American software juggernaut VMware has established a research and development program in China. The company said it plans to invest US$1 billion in local innovation over the next five years.

Known as VMware Labs Asia, the new “framework of strategic collaboration” will focus on developers, partners and academic applications, among other things.

Its first project is a virtual desktop solution for Linux – VMware believes it can address what it calls a unique market opportunity for open technologies in China.

Looking east
Contrary to what the name suggests, VMware Labs Asia is not a brick-and-mortar facility, but a collection of inter-related projects that shouldn’t be confused with the company’s R&D Center in Beijing, established back in 2007.

The framework will operate under VMware's Asia Pacific and Japan organization and be led by Dr. Ying Li, previously responsible for EMC China's Center of Excellence. He will work in close collaboration with the global office of the VMware CTO as well as the regional sales and R&D leadership.

"China is an innovation epicenter that presents VMware with a unique opportunity to participate in an expanded and more diverse joint solution development cycle under the VMware Labs Asia framework," said Sanjay Mirchandani, SVP and GM for Asia Pacific and Japan at VMware.

"VMware Labs Asia will embrace new innovation models together with ecosystem partners with the aim of delivering breakthrough innovation initially in China and beyond," he added.

The Labs’ first project is a VDI software package for Linux.

Chinese government has recently banned installation of Windows 8 on any new government computers, citing security concerns and lack of official support for older versions of the OS. At the same time, the country offers plenty of domestic alternatives based on the Linux kernel, including Ubuntu Kylin, StartOS and the state-sponsored China OS which was launched earlier this year.

VMware says it has noted growing popularity of Linux desktops among enterprise users, and wants to offer a more secure means of managing Linux-based virtual workspaces. The software will also allow users to securely access their desktops from mobile devices when outside the office.

According to IDC, China will continue to be one of the world's fastest-growing cloud markets, with an estimated 2014-2017 growth rate of 25 percent.

"The IT industry has become a key pillar of growth for China's economic success,” commented Yang Fuqing, professor at Peking University and member of the Chinese Academy of Sciences.

“Industry growth, talent development and training are critical to the industry's further development and it's a promising sign that VMware is expanding its partner approach to jointly develop new models and opportunities together with China's academic and research community at the university.”