US-based Xiotech Corporation, an intelligent storage element (ISE) company that provides storage blades, is expanding its India operations and is planning to increase investment in its Hyderabad facility.
“We have made an initial investment of $20 million including an investment of about $10 million in equipment. Now, the annual spend on the Hyderabad centre is likely to increase by 20 per cent,” Xiotech president and chief executive officer, Alan Atkinson, told mediapersons here on Wednesday.
According to Atkinson, the company's engineering centre has a workforce of 100 persons and caters to the growing South Asian enterprise market. The centre will also play a key role in development of ISE innovations, particularly in enabling virtualisation and cloud services for emerging markets.
He said Xiotech's growth plans in India include establishing a strong channel and systems integration network. The target markets were information technology services, banking and financial services and telecom. The target cities were Delhi, Mumbai, Bangalore and Chennai besides Hyderabad.
According to Xiotech’s estimates, the market size for ISE storage blades in India is about $275 million. The company is hopeful of cornering 10 per cent of this market two years down the line. With more than 1,200 customers across major industries, the company’s global revenues last year stood at $70 million.
Xiotech chief operating officer, George Symons, said the company was outsourcing manufacturing of storage blades and thus would be able to scale up the capacity in accordance with the rise in demand.
Xiotech is looking forward to building partnerships with some of the leading systems integrators who have competence in architecting and providing virtualisation solutions. Talks in this regard are in an advanced stage. “Right now, we are doing the paper work,” country channel manager P Narasimha Rao said.
