veritone’s competitive advantage and support its ambitious revenue targets for 2025.
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