AUSTIN, Texas-Computer kingpin Dell Inc. (DELL) completed a deal to open a new research and development center in Silicon Valley and plans to hire 700 people by the end of 2011 and a total of 1,500 workers through the next five years. The projected staff should occupy at least 240,000 square feet of building space in Santa Clara, Calif. The second-largest computer maker in the world employs approximately 14,000 workers in the Austin region.
Round Rock-based Dell is also expanding in China as the country is the company’s second-largest market outside of the United States and shows expansion on a rapid and global scale as Dell began construction on its new manufacturing center in China late last month. The new operations plant will be in Chengdu, the capital of Sichuan, and is Dell’s second launch in the country after opening a plant in Xiamen, in the eastern province of Fujian.
The new manufacturing venture, first announced in September 2010, is expected to employ 3,000 workers and produce its first set of products in the fourth quarter. The push in China, which includes plans to invest $10 billion through the next 10 years, coincides with statements by CEO Michael Dell that the company will add operations in India. Last month, the CEO stated that the company plans to hire thousands more in India, where there are already 23,000 employees.
Dell previously published plans to acquire Mountain View, Calif.-based Kace Networks Inc. in February 2010, which targets the information technology departments of midsized commercial and public organizations, and San Jose, Calif.-based Ocarina Networks Inc. in July 2010, a company specializing in storage optimization technology. Financial records of both transactions were not released.
Dell also launched a research and development center last month with the assets of Exanet Ltd., a failed Israeli storage company that was acquired in Februrary 2010 for a reported $12 million, giving the firm a presence in the Middle East. According to published reports, the staff of 70 at the R&D center in Israel is expected to double this year, and focus on developing storage and cloud computing for Dell products. The acquisitions suggest the computer giant is diversifying business ventures so it’s not as dependent on computer sales.
Dell’s revenue for all of 2010 finished at $61.5 billion, rising from $52.9 billion in 2009.
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