Dell To Spend $1 Billion On Cloud Data Storage

Apr 7, 2011

One of the largest employers in Central Texas, Round Rock-based Dell, announced this morning that it will spend $1 billion to build 10 data centers around the world as it seeks to expand into the growing cloud computing market.  Bloomberg reports this morning that the data centers would provide a wide range of services. 

Dell aims to expand beyond its roots as a personal-computer seller and capitalize on the growth of cloud computing, which involves delivering software and information via data centers. The company is offering a broader selection of products, making acquisitions and hiring sales staff -- all part of a plan to double the size of its data-center business to $30 billion within three years.

The technology news site CRN has an in depth analysis of Dell's ongoing spending spree on cloud computer services, which it reports is already nearing $2 billion.  

A recent Dell filing with the U.S. Securities and Exchange Commission (SEC) sheds light onto just how many dollars Dell has dropped to amass a small army of cloud computing companies as Dell hones its cloud computing strategy. The Form 10-K that Dell filed with the SEC indicates that Dell's cloud spending is inching close to the $2 billion mark as Dell and its channel rev their cloud engines.

Not to be left out of the party, IBM made a major announcement regarding its cloud services today.  The company is launching what it calls a second generation cloud services for business called "Smartcloud". IBM is forecasting $7 billion in revenue by 2015 from its range of cloud services.