Dell declares intention to expand lead in Internet servers

Dell ChinaRound Rock-based Dell Inc. (DELL) said yesterday that the company wants to buy “everything around data centers” in attempts to keep its top spot in the computer server market.

The world’s second-biggest maker of personal computers continues expansion and is targeting company acquisitions across the globe that offer computer server services to clients such as Facebook Inc., Google Inc. (GOOG), Baidu, Inc., Tencent Holdings Ltd., and Alibaba Group Holding Ltd. Such servers are necessary to enable Web tools like search engines, social media interaction and online commerce platforms.

At a media briefing in Hong Kong, Amit Midha, head of Dell operations in China and South Asia stated, “We want to continue to bring innovation through acquisitions.” Midha added that data centers comprise half of Dell’s current profits.

According to Midha, Dell provides data storage to around 70% of cloud services in U.S. markets and 60% in China. The company reported that data center operations have helped Dell increase net income last quarter from $341 million to $945 million. The company plans to double the number of service centers in China to 2,000 by the end of the year and expand its sales workforce in China, which currently is comprised of approximately 15,000 outlets.

Dell has shown growth internationally and in Silicon Valley as of late, with an emphasis on expanding server business in China, which recently became Dell’s biggest market outside of the United States and is the world’s biggest Internet market by number of users. Dell acquired data storage firm Compellent Technologies in February for about $800 million.

Dell currently offers its “Streak” tablet computer with a screen measuring about 5 inches, and plans to debut a larger version later this year in China. Other plans include a bigger push into the Asian smartphone market.


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