Computer maker Dell plans to buy data storage company 3PAR for $1.15 billion in cash, expanding its cloud computing business to compete with other technology services companies like IBM.
The deal will further expand Dell's presence in technology services, a business that often yields higher profit margins than personal computers but is increasingly competitive. IBM has been expanding its services business, as have other rivals like Hewlett-Packard and Oracle.
Such companies have also been stepping up investment in cloud computing, a technology that enables users to access data and software over the Internet and corporate networks.
Dell, which bought technology services company Perot Systems last year for $3.9 billion, said 3PAR's technology would help customers reduce data management costs, including hardware and energy consumption.
Dell has been struggling to boost profitability as personal computers become cheaper. The recent surge in costs of components has also hurt its margins.
