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January 17, 2014

IBM to Sink $1.2B Into Data Centers Worldwide in 2014

IBM image — IBM SoftLayer CEO Lance Crosby examines servers at the IBM SoftLayer data center in Dallas, Texas, Jan. 17, 2014. IBM announced it is committing more than $1.2 billion to significantly expand its global network of cloud data centers.

IBM will spend more than $1.2 billion this year to grow its global cloud footprint.

The $1.2 billion will be used to deliver cloud services from 40 data centers in 15 countries located in North America, South America, Europe, Asia and Australia.  The company will also open 15 new centers adding to the existing global footprint of 13 global data centers from SoftLayer and 12 from IBM. Some of the first data centers set to open are in China, Washington, D.C., Hong Kong, London, Japan, India, Canada, Mexico City and Dallas. The firm plans to expand into the Middle East and Africa in 2015.

IBM image

IBM image

“IBM is continuing to invest in high growth areas,” senior vice-president of IBM Global Technology Services Erich Clementi said. “Last year, IBM made a big investment adding the $2 billion acquisition of SoftLayer to its existing high value cloud portfolio. Today’s announcement is another major step in driving a global expansion of IBM’s cloud footprint and helping clients drive transformation.”

IBM’s new cloud investments will provide business clients with the ability to place and control their data globally, the company said.

IBM shelled out roughly $2 billion to acquire SoftLayer Technologies Inc. — which was the world’s largest privately held cloud computing infrastructure provider — last summer as it ups its game to better compete with Amazon Web Services (AWS) and other cloud providers.

IBM first entered the cloud computing arena in 2007 and has spent more than $7 billion snapping up 15 smaller companies to bolster its own offerings.

As of last summer after the acquisition, IBM’s data center count sat at 23. By the end of 2014, the company will have doubled that amount.

IBM still has its work cut out for it, however, if it intends to challenge AWS. Amazon’s service leads the cloud computing industry and has major clients — both large companies and government agencies.


Jennifer Cowan is the Managing Editor for SiteProNews.