Facebook, Dell to Team on Cloud Computing

Facebook and Dell (DELL) are working together on a project that will represent "the next generation of cloud computing." This can't be good news for Rackable (RACK).

CNet reports that Facebook and Dell are working together on a project that will represent "the next generation of cloud computing." There's lots of hype around cloud projects, but this is one to watch given the two companies.

Why bother noting this before it's announced on Tuesday? Whatever the details may be, it's hard to believe that it's good news for Rackable (RACK) which counts Facebook as its fourth-largest customer after Microsoft, Yahoo and Amazon. Facebook recently borrowed $100 million to buy servers, and the cloud computing announcement suggests a bunch of that cash is headed to Dell.


Dell and Rackable are fierce competitors, and both companies have recently shown off new servers optimized for cloud computing, including Rackable's Extreme Efficiency XE servers and Dell's XS23 Cloud Server. Both companies also developed data center containers to compete for Microsoft's business as it looks to fill its new Chicago data center with more than 150 shipping containers packed with high-density gear.

TAGS: Facebook
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