Hyderabad: Inmage Systems Inc, a data continuity and disaster recovery solutions provider, is establishing an India development centre in Hyderabad and has earmarked an initial investment of $2 million (about Rs 9 crore) to set up the centre.

Kumar Malavalli, co-founder and CEO, InMage Inc, addressing newspersons said, "We have earmarked an investment of $2 million in the development centre, to be increased further depending on how the market takes off," he said.

He said the Hyderabad centre of the company would function as a full life cycle service provider, right from product design, development, quality testing and roll out to even global support cum services.

Venture capitalists Hummer Winbold, and Malavalli have invested $7.3 million in InMage so far and Malavali said the company is considering the option of going through a second round of funding this August and September to expand operations in India and abroad.

Malavalli, who is the co-founder and former CTO of Brocade Communications still has an advisory position and a stake in communications firm.

According to Malavali, the Hyderabad office of ImMage has 20 people at present and the company would take in another 20 people by the end of 2005. The company has another development centre in the US employing 20 people.

Malavalli said the Indian operations would not be under the US operations, and would be jointly responsible for developing existing and future products.

According to Satish, who heads the India development center, the Indian market for disaster According to Satish, who heads the India development center, the Indian market for disaster recovery software is estimated at half a billion dollars which are estimates based on the extrapolation of IDC's estimates of the global market size ($6-7 billion by 2007).

recovery software is estimated at half a billion dollars which are estimates based on the extrapolation of IDC's estimates of the global market size ($6-7 billion by 2007).