VMware to invest $500 million in India over the next 3 years

Written by FE Online | Bangalore | Updated: Apr 17 2014, 04:13am hrs
Continuing with investment commitments in India, VMware, the global player in virtualization and cloud infrastructure, today said it projects investment of up to $500 million here over the next three years to expand its operations.

Last year, company had announced invest of $120 million for setting up facility in Bangalore and other assets. About $75 million has been utilized in construction of large campus building and the facility is expected to get ready by early next year.

The fresh investment of $500 million will be largely made in the areas of capital assets, research and development (R&D) activities related to compute, storage, and network virtualization along cloud and mobile device management and business support functions in India, Pat Gelsinger, CEO, Vmware told reporters in Bangalore.

The companys R&D and support operations in India are second in size and scale only to those at VMwares headquarters in Palo Alto, U.S. In 2013, company headcount in India grew 17 percent to 2,300, while the recent acquisition of AirWatch has added some 250 employees in Bangalore, taking the total staff strength to around 2500 in India.

India continues to play a crucial role in our global product roadmap and growth strategy. The countrys outstanding engineering talent continues to impress us, and we stay committed to investing and growing our team here over the long term, said Gelsinger.

He added, The investments earmarked will also enable VMware to further strengthen its leadership position in Indias fast maturing virtualization and cloud computing market.

A VMware-sponsored study on server virtualization in Asia Pacific the IDC Server Economies Index estimated that server virtualization will save businesses in India approximately US$3.89 billion by 2020. This figure reflects the costs normally associated with servers, power, cooling, real estate and server administration.

According to Gelsinger, storage virtualization, mobile management and hybrid cloud will offer a $50 billion market opportunity globally during 2015-16. However, he pointed that Indian market still lags in server virtualization in comparison to global markets.

On acquisition, Gelsinger said the company is looking for tuck in acquisitions for business acceleration and growth.

VMware established a presence in India in 2005, and today serves nearly 3,500 customers and works with approximately 100 partners. Over the last nine years, VMwares sales operations have expanded across India. VMware occupies premises in Bangalore, Pune, Ahmedabad, Kolkata, Hyderabad and Chennai, as well as Mumbai and New Delhi.

Globally, VMware reported a record $5.21 billion in revenues for full-year 2013, representing year-on-year growth of 13 percent.