High demand for virtualization in China, VMware says

The firm counts government ministries and some of China's biggest companies among its clients

VMware will expand in China as it moves to meet rising demand for desktop and data center virtualization in the country, a company executive said in an interview Wednesday.

VMware is rapidly building a customer base among smaller Chinese firms - those with 1,000 or fewer staff - even as it expands services for bigger clients with mature virtualization systems in place, said Andrew Dutton, VMware's new Asia Pacific head.

VMware's business in China tripled last year. The firm expects to have 350 staff in China by the end of the year, up from about 200 now.

That level of growth could continue for a number of years, Dutton said.

"As we see opportunity present itself, we'll staff up to meet that opportunity," he said.

VMware releases local Chinese versions of its products about two months after their English-language launch. The company counts government ministries and some of China's biggest firms among its customers. High levels of virtualization at clients such as China's statistics bureau and the Agricultural Bank of China have created a need for stronger support staff in China, Dutton said.

"Some of the customers here are so mature, or they're becoming so mature, in the use of IT that they need to be right up at the cutting edge, and to do that they want access to the minds that built the products," he said.

Data center virtualization provided about 90 percent of VMware's revenue in China last year. Less than 10 percent came from desktop virtualization, but the firm hopes to raise that number. It expects revenue from desktop products in the first quarter of this year to match the figure for all of last year.

Large firms including banks and telecommunications operators have been among the fastest to virtualize their servers in China, while high costs and a lack of awareness have made small firms slow to follow suit, said Ravi Shekhar Pandey, an analyst at Springboard Research.

Foreign companies offering virtualization in China could find it difficult to crack software and service sectors dominated by Chinese firms, said Pandey.

"I have a strong feeling that Chinese customers are more comfortable working with Chinese companies," he said.

Still, Microsoft and Virtual Iron rank beside VMware as foreign firms that have made inroads to China's virtualization market.

"VMware has an advantage in the sense that it is recognized in every market as somebody who pioneered this, who made it easy for companies to virtualize their infrastructure," Pandey said.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags ChinaVMwarevirtualisation

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Owen Fletcher

IDG News Service
Show Comments

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?