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Dell to Expand Data Centers in Asia Pacific to Support Cloud Computing Demand

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Dell announced this week it will be expanding its data center footprint across the Asia Pacific region to support its rapidly growing cloud computing services, according to a report by IDG.

Dell has only been offering cloud computing services since last April as part of its global cloud computing expansion strategy, investing $1 billion throughout the year to launch and sell cloud services, starting with email archiving and a hosted virtual desktop software.

This new emphasis on the Asia region marks a significant shift in Dell’s strategy, which has mostly been focused on markets in US, Middle East, Africa and Europe. It also signals the growing demand for cloud computing services in the Asia region in general.

Amit Midha, Dell president for Asia Pacific and Japan, said the company will build more than 20 data centers in Asia Pacific and Japan, as demand for private and public cloud hosting services continue to grow.

At the time of its cloud services launch, Dell said it would plan 10 modular data centers for global expansion in the next 24 months, which it will use to support its cloud-based services, hosting Azure clouds, VMware clouds and OpenStack clouds.

But with the demand for cloud computing growing beyond the company’s expectations, it will now expand its footprint to more than 20 data centers in Asia.

Midha did not give a specific time frame as to when he expects the data centers to be built, but rather that the cloud data centers will be built on a per demand basis.

Dell will likely build its first data center in India, but the company is also seeing strong demand for design services and  equipment in China. The region could also potentially serve  as a hub for Dell to deliver services into Korea.

Dell opened its first cloud computing data center in Shanghai last July, as well as expanded staff at its Taiwan Design Center from its current 600 members to 700 in November. China has contributed to 20 percent revenue growth for Dell, while the APJ region has seen a 10 percent revenue increase.

Last month, Dell acquired cloud computing based backup and replication software developer AppAssure.

Talk Back: Are you currently offering cloud computing services in the Asia Pacific region? Have you noticed a significant rise in demand for cloud computing services in this region? Do you see value in expanding your cloud computing services in the Asia Pacific region? Let us know in the comments.

About the Author

Justin Lee has been a staff analyst with theWHIR since 2004. He writes about a range of web hosting and IT-related issues facing the industry on the WHIR website, as well the print version of the WHIR magazine. Follow him on Twitter @Justin_theWHIR.

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