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Migrating Into Thin Air -- Dell Buys Wyse


Dell signed a definitive agreement to acquire Wyse Technologies, long considered the global leader in thin-client computing solutions.

    On April 2, 2012, Dell announced that it signed a definitive agreement to acquire Wyse Technologies, long considered the global leader in thin-client computing solutions. In fact, Wyse currently describes itself as the global leader in Cloud Client Computing. While the press release announced the acquisition as a move to expand Dell’s capabilities and presence in the desktop virtualization market, many observers see this as part of Dell’s strategy to provide a wider array of cloud computing solutions to customers.

    “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, and strengthens our position in offering customers among the broadest set of computing choices from the edge to the core to the cloud.”

    Some analysts, including Matt Eastwood of IDC, see the acquisition of Wyse as a hardware-sales play for Dell.  Eastwood observes that “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 center infrastructure, cloud and services offerings that are tied to thin client and desktop virtualization technology sales.” Eastwood continues, emphasizing that “Thin client and desktop virtualization solutions typically drive high attach rates to data center solutions, including servers, networking, storage and services. The end-to-end datacenter infrastructure stack for these solutions is expected to exceed $15 billion by 2015.”

    For many IT industry veterans Wyse achieved the coveted status of being considered the “Kleenex” of thin-client computing. Many IT professionals still generically refer to thin-client terminals as “Wyse boxes.” Clearly as the movement to cloud computing as a preferred IT strategy continues to expand, more companies will want to take advantage of the many advantages of deploy thin client devices at the network’s edge.  These advantages include enhanced manageability of user devices, reduced support costs thanks to consistency of configuration, far greater security as it becomes more difficult for end users to download and retain corporate data.

    In more recent years, Wyse has expanded beyond its thin-client hardware roots and added advanced management, desktop virtualization and cloud software to its portfolio. Adding these to Dell’s own growing complement of management software and services should result in a powerhouse set of offerings for customer networks.

     



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