Round Rock-based Dell Inc. (DELL) has already repurchased around $1.6 billion in shares so far this year and executives said the second-largest computer maker in the world plans to buy another $2 billion before the end of 2011. Details about the plan came out at an analyst meeting on Tuesday.
Chairman and CEO Michael Dell opened Wednesday’s analyst meeting by saying that he is confident that the tech giant will continue a recent profit growth, as he increases his company’s investment in services and data management.
Dell said the company has made “great progress” in diversifying beyond personal computers and enhancing its information technology business by placing investment elsewhere. Dell is making huge strides to corner the cloud computing market as of late and is focusing on mid-market IT design.
Dell is on the record noting that the company wants to buy “everything around data centers” in attempts to keep its top spot in the computer server market.
Earlier this month, Canaccord Genuity analyst Paul Mansky wrote that with sales of personal computers waning due to the rise of tablets, the company needs to make a move into networking, and should do it by buying Brocade Communications.
Dell was recently awarded a $252 million contract to provide IT services and products through a six-year agreement with the federal Nuclear Regulatory Commission (NRC) to handle operations, management and updates to the NRC’s Office of Information Systems within the agency’s IT infrastructure as a whole.
The company also announced that it opened a new cloud research and development center in Dublin, Ireland, which will aid customers in shifting to cloud-based computing solutions. Dell has shown massive expansion in cloud services worldwide and the shift indicates another sign that the company is scaling back computer manufacturing in favor of the cloud.
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