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Friday, January 17, 2014
IBM To Invest $1.2 Billion On Cloud Expansion

IBM plans to commit over $1.2 billion to expand its global cloud footprint, with investments on a network of cloud centers.

This year IBM plans to deliver cloud services from 40 data centers worldwide in 15 countries and five continents globally, including North America, South America, Europe, Asia and Australia. IBM will open 15 new centers worldwide adding to the existing global footprint of 13 global data centers from SoftLayer and 12 from IBM. Among the newest data centers to launch are China, Washington, D.C., Hong Kong, London, Japan, India, Canada, Mexico City and Dallas. With this announcement, IBM plans to have data centers in all major geographies and financial centers with plans to expand in the Middle East and Africa in 2015.

By some estimates, the global cloud market is set to grow to $200 billion by 2020.

"IBM is continuing to invest in high growth areas," said Erich Clementi, senior vice president of IBM Global Technology Services. "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 acquired SoftLayer in 2013. The company plans to establish SoftLayer as the foundation of its wide ranging cloud portfolio. The SoftLayer infrastructure will provide a scalable, secure base for the global delivery of cloud services spanning IBM's middleware and SaaS solutions.

Last week IBM made an investment and established the IBM Watson Group, a new business unit dedicated to the development and commercialization of cloud-delivered cognitive and Big Data technologies. As part of this initiative IBM will also deploy Watson on SoftLayer.

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