IBM is investing $1.2 billion for cloud expansion

Posted Jan 18, 2014

International Business Machines (IBM) is spending over $1.2 billion to expand their data centers and cloud storage business to reach new customers and markets. IBM is going to build 15 more data centers across the U.S., Canada, China, Hong Kong, India, the U.K., the Middle East, and Africa next year. This would bring IBM’s total data center count up to 40 in 2014.

IBM acquired cloud service company SoftLayer for $2 billion last year. This acquisition would help the company improve systems to integrate public and private clouds for clients. Ever since this deal passed, around 2,400 clients were added to their list of clients.

IBM is expecting their cloud services market to be worth $200 billion by 2020. “This global expansion is aimed at accelerating into new markets based on growing client demand for high-value cloud,” said IBM in a statement.

Last week, IBM also announced that they would be spending $1 billion to create the Watson Business Group, which would target businesses and consumers with the capabilities of the supercomputer. Watson is known for beating human contestants on the quiz show Jeopardy.

[Source: zdnet]