IBM boosts international cloud computing investment
IBM boosts international cloud computing investment
Computing giant IBM is to spend more than $1.2 billion to expand its cloud computing business internationally.
During the next 12 months, it aims to roll out a further 15 new storage centres to bring its global total to 40. It has earmarked locations in London, Canada, Hong Kong, China, India and Mexico for the new centres.
The company predicts that the international market for cloud computing services will reach $200 billion by the end of the decade.
IBM’s vice president of cloud services, Dennis Quan, told V3: “This investment is about increasing our investment in cloud in response to demands from customers. By expanding our global cloud footprint we can do what it takes to provide enterprise-class cloud.”
He said that by basing the centres in customers’ countries rather than overseas, it would ensure that the different regulatory requirements for the cloud were met in the different territories. Since the acquisition, IBM has attracted a further 2,400 clients.
IBM’s cloud expansion follows last year’s acquisition of SoftLayer. IBM paid $2 billion for the cloud services company and the latest investment will double SoftLayer’s storage volumes.
The cloud computing spending is the second of two major investments that IBM has announced in 2014. It is also ploughing a further $1 billion into its supercomputer, called Watson. Watson was created to ‘think’ like a human and in 2011, won an edition of the US quiz show Jeopardy against human rivals.
IBM is aiming to reap revenues from Watson by offering businesses the opportunity to use its capabilities through the SoftLayer platform. As part of that, it wants developers to come up with apps to exploit the super computer’s capabilities, the BBC reported.
According to investment bank Credit Agricole, business generated by Watson could be worth more than 12 per cent of IBM’s annual earnings by 2018.
Businesses looking to move services into the cloud, should evaluate the performance of their existing network and consider setting up a leased line or MPLS network.
