Zoho founder Sridhar Vembu says long-term focus, not cost, drives R&D success in tech teams

Zoho’s founder and CEO, Sridhar Vembu, has once again sparked an important debate in India’s tech ecosystem. This time, on what truly drives innovation. In a post on X, Vembu argued that research and development (R&D) is “not expensive but time-intensive” and that the best results emerge from teams committed for the long term, not from short-term projects or cost-cutting exercises.

“R&D is not expensive but time-intensive and best results are achieved by teams who stay committed long term,” Vembu wrote.

The Zoho chief used the example of American tech companies to make his point. He noted that the H1-B visa and the long green card process in the United States had an unintended but powerful side effect, they encouraged long-term employee commitment. Because switching jobs was difficult, workers, particularly immigrants, tended to stay longer with one employer, creating a stable and dedicated workforce for innovation-heavy roles.

“American companies solved the need for long-term committed people with the H1-B visa and the extremely long green card process, both of which made it painful or risky to switch jobs. This gave them a source of committed talent,” he explained.

Vembu further pointed out that many Indian professionals rose through the ranks in these companies not because of any deliberate policy but due to this structure. “There was no conspiracy to promote Indians,” he clarified, “it was one consequence of the visa/green card system.”

On this note, Vembu urged Indian tech firms to invest in building a culture that values long-term commitment to R&D rather than focusing solely on rapid growth or quick returns. “Tech companies in India need to realise the importance of this. It is about creating that culture of long-term focus on R&D,” he emphasised.

Zoho’s slow-and-steady philosophy

Vembu’s words carry weight, given Zoho’s own unique approach. Unlike most Indian SaaS companies chasing venture capital, Zoho remains proudly bootstrapped, privately owned, profitable, and deeply focused on in-house innovation. Its quiet perseverance has turned it into a global software powerhouse with millions of users worldwide.

Zoho’s philosophy mirrors Vembu’s call for long-term R&D investment. And it’s not just software where Zoho’s influence is expanding. In recent weeks, the company made headlines after Union Home Minister Amit Shah switched to Zoho Mail, giving the homegrown email service a major vote of confidence. The move sparked a surge of interest in Zoho’s products, positioning it as a symbol of India’s self-reliant digital ecosystem.

Arattai and the rise of Indian-made apps

Meanwhile, Zoho’s messaging platform Arattai, which means “chat” in Tamil, is quietly emerging as a serious challenger to WhatsApp. The app offers channel-based broadcasting, story-style updates, and multi-device support, all while championing the narrative of data sovereignty and homegrown tech independence.

The push for Indian-built apps like Arattai ties neatly into Vembu’s message. For him, true innovation is not about overnight success or flashy launches but about persistence, the willingness to build technology brick by brick over time.

In an era when artificial intelligence and deep tech demand years of training data, fine-tuning, and experimentation, Vembu’s reminder feels particularly timely. After all, as Zoho’s own journey shows, when teams stay the course, R&D isn’t a cost centre, it’s a long-term investment that pays off.

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