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IBM to invest $1.2bn in cloud services expansion

Carl

By Carl
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Carl Newbie

Carl

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IBM is to invest more than $1.2 billion in building up to 15 new datacentres across five continents to expand its cloud services and reach new clients and markets.

The new cloud centres will be in Washington DC, Mexico City, Dallas, China, Hong Kong, London, Japan, India and Canada, with plans to expand in the Middle East and Africa in 2015.

IBM said the investment will bring up its datacentre count to 40 this year and double cloud capacity for SoftLayer, which leases online storage space to companies and was acquired by IBM last year for $2 billion.

"This global expansion is aimed at accelerating into new markets based on growing client demand for high-value cloud," the company said in a statement.

IBM said the global cloud market is estimated to grow to $200 billion by 2020.

More companies are opting for cloud computing, which lets them rent computing power, storage and other services from datacentres shared with other customers, which is typically cheaper and more flexible than maintaining their own.

It also plans to use SoftLayer's web hosting technology to deliver cloud services.

IBM said since its acquisition of Dallas-based SoftLayer in July 2013, the business has added 2,400 new clients.

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