VMware shifts into high gear in Asia

By Zen Lee, ZDNet Asia
Monday, September 20, 2004 05:09 PM
update SINGAPORE--VMware, a maker of software that runs several operating systems on a single machine, has set its sights on achieving a stronger foothold in Asia.

Earlier this year, the EMC subsidiary set up its regional headquarters in Singapore to spearhead its business initiatives in South Asia and Greater China.

Koh Eng Kheng, VMware's regional director for ASEAN and Greater China, told CNETAsia the company also plans to expand its China operations by setting up more offices in the mainland, as well as Hong Kong.

"China is a big market," said Koh. "On its own, China posts 32 percent of all the Asia-Pacific server shipments, so based on that as a guideline, there is potential there."

The firm currently has offices in Sydney overseeing the Australia and New Zealand markets, as well as Tokyo which services Japan.

But China is not the only market on its radar. The company is also gearing its push in India, whose deep business process outsourcing experience and large, low-cost workforce have made it the top location for offshore services, presenting tremendous market opportunities for VMware.

"There are lots of talks about business process outsourcing and they are all centered in India. There is also a lot of software development in India, and the VMware workstation is perfect for software developers," said Koh.

VMware's virtualization software lets a single server run multiple operating systems simultaneously on different "virtual machines", and it is also capable of allowing a computing task to be moved between computer systems. VMware solutions are said to achieve lower costs through server consolidation, by improving utilization rates to 80 percent and 90 percent, up from the current 5 percent and 15 percent.

VMware, which started out as an independent start-up back in 1998, was acquired by storage specialist EMC in January this year. The move was aimed at helping EMC reach further into the world of utility computing, a trend that helps make information technology easier to manage and more efficiently used.


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