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Dell Pursues Cloud-Based Virtual Desktops With Wyse Buy

Dell announced Monday that it is acquiring San Jose, Calif.-based Wyse Technology, a maker of VDI software and thin clients. The news comes just days after Dell launched a virtual desktop infrastructure (VDI) refresh centered around Citrix and VMware desktop virtualization software, new 12G PowerEdge server hardware and expanded cloud-based offerings.

The move signals that the IT giant is buying Wyse to boost sales of its enterprise systems, adding momentum to Dell's narrowing focus on the data center. By acquiring Wyse, Dell also gets some valuable IP and substantial market presence.

Driving Data Center Sales?

Wyse brings 180 patents and more than 300 resellers to the table. Its product portfolio and global footprint make it a thin-client leader in the VDI market, which is booming, according to Matt Eastwood, vice president of the Enterprise Platform Research group for 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 data center infrastructure, cloud and services offerings that are tied to thin-client and desktop virtualization technology sales," he stated.

And that can drive demand for Dell's data center products, like servers, the company's bread and butter. "Thin-client and desktop virtualization solutions typically drive high attach rates to data center solutions, including servers, networking, storage and services," says Eastwood.

Clouds Surround the Virtual Desktop

The announcement also indicates that Dell has bigger plans for cloud-based VDI.

Wyse has positioned itself as a cloud-based client computing provider in recent years. Today's deal is an extension of that strategy, according to the Wyse's president and CEO, Tarkan Maner.

"The combination of Wyse and Dell provides us with tremendous growth opportunities for our core desktop virtualization business, 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," said Maner in a company statement.

Wyse currently offers management and virtualization software that covers VDI platforms from Microsoft, Citrix and VMware. It also specializes in mobile device support and services that extend virtual desktops over cloud infrastructures.

The companies expect the deal to close this summer during the second half of the Dell's 2013 fiscal year (currently in 1Q2013). Terms were not disclosed.

Pedro Hernandez is a contributing editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals. Previously, he served as a managing editor for the Internet.com network of IT-related websites and as the Green IT curator for GigaOM Pro. Follow him on Twitter @ecoINSITE.


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This article was originally published on April 2, 2012
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