Dell continues cloud alignment with Wyse acquisition

Dell has finalised a deal to acquire a leader in thin client cloud solutions Wyse Technology, in a move that is being seen as a clear development of the computing giant’s strategic shift to end-to-end enterprise solutions provider.

The acquisition, for an undisclosed sum, is one of a number of acquisitions Dell has made in recent weeks, and benefits both firms, opening Wyse up to Dell’s vast customer base, and enabling Dell to expand its enterprise desktop virtualisation functionality.

With traditional fears over security and data connection stability slowly ebbing away, Dell is manoeuvring itself to meet the growing demand for the flexibility and agility that virtualisation services can offer; while the acquisition also places it in a stronger position to challenge HP's standing in the thin client market.

“The total market for desktop virtualization solutions should continue to see strong growth globally, with the larger revenue and margin opportunities coming from the data centre infrastructure, cloud and services offerings that are tied to thin client and desktop virtualization technology sales,” said Matt Eastwood, Group Vice President, Enterprise Platform Research, IDC.

“Thin client and desktop virtualization solutions typically drive high attach rates to data centre solutions, including servers, networking, storage and services. The end-to-end data centre infrastructure stack for these solutions is expected to exceed $15 billion by 2015.”

Wyse, founded in 1981, supplied over 1m thin client units last year, ranking number one for shipments in Q4. The California-based firm serves customers in over 50 countries and holds more than 180 patents, both issued and pending, covering its solutions, software and differentiated intellectual property.

“Desktop virtualization can help organizations streamline IT management, improve productivity and security, and increase cost efficiency for discrete workloads or usage scenarios,” said Jeff Clarke, president, End User Computing Solutions at Dell.

“The Wyse Technology desktop virtualization capability complements Dell’s strongest-ever device and computing solutions portfolio,” he added. “And strengthens our position in offering customers among the broadest set of computing choices from the edge to the core to the cloud.”

“The combination of Wyse and Dell provides us with tremendous growth opportunities for our core desktop virtualization business,” said Tarkan Maner, president and CEO, Wyse Technology. “[It] helps us expand into new and fast-growing market segments including mobility and cloud computing, and provides us with reach and scale we did not previously have.”

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