Dell will create 150 jobs over the next two years at plants in Limerick and Dublin, the computer giant has announced.
Recruitment has already begun for software engineers at the company's first cloud computing research and development centre at Cherrywood, Dublin.
The operation will work on ways for its customers to store digital files on remote computer servers - rather than on a personal laptop or home computer - and access them through the internet.
Known as cloud computing, it cuts storage costs for users and is already used by anyone who sends emails through the likes of Gmail, or stores photos on Facebook or other social networking sites.
Taoiseach Enda Kenny said the IDA-backed investment will help Ireland's ambitions of becoming a world-leader in cloud computing.
"The calibre of Dell people and the nature of their work in Ireland are consistent with our ambition to be a knowledge-driven economy," he said. "We are very pleased to see continued momentum in this direction, especially the creation of new jobs in this vital sector of our economy."
Dell is also seeking IT architects, engineers and developers for its solution centre in Limerick, which will work with business customers on their technology needs.
Junior trade minister Jan O'Sullivan said: "It has been very tough for unemployed people in Limerick who have seen little prospect of work in recent years but today's news gives real hope and opportunity for many of them."
Ms O'Sullivan also launched the National Franchise Centre in Limerick, which expects to create hundreds of jobs in the coming years. The initiative trains people to run their own franchise business. More than half of the first participants are former Dell employees, who were laid off in 2009.
Dell employs more than 2,200 people in Dublin and Limerick.