Real Leader in Vir­tual World

VMware is the undis­puted vir­tu­al­iza­tion leader in In­dia, but it is now start­ing to gain footholds in the cloud and en­ter­prise mo­bil­ity mar­kets

DQ Channels - - Cover Story -

Most in­dus­try an­a­lysts re­gard it as the fa­ther of vir­tu­al­iza­tion. CIOs of large or­ga­ni­za­tions in In­dia like HDFC Bank, TCS, Delhi In­ter­na­tional Air­port, NDTV, Dr Reddy’s Lab­o­ra­to­ries, Shop­pers Stop and Hin­dusthan Petroluem amongst oth­ers strongly en­dorse the sen­ti­ment. They are also joined by all the For­tune 100 (lit­er­ally) com­pa­nies and 99% of the For­tune 500 and For­tune 1000 com­pa­nies. In to­day’s new world of IT, many re­gard it is an emerg­ing leader in cloud in­fra­struc­ture and busi­ness mo­bil­ity. It has more than 500,000 cus­tomers and 75,000 part­ners glob­ally. It also has over 93,000 cer­ti­fied pro­fes­sion­als. Founded in 1998, to­day it em­ploys over 17,000 em­ploy­ees across more than 50 of­fices world­wide. Not sur­pris­ingly there­fore the Palo Alto-head­quar­tered VMware with its 2014 rev­enues of $6.04 bil­lion (growth of 16%), is now the fourth largest soft­ware com­pany in the world be­hind Mi­crosoft, Or­a­cle and SAP.

THE IN­DIA IN­VEST­MENTS

In­dia too has been a sig­nif­i­cant con­trib­u­tor to the over­all VMware story. The jour­ney be­gan here in 2005 and in th­ese last nine years of­fices have been opened in New Delhi, Mumbai, Ban­ga­lore, Chen­nai, Kolkata, Pune, Hy­der­abad and Ahmed­abad, with R&D cen­ters in Ban­ga­lore and Pune. The first sig­nif­i­cant in­vest­ment hap­pened in 2008 to the tune of $100mn. In April 2014, VMware an­nounced a pro­jected in­vest­ment of up to $500 mil­lion in In­dia over the next three years to help fund its grow­ing op­er­a­tions in the mar­ket.

At the same time, VMware an­nounced an in­vest­ment of $120 mil­lion to build a cam­pus in Ban­ga­lore. Ex­ist­ing fa­cil­i­ties in Ban­ga­lore were con­sol­i­dated into the new state-of-the-art premise, which cov­ers 428,000 square feet of workspace and seats 2,700 em­ploy­ees. The cam­pus, in­au­gu­rated re­cently by VMware CEO Pat Gelsinger, ac­com­mo­dates new and on-go­ing prod­uct R&D, as well as a large staff con­tin­gent sup­port­ing VMware’s global op­er­a­tions and In­dia’s sales teams. Af­ter all, VMware In­dia to­day em­ploys 3,300 peo­ple—there was a spurt in head­count in 2013 when the ac­qui­si­tion of Air­watch added peo­ple in Ban­ga­lore.

VIR­TU­AL­IZA­TION STILL RULES

In the last few years, VMware has emerged as one of the big­gest soft­ware ven­dors in In­dia. Ac­cord­ing to DQ Chan­nels es­ti­mates, the com­pany clocked ` 731 crore ($119.8mn) in rev­enue last year, up from ` 576 crore ($94.4mn) and ` 501 crore ($82.2mn) the years be­fore.

The lion’s share of the In­dia rev­enues still comes from vir­tu­al­iza­tion so­lu­tions. While it has been evan­ge­liz­ing its cloud game­play now for some time, VMware is still pre­dom­i­nantly per­ceived in In­dia to be a vir­tu­al­iza­tion com­pany (proved by rev­enue num­bers) , and not the kind of cloud ser­vices provider typ­i­cally as­so­ci­ated with the likes of Mi­crosoft, Ama­zon Web Ser­vices (AWS), and Google.

VMware se­nior of­fi­cials ac­knowl­edge that the bulk of the com­pany’s rev­enue to­day still come from its tra­di­tional vir­tu­al­iza­tion com­pute busi­ness, but noted that the com­pany has been com­mu­ni­cat­ing its growth in new busi­ness ar­eas com­pris­ing net­work­ing, stor­age, man­age­ment, and end-user com­put­ing. As a re­sult, they claim that VMware is slowly chang­ing the per­cep­tion among cus­tomers as it played out its one cloud, any ap­pli­ca­tion, any de­vice vi­sion, and demon­strated its broader prod­uct port­fo­lio.

While an­a­lysts more or less agree with this claim, they be­lieve that

Pet Gelsinger, CEO, VMware, inau­gu­rat­ing the new Ben­galuru fa­cil­ity

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