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VMWare to invest $100 million in India

Virtualization software company will establish a new Bangalore R&D site and will double its staff based in India.

VMWare plans to spend more than $100 million over the next two years to expand its presence in India, the virtualization software maker said Monday.

The company said it will build a new 82,000-square-foot research and development facility in Bangalore. In addition, the company plans to double its employee headcount in India to more than 1,000 people by 2010.

VMWare, a unit of storage maker EMC, is seen as the leader in the market for virtualization software. But competitors are working to close the gap.

Microsoft last week made available for download a test version of its Hyper-V hypervisor software. The release is near-final code of the virtualization utility that Microsoft is building into its Windows Server 2008 operating system.