Dell owns Compellent Technologies Inc., whose Storage Center with Network Attached Storage is seen in this handout photo. Source: Compellent Technologies Inc. via Bloomberg
Dell Inc. (DELL) plans to spend $1 billion
over the next two years to open 10 data centers and expand
customer support to make it easier to sell hardware, software
and services to large companies.
The data centers will let Dell handle a wide range of
computing tasks for customers, the Round Rock, Texas-based
company said today. Dell also plans to open 12 “global solution
centers” this year and an additional 10 during the next 18
months. They would pair Dell technical staff with customers.
Dell aims to expand beyond its roots as a personal-computer
seller and capitalize on the growth of cloud computing, which
involves delivering software and information via data centers.
The company is offering a broader selection of products, making
acquisitions and hiring sales staff -- all part of a plan to
double the size of its data-center business to $30 billion
within three years.
Dell rose 6 cents to $14.84 at 4 p.m. New York time on the
Nasdaq Stock Market. The shares have gained 9.5 percent this
year.
The new data centers, which will house computing, storage
and networking equipment, will be located in unspecified parts
of the U.S., Europe and Asia, said Steve Schuckenbrock,
president of Dell’s services division. Three of the facilities
will be in the U.S., he said. The other centers, meanwhile, will
be labs aimed at helping customers solve technical problems,
Schuckenbrock said on a conference call.
Microsoft’s Azure
The data centers also will help support work Dell is doing
with Microsoft Corp. (MSFT)’s Azure software. By the middle of this
year, Dell plans to begin offering cloud-computing services that
rely on Azure, Carter George, an executive director in Dell’s
storage group, said in an interview last month.
Dell said earlier this week it will consolidate four
Northern California offices into a new research and development
center that will employ as many as 1,500 people within five
years. The office would help Dell recruit engineers and other
staff to support its growth in data-center computing, the
company said.
Under Chief Executive Officer Michael Dell, the company has
made acquisitions such as storage maker Compellent Technologies,
security-software company SecureWorks, and Ocarina Networks,
which makes hardware and software for reducing data storage
requirements. It also made an earlier purchase of Perot Systems
Corp., a computer-services provider, in November 2009.
The buying spree has been slow to fuel growth at the
company, said Shaw Wu, an analyst at Sterne Agee & Leach Inc. in
San Francisco. The recent acquisitions have only accounted for 3
percent to 4 percent of revenue, he said in a report last month.
Dell also faces competition in data-center services from
Hewlett-Packard Co., International Business Machines Corp. and
Oracle Corp., said Wu, who has a “neutral” rating on the
stock.
“The company remains in a tough fundamental position,” he
said.
To contact the reporters on this story:
Aaron Ricadela in San Francisco at
aricadela@bloomberg.net
To contact the editor responsible for this story:
Tom Giles at tgiles5@bloomberg.net