Technology major Oracle is looking at the possibility of setting up a data centre in India to cater to the regional demand for cloud computing.

Asia Pacific is one of its biggest regions and it is looking to set up a local data centre in the near future.

“We have one data centre in Australia and another one coming up in Singapore very soon. We would like to invest more in APAC, but we need to take some schedule on that. All the big countries like India, are an option for us, but we need to time it right to get with our investment plan. But, certainly that (India) is always on our radar,” Steve Au Yeung, Managing Director and Executive Vice-President, APAC Division – Oracle, told Business Line at the Oracle Open World conference held here.

He added that India is an important centre for Oracle with around 30,000 employees (out of the total 40,000 people in the APAC region). India has the maximum number of employees after the US.

“The majority of the 30,000 people are in research and development team. After India, the maximum number is in China with around 5,000 people,” he said.

More expansions will happen in terms of people as well as data centres in the APAC region in the near future, Yeung said.

India is also among the three countries in the region that has R&D centres, along with China and Singapore. It has six R&D centres in these three countries.

Key R&D centre

Yeung said the Indian R&D centre is more important as it serves at a global level compared with other centres in APAC. “India has been our major source of development. In APAC, we do have some more R&D centres based in China and Singapore, but those are more of our APAC-specific requirements,” he said.

India on its own offers a big potential for Oracle due to the high mobile population. Without giving country-specific numbers, Yeung said the APAC region contributes 17 per cent to the total revenue of Oracle globally and is growing in double digits. It invests 12 per cent of the total revenue in R&D every year.

According to its President Mark Hurd, China and India are its growth markets in Asia.

“In both countries, we have had a lot of growth in our sales force and most importantly we have development organisations in these countries. In India, we added thousands of jobs last year and it also houses one of our largest development teams outside the US,” he said.

Oracle had invested $4.5 billion on R & D last year (fiscal 2012) and this year it plans to invest $ 5 billion globally. The company generated a revenue of $ 37.1 billion in fiscal year 2012.

(The reporter is in San Francisco at the invitation of Oracle.)

(This article was published on October 5, 2012)
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