Indian Businesses Turn to IT to Fuel Growth

Cloud strategies driven by a software-defined approach to significantly impact organizations in the coming year, according to the 4th Annual VMware Cloud Index

MUMBAI, October 29, 2013 — VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced the findings of its 4th annual VMware Cloud Index, a study that was conducted by Forrester Research across 12 Asia Pacific countries. The study reveals that nearly 9 of every 10 (89 percent) respondents in India believe that Cloud Computing, or ‘as-a-service’ approach, is relevant to their organization and nearly 8 of every 10 (79 percent) respondents in India say they currently have a cloud-related initiative in place within the organization, or are planning to implement cloud, or ‘as-a-service’ approach, in the next 12 months.

An interesting trend according to the VMware Cloud Index 2013 is that Indian organizations are turning to IT to help them grow the business in the current economic environment. IT is seen as a change enabler and source of business value for organizations by 85 percent of the respondents.

In terms of the top business priorities in India over the next 12 months, 87 percent of IT decision makers said improving the quality and capabilities of their products and 85 percent said addressing the rising expectations of customers and improving customer satisfaction.

The study also shows that the current perception of IT remains positive in India with 63 percent of respondents noting that the perceived credibility, influence and power of the CIO in their organization is increasing.

“Business priorities are clearly shifting at a time when optimism is slowly returning to the Indian economy. Business leaders recognize and expect IT to deliver much more ROI; they want the agility and flexibility to adapt to the dynamics of the marketplace while continuing to lower operating costs,” said T Srinivasan, managing director, VMware India and SAARC at the launch of the study in Mumbai.

“Our customers have been on a journey towards IT–as-a-Service and VMware has been at the forefront of assisting companies through the phases of IT transformation to realize the business benefits of virtualization in the mobile cloud era in India. We remain committed to evolving the software-defined data center architecture to address IT’s critical needs - enabling businesses to build infrastructure that is radically simpler and more efficient,” he added.

The Software Defined And Mobile Cloud Era In India
In terms of priorities for IT over the next 12 months, improving IT agility & responsiveness to business demands was high at 82 percent and operational efficiency was noted by 80 percent of respondents. Additionally, server consolidation via virtualization continues to be a strong priority at 77 percent.

Respondents in India are also aware of and are planning around new and evolutionary priorities. A software-defined approach to implementing and managing datacenter resources (servers, storage, networks) was stated by 71 percent of respondents. Furthermore, mobility & consumerization of IT was also noted by 71 percent as expected to create a lasting impact for organizations over the next 2-3 years.

Fast provisioning and zero downtime from networks (80 percent) and storage (81 percent) have been identified as key areas for IT to address over the next 12 months in the study. 68 percent believe if their company doesn’t improve the way they deliver or ‘provision’ these services to the business, they risk falling behind competitors. Nearly half of the respondents also view internal resistance to change hindering cloud or ‘as-a-service’ adoption within their organization.

Consumerization of IT gains acceptance across Indian businesses
While 71 percent of IT decision makers are concerned about end users accessing corporate systems and applications from mobile devices, 73 percent believe that their IT organization are able to keep up with the end user computing needs of their employees. In fact, 65 percent claim to already have a formal strategy in place for supporting end user computing clearly showing that Indian businesses are acting to cater to the needs of the new age worker.

“Continued investment and innovation in end-user computing by companies like VMware, are helping IT organizations free the desktop, redefine the corporate workspace and embrace a new way of working in the mobile cloud era,” said Srinivasan.

At its 10 th annual VMworld® conference in San Francisco and Barcelona, VMware announced a wave of new products and services designed to help IT accelerate their adoption of a software-defined data center architecture and take advantage of the value of advanced virtualization in areas such as networking and security, storage and availability, and management and automation. These include VMware NSX™, VMware Virtual SAN™, VMware vCloud® Suite 5.5, VMware vSphere® with Operations Management 5.5, VMware Management Solutions, and the vCloud® Hybrid Service™.

About the VMware Cloud Index
The VMware Cloud Index 2013 is an Asia Pacific-wide study conducted by Forrester Research. Now in its 4 th edition, the 2013 study surveyed approximately 2,785 senior management and IT leaders across the Asia Pacific region in twelve countries (Australia, China, India, Malaysia, Singapore, Thailand, Korea, Indonesia, Hong Kong, Philippines, Taiwan and Vietnam). The survey was conducted in July 2013.

About VMware
VMware 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 2012 revenues of $4.61 billion, VMware has more than 500,000 customers and 55,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com/in.

VMware, VMware Virtual SAN, vCloud, vCloud Hybrid Service, vSphere, vSphere with Operations Management, NSX, and VMworld are registered trademarks or trademarks of VMware, Inc. in the United States and other jurisdictions. The use of the word “partner” or “partnership” does not imply a legal partnership relationship between VMware and any other company.

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding the expected demand for and adoption of cloud computing and "as-a-service" approaches in the Asia Pacific region and in India, their potential benefits to customers and the role of VMware solutions in addressing future customer needs and requirements. 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 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; (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; and (x) VMware’s ability to attract and retain highly qualified employees. 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.

Contacts:

Vivaan Gideon
VMware
vgideon@vmware.com
+91 9972291924
Sumana Bhat
Edelman India (for VMware)
sumana.bhat@edelman.com
+91 9902980980

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