Dell to snap up Wyse for desktop virtualisation push

Dell has announced its intention to acquire thin client maker Wyse Technology in a move aimed at extending its portfolio in the growing desktop virtualisation arena.

The deal has been approved by the board of directors of both companies and is expected to close during the second quarter of Dell's financial year for 2012-2013. No figure for the deal was given, though.

Wyse has long been the leading manufacturer of thin client endpoint devices, but has more recently diversified into software to enable mobile devices to access remote desktop sessions via its PocketCloud clients, and also provides management tools.

Dell's acquisition of Wyse appears to be another step in the firm's strategy to become a comprehensive corporate IT supplier, able to outfit enterprise customers with a complete virtual desktop infrastructure portfolio combining back-end servers, networking and now a broad range of endpoint access devices.

"The Wyse Technology desktop virtualisation capability complements Dell's strongest-ever device and computing solutions portfolio," said Dell president of End User Computing Solutions, Jeff Clarke.

"[It] strengthens our position in offering customers among the broadest set of computing choices from the edge to the core to the cloud."

Meanwhile, Wyse chief executive, Tarkan Maner said that becoming part of Dell would give Wyse an even broader customer base than before and would also benefit existing customers.

"We believe that taking this step with Dell is a very natural progression for our business and offers our customers many great advantages not available to them today," he said.

Gartner research director Mark Margevicius agreed, saying that the acquisition made sense for both firms, as Dell's PC sales have slowed.

"Dell is embracing virtualisation, cloud, and services. Having devices and software solutions that bolster the offering makes perfect sense for Dell," he said.

"Likewise, Wyse struggled with being a smaller niche vendor competing against larger portfolio deals, like HP is able to offer."

HP made a similar acquisition of Neoware, then Wyse's biggest competitor, as far back as 2007, for similar reasons.

Being part of Dell allows Wyse technology to gain quicker and easier access to enterprise customers who were hesitant dealing with a niche vendor, Margevicius added.