LSI announces major India plans

LSI has announced significant expansion in LSI India operations over next 36 months. It will also scale engineering capability across a wide range of functional areas, and there will be increased levels of engagement with regional customers and partners.

Making these announcements in Bangalore, Jeff Richardson, executive VP, LSI Corp., said that LSI will be expanding the R&D facility in Bangalore and also double the LSI India workforce. It has opened 300,000 sq feet of new office space with 30,000 sq feet of lab to accommodate approximately 1,400 employees.

LSI India capability growth.

LSI India capability growth.

LSI intends to scale its engineering capability in India. These include enterprise storage — NAS, SAN, systems, software and semiconductors, as well as wireless and wireline infrastructure — software and semiconductors. To improve engagement levels with regional partners and customers, LSI will be adding marketing and customer support capabilities.

The vision for LSI India is to become a global engineering center that fosters innovation and enriches careers. LSI India has experienced an average annual headcount growth rate of over 100 percent per year since 2004, starting from a headcount of 44 in 2004, this has risen to 1,074 in 2010. LSI’s mission is to be the most trusted provider of technologies that connect people and information.

“India is a key component of our long-term strategic vision, with both excellent technical education infrastructure and exceptional talent,” said Richardson. “The world-class R&D capabilities we are deploying in India will allow us to continuously innovate and deliver breakthrough storage and networking technologies that enable our customers to outpace the competition.”

“The Bangalore Development Center will play an important role in adding to our business as well as creating innovative products for the global market,” said Pravin Desale, managing director, LSI India Research & Development Pvt Ltd. and vice president of engineering, Storage Components Division, LSI.

LSI overview
LSI is focused on storage and networking. There has been significant strategic transformation — in terms of nine acquisitions  and two divestitures, as well as elimination of all internal manufacturing. The company has a solid financial foundation — there is $670 million in cash  and short term investments, and it is debt free. LSI has 12,000+ patents and patent applications.

On the revenue composition side, external storage makes up 29 percent, HDD/SSD 26 percent, server and storage connectivity 25 percent, networking 17 percent, and IP 3 percent, respectively.

The revenue per segment in 2009, was as follows — storage systems accounted for $798 million, storage semi $978 million, networking semi $384 million, and IP $58 million, respectively, making up $2.2 billion.

Strategic acquisitions/transactions have helped LSI successfully transform to networking and storage focus. In Q1’09, it acquired AMCC 3Ware. In Q3’09, it acquired OnStor Inc.

According to Richardson, the market drivers include network traffic (in exabytes/month)– 40 percent annual growth from 2008-13, and storage capacity (in terabytes) — 45 percent annual growth from 2008-13.

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