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
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