Dell Acquiring Thin Client Vendor Wyse

By Sean Michael Kerner | Apr 2, 2012 | Print this Page
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Dell is making its second acquisition of 2012 today, with a deal to acquire thin computing vendor Wyse Technologies. Dell announced its intention to acquire network security vendor SonicWALL in March.

Financial details of the Wyse deal were not disclosed.

With Wyse, Dell will be bringing thin client computing technology in-house as part of larger portfolio play that will see Dell's networking, storage and server business units all benefit.

Dave Johnson, senior vice president for Dell Corporate Strategy commented during a conference call with press on Monday morning that the Wyse acquisition will enhance Dell's position in the cloud computing space. "It provides synergies with our enterprise solutions business and provides Dell and our customers the ability to integrate server, storage and network solutions."

Jeff Clarke, president of Dell End User Computing noted that Dell sees a growing opportunity in cloud-client computing, including thin client hardware, client infrastructure management software, virtualization and end-user optimization software, as well as, networking services. In his view, the Wyse technology complements and extends Dell' virtualization capabilities.

"The acquisition of Wyse and its portfolio of industry leading capabilities is the next step in our end user computing strategy," Clarke said. "To date, Dell has relied on partner IP solution to solve the thin client market."

Clark added that now Dell is bringing thin client IP in-house will be more profitable and help to deliver on their vision of end-to-end computing. For Wyse, being acquired will give them new scale and reach that will grow Wyse's solutions faster than before.

"We believe that taking this step with Dell is a very natural progression for our business and offers our customers and channel members some great advantages that are not available to us ... at our scale and current size," Tarkan Maner, president and CEO of Wyse Technology said during the press call.

Dell is taking a very broad view of how Wyse and its thin client technology will integrate into Dell's portfolio. Clarke noted that in many places where thin clients are deployed, an end-to-end solution is required. Clark added that thin client platform deployments are usually all about engaging with the customer in a consultative manner. The consultation involves determining where a thin client or full client may fit and what the network, compute and storage requirements will involve.

The services and hardware that surround a thin client deployment are likely worth more to Dell than the thin client deployments on their own.

"For every one dollar of thin client revenue in the marketplace there is five dollars of servers, storage, networking and services that help implement that," Clark said. "It's not only about taking advantage of the thin client marketplace that is growing at 15 percent, it's about increasing access to the five dollars of value, that sits behind it."

Sean Michael Kerner is a senior editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals Follow him on Twitter @TechJournalist.