EMC said it would invest $500m in China during the next five years, and plans to open a software development center in Shanghai in July.
According to the company, this would represent more than a doubling of the company’s current investment in China, where it already has training centers and a network of integrators. EMC also has made donations to universities there.
During the company’s annual analyst conference, EMC CEO Joe Tucci said that as well lowering its development costs, investing overseas may increase – or at least protect the company’s sales in certain markets.
He said that during a recent meeting a Chinese government minister had warned him: You cannot just come in and sell your products, you have to have a presence, you have to be employing Chinese people, doing more than just direct sales.
EMC’s Shanghai development center will employ more than 100 developers by year’s end, growing to 500 by the end of 2008, the company said. Other countries outside of the US where EMC has established development facilities are Belgium, France, India and Israel.