IBM to Invest $1.2 Billion in 15 New Softlayer Data Centers

IBM will invest $1.2 billion to expand its cloud business and build on its acquisition of Softlayer data centers last year. The plans call for 15 new data centers worldwide, including new Softlayer facilities in Washington D.C., Mexico City, Dallas, China, Hong Kong, London, Japan, India and Canada. The expansion will bring the number of IBM cloud data centers to about 40 worldwide.

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Last summer, IBM agreed to acquire SoftLayer Technologies, which operates 13 data centers in the United States, Asia and Europe.  Bloomberg valued the deal at about $2 billion.

SoftLayer allows clients to buy enterprise-class cloud services on dedicated or shared servers, offering clients a choice of where to deploy their applications. The company is based in Dallas, Texas, and serves approximately 21,000 customers.  

The acquisition strengthened IBM's position in cloud computing.  At the time of the deal, IBM said its expects to reach $7 billion annually in cloud revenue by the end of 2015.

IBM also announced the formation of a new Cloud Services division. The new division will provide a broad range of choices to both IBM and SoftLayer clients, ISVs, channel partners and technology partners. SoftLayer’s services will complement the existing portfolio with its focus, simplicity and speed. The division will report to Erich Clementi, Senior Vice President, IBM Global Technology Services. IBM plans to expand SoftLayer cloud offerings to include OpenStack capabilities.