VMware Projects Investing up to $500 million in India Operations Over the Next Three Years
INDIA, Bangalore – April 16, 2014 – VMware (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced that it projects investment of up to $500 million in India over the next three years to help fund its growing operations in this market.
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, Calif., U.S. In 2013, company headcount in India grew 17 percent to 2,300, while the recent acquisition of AirWatch has added additional employees in Bangalore.
During a visit to Bangalore, CEO Pat Gelsinger said, “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.”
Gelsinger added, “The investments earmarked will also enable VMware to further strengthen its leadership position in India’s fast maturing virtualization and cloud computing market.”
A VMware-sponsored study on server virtualization in Asia Pacific – the IDC Server Economies Index 1– 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.
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, VMware’s 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.
VMware (NYSE: VMW) is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2013 revenues of $5.21 billion, VMware has more than 500,000 customers and 75,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.
This press release contains forward-looking statements including, among other things, statements regarding expected levels of investment and future growth by VMware in India and future demand for VMware products in India.. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to (i) changes to priorities and levels of government spending; (ii) adverse changes in general economic or market conditions; (iii) delays or reductions in information technology spending; (iv) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization, end user and cloud computing markets, and new product and marketing initiatives by our competitors; (v) our customers’ ability to develop, and to transition to, new products and computing strategies such as cloud computing and desktop virtualization; (vi) the uncertainty of customer acceptance of emerging technology; (vii) rapid technological and market changes in virtualization software and platforms for cloud and desktop computing; (viii) changes to product development timelines; (ix) VMware’s ability to protect its proprietary technology; (x) geopolitical stability in South Asia; (xi) legal, regulatory and political developments in India; and (xi) VMware’s ability to attract and retain highly qualified employees in India and elsewhere. These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.
1Vision 2020: Virtualization's Potential US$98 Billion Impact (August 2013, IDC#AP77008W)