Dell this week signed a definitive agreement to acquire Wyse Technology, a leader in cloud client computing, to significantly extend its desktop virtualization offerings. The addition of Wyse is projected to expand Dell’s desktop virtualization capabilities and provide new solutions and services opportunities for the full range of Dell’s enterprise offerings.
“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,” said Jeff Clarke, president of end user computing solutions at Dell.
In some environments, a virtual desktop allows enterprises to more efficiently and securely manage their users and end point devices. With this acquisition, Dell expands its enterprise solutions portfolio and offers customers an ever broadening array of tailored solutions to meet their needs.
"Wyse enhances Dell’s ability to provide an end-to-end desktop virtualization solution to all parts of the stack (client, data center, and cloud). Although Wyse brings a higher commodity hardware mix to Dell in the near to mid-term, the enhanced desktop virtualization solution stack should drive higher data center hardware, software and services–related revenue growth for Dell over time, in our view," wrote Mark Moskowitz, an analyst with J.P. Morgan, in a note to clients, reports Tech Trader Daily blog.
Wyse, ranked No.1 in thin client unit shipment volume on Q4 2011, has shipped more than 20 million units worldwide and has over 200 million people interacting with its products each day. The company has more than 180 patents, both issued and pending, covering its solutions, software and differentiated intellectual property.
Wyse offers a wide selection of secure, reliable, cost-effective thin and zero clients designed to easily integrate into any virtualized or web-based infrastructure, while meeting the budget and performance requirements for any application. Wyse also provides cloud software to manage various devices and offers a wide range of cloud computing services to complement its cloud clients and software solutions.
"Wyse generates double digit margins which are nearly twice as those posted by Dell’s PC business and compare with the company’s overall operating margin of 8-9%. Additionally, there will be an opportunity to attach more enterprise solutions in virtual desktop installations," said Abhey Lamba, an analyst with Mizuho Securities.
The combination of Wyse and Dell is expected to provide growth opportunities for desktop virtualization business and expand into new and fast-growing market segments including mobility and cloud computing
“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. 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,” said Matt Eastwood, group vice president of enterprise platform research at IDC.