VMware plans Irish expansion

19-02-2007

by Maxim Kelly

Virtualisation software firm VMware is reported to be planning a major expansion in Ireland.

Media reports suggest VMware will create 300 jobs at its European headquarters in Ballincollig, Co Cork. The US firm, which is a subsidiary of global information storage giant EMC, is reported to be involved in talks with IDA Ireland and will announce details of the development project in March.

EMC bought VMware for USD635 million three years ago, and recently announced plans to float 10 percent of the firm later this year. EMC has acquired 21 companies over the last three years and said it would cull 1,250 staff in 2007 as part of a rationalisation of its empire. VMware has been a strong performer for EMC, and the virtual infrastructure provider seems to be immune from its parent company's staff review.

Last year VMware recorded revenues of nearly EUR540 million. The nine-year-old company claims 20,000 corporate customers, including 99 of the Fortune 100 firms.

The VMware announcement comes at a bad time for Cork where around 1,000 jobs are currently under threat with closures announced by major employers in the technology, pharmaceutical and food sectors.

Around 350 staff at Motorola's facility in Cork face an uncertain future, and electronics firm FCI is making 240 people redundant at its plant in Fermoy, Co Cork.

EMC employs 1,500 people across Ireland. As well as the VMware operation, its facility in Cork includes a manufacturing facility, an international executive briefing centre, EMC's Global Solutions Centre, Worldwide Customer Service Centre, software development and shared services functions.