Dell Inc. CEO: I want to see it go to the moon and back, not just to cloud computing
Dell Inc., the largest PC maker in the world, said on Thursday it plans to spend more than $100 billion in a venture capital fund to launch a cloud computing business that it says will help power its data center.
The $100-billion investment will help Dell build a new data center in China, which is home to the world’s largest Internet of Things (IoT) and home to about half of all cloud computing data, according to a statement by Dell’s Chief Executive Officer and chairman Jeff Immelt.
The new facility will be called the Dell Data Center in China and the company said the investment will allow Dell to expand the global footprint of its cloud computing operations.
Immelt said the data center will have a “robust business model” that will allow it to serve customers around the world.
Dell has struggled to make inroads in China with a market that is largely dominated by homegrown PC makers such as Lenovo Group and Asus.
In addition to the new data centers, Immelt also said the company will build out a global supply chain that includes the development and manufacturing of the company’s next-generation server chips, servers and networking hardware.
The company also plans to expand its IT capabilities to support cloud computing.
Immel said the move is part of a broader strategy to help drive innovation and build a sustainable business model in China.
Dynabox and its ilk are growing increasingly important for companies looking to grow into new markets, such as the United States, as they compete against Amazon and Google for the attention of tech workers.
But the move could also boost Dell, which has struggled in recent quarters with slowing demand in China because of the recession.
The Dell investment will provide some breathing room for the PC maker as it tries to gain a foothold in the country’s increasingly lucrative online shopping market.