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Dell To Spend $1 Billion On Cloud Data Storage

Dell's Round Rock headquarters. The company employs about 16,000 people in Central Texas.
Photo by Dell
Dell's Round Rock headquarters. The company employs about 16,000 people in Central Texas.

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.

Nathan Bernier is the transportation reporter at KUT. He covers the big projects that are reshaping how we get around Austin, like the I-35 overhaul, the airport's rapid growth and the multibillion-dollar transit expansion Project Connect. He also focuses on the daily changes that affect how we walk, bike and drive around the city. Got a tip? Email him at Follow him on X @KUTnathan.
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