VMWare to invest $500 mn in India over next 3 years

Company to invest mainly in capacity, R&D capabilities

VMware, US-headquartered virtualisation and cloud infrastructure solutions provider, today said it would invest $500 million (around Rs 3,017 crore) in India over the next three years, mainly towards creation of new capacity, strengthening research and development (R&D), and in other business operations.

The NYSE-listed company's R&D and support operations in India are second largest in size and scale after its global headquarters in the US. As many as 2,300 of VMware's total 16,000 employees are currently based out of India. The company, which established presence in India in 2005, now has over 3,500 customers in India and over 100 active partners here.

"India continues to play a crucial role in our global product roadmap and growth strategy," said Chief Executive Officer Pat Gelsinger, who is currently on a visit to the country. "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."

In 2013, VMware raised its headcount in India by 17%, and also absorbed some additional staff through the acquisition of AirWatch. Gelsinger said, the company is likely to continue growing its headcount in India faster than its global manpower addition.

During 2013, VMware had announced an investment of $120 million (approximately Rs 650 crore) over multiple years. This investment was mainly towards construction of a new facility that the company is building in Bangalore. The company has leased a facility of about 420,000 square feet, which is currently under construction, in the city. It will consolidate its existing facilities in Bangalore in the new premise once it is ready. The new facility will have a seating capacity of about 2,700 employees and will accommodate the new and ongoing product R&D, as well as the sales and supporting staff.

Gelsinger said, the building is likely to be ready "soon".

"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.