IBM throws over $1bn into cloud and data centre market

IBM has committed over $1.2 billion (£730 million) to increasing its data centre count and expanding its cloud offerings.

Big Blue says it will build 15 new data centres across five continents, to attract more clients and penetrate fresh markets. This will see the company's data centre count reach a total of 40 by the end of the year.

The money will also double the storage capacity of SoftLayer, the cloud services firm that IBM purchased for $2 billion (£1.2 billion) last year. IBM claims that the subsidiary has brought Big Blue 2,400 new clients.

"This global expansion is aimed at accelerating into new markets based on growing client demand for high-value cloud," IBM said.

IBM expects the global cloud market to be worth $200 billion (£122 billion) by 2020.

The new data centre facilities will be built in London, Mexico City, China, Hong Kong, Japan, India, Washington, Dallas and Canada.

IBM plans to increase its activities in the Middle East and Africa in 2015.

Last week, the computing giant announced the creation of a new $1 billion (£607 million) division for its supercomputer Watson.

Back in 2011, Watson made headlines by beating Harvard and MIT students on general knowledge quiz show Jeopardy, and again attracted attention for learning a number of swear words.