On Monday, IBM opened a new SoftLayer datacenter in Hong Kong as part of a $1.2 billion investment to strengthen its cloud services in Asia and all over the world. The Hong datacenter represents the first of 15 datacenters that IBM plans to open worldwide this year, bringing its total fleet of centers to 40 by the end of the year. Separate from the Hong Kong datacenter, IBM currently has 13 SoftLayer data centers and 12 from IBM. The Hong Kong data center has capacity for over 15,000 servers and complements IBM’s presence in Asia by way of the Singapore datacenter and “network points of presence” in Hong Kong, Singapore and Tokyo. Moreover, it positions SoftLayer to serve the entrepreneurial community’s cloud services needs in Hong Kong. IBM intends to deploy data centers in all major geographic regions and financial centers worldwide, including plans to extend its cloud services presence to Africa and the Middle East in 2015.
IBM today announced that it exceeded $1 billion in quarterly cloud computing-related revenue for the first time in the company’s history. Of the $1 billion in cloud revenue, “$460 million is delivered as a cloud service” according to Mark Loughridge, IBM’s Senior Vice President and Chief Financial Officer, Finance and Enterprise Transformation. IBM’s cloud-related revenue for 2013 was up 70% in comparison to the same time period last year. A large part of IBM’s growth in the cloud segment of its revenues is presumably attributable to its July acquisition of SoftLayer, an IaaS public cloud solution that additionally features dedicated server and managed hosting solutions. IBM’s Smarter Planet and Analytics solutions delivered similarly impressive results with its Smarter Planet platform reporting earnings up 20% through September and its Analytics solutions up 8% through 2013. Cloud revenue represented a bright spot in an otherwise mixed earnings report for IBM marked by a 4% decline in overall Q3 revenue to $23.7 billion.