VMware to invest up to $500 mn in India

17 Apr 2014

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NYSE-listed VMware, a company into virtualisation and cloud infrastructure, will invest up to $500 million in India over the next three years to help fund its expand plans and operations.

The company's R&D and support operations in India are second in size and scale only to those at VMware's headquarters in Palo Alto, California. In 2013, the company expanded its staff trength in India by 17 per cent, taking it to 2,300.

VMWare,  which completed its acquisition of enterprise mobility management  and security solutions firm AirWatch in February this year, enabled the company to expand its portfolio in India.

The acquisition has expanded VMware's end-user computing group and AirWatch's offerings will  form an expanded portfolio of mobile solutions that are complementary to VMware's portfolio.

Originally announced on 22 January, VMware acquired AirWatch for approximately $1.181 billion in cash and approximately $364 million in installment payments and assumed unvested equity.

''India continues to play a crucial role in our global product roadmap and growth strategy. The country's outstanding engineering talent continues to impress us, and we stay committed to investing and growing our team here over the long term," its Chief Executive Officer Pat Gelsinger, who is on a visit to India, said.

''The investments earmarked will also enable VMware to further strengthen its leadership position in India's fast maturing virtualisation and cloud computing market," Gelsinger said.

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

VMware established a presence in India in 2005, and today has nearly 3,500 customers. Over the last nine years, VMware's sales operations have expanded across India. VMware has a presence 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 per cent.

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