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April 02, 2012

Dell to Acquire Cloud Software Maker Wyse Technology

By Erin Harrison, Executive Editor, Cloud Computing

PC maker Dell (News - Alert) has agreed to acquire cloud software company Wyse Technology in an effort to expand its desktop virtualization offerings. A virtual desktop allows enterprises to more efficiently and securely manage their users and end point devices.

The acquisition was approved by the board of directors of each company and remains subject to customary conditions and is expected to close in the second quarter of Dell’s FY13. Financial terms of the deal were not disclosed.

San Jose, Calif.-based-Wyse offers “thin client” solutions with management, desktop virtualization and cloud software. With this acquisition, Dell said it expands its enterprise solutions portfolio. 

“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 of 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.”

Industry analysts predict significant growth in the desktop virtualization market. Research firm IDC (News - Alert) forecasts the end-to-end datacenter infrastructure stack, which is comprised of servers, networking, storage and services, will exceed $15 billion by 2015.

Thin client and desktop virtualization solutions typically drive high attach rates to data center solutions, according to Matt Eastwood, group vice president of Enterprise Platform Research at IDC. 

“The total market for desktop virtualization solutions should continue to see strong growth globally, with the larger revenue and margin opportunities coming from the datacenter infrastructure, cloud and services offerings that are tied to thin client and desktop virtualization technology sales,” Eastwood said.

According to IDC, Wyse ranked No. 1 in thin client unit shipment volume on 4Q 2011, and has shipped more than 20 million units worldwide. The company has more than 180 patents, both issued and pending, covering its solutions, software and differentiated intellectual property.

Edited by Jennifer Russell
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