By Nicole Henderson,May 31, 2011
An image of Dell's EqualLogic server from its website
(WEB HOST INDUSTRY REVIEW) -- Technology giant Dell (http://www.dell.com/) is looking to acquisitions to expand its server market, according to a report by Bloomberg.
According to the report, Amit Midha, Dell's president for Greater China and South Asia said on Tuesday that Dell is interested in buying "everything around data centers."
"We want to continue to bring innovation through acquisitions," Midha said in a statement.
Earlier this year, Dell bought virtualized storage firm Compellent Technologies for about $960 million to build out its storage offerings.
The data center market apparently makes up half of Dell's profit, Bloomberg reports.
Recently, Dell entered the cloud hosting market with a plan to invest $1 billion this year on cloud services like email archiving and a hosted virtual desktop.
Midha says Dell has about 70 percent of the market for servers in the US, and 60 percent in China.
There has been an increase in demand from Chinese IT firms looking for servers for search-engine, e-commerce and social networking services, Midha says.
According to the report, China is Dell's largest market by revenue outside of the US.
The Wall Street Journal reports that Dell plans to spend approximately $100 billion in China over the next 10 years.
In April, Chinese-government owned server manufacturer Inspur launched its "smart cloud" container based cloud data center product. The modular container-based design has grown in popularity for cloud providers including HP, Sun Microsystems and Microsoft.
Recently, Singapore has been the focus of data center and Web hosting expansion. Specifically, Web hosting provider Tata Communications announced its plans to invest $357 million in Singapore over the next four years.
Article Source http://www.thewhir.com/web-hosting-news/053111_Dell_Looks_to_Acquisitions_to_Expand_Server_Business permits to repubish here
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