Dell buys Wyse, plays ‘cloud client’ game
Summary: Dell expands into thin clients and virtualization software with the acquisition of Wyse. — Dell said it will acquire Wyse Technology in a move that gives the company more virtualization heft and an entry in thin computing.
Context & Ripple Effects
Dell had already been broadening beyond PCs through the EqualLogic storage acquisition and the Boomi cloud-computing purchase, while its earlier streamed-PC effort showed an interest in centrally delivered desktop computing. Wyse adds the endpoint and virtualization layer to that evolving enterprise portfolio.
The deal also follows Dell's announced SonicWALL purchase, making the Wyse move part of a wider push toward higher-margin enterprise capabilities rather than a standalone device transaction.
First-order effects
- Dell gains Wyse's thin-client and virtualization capabilities, extending its enterprise offering from infrastructure toward the devices used to access centrally managed computing.
- Wyse becomes part of Dell's enterprise portfolio, giving its thin-client products access to Dell's sales reach and installed business customer base.
Second-order effects
- Enterprise buyers evaluating desktop virtualization can weigh a more integrated Dell stack spanning storage, cloud-related software and thin-client endpoints, rather than sourcing each layer separately.
- Dell's emphasis on thin computing raises the value of vendors that can pair endpoint hardware with virtualization management and enterprise infrastructure.
Third-order effects
- If Dell combines these acquired capabilities into a coherent offer, enterprise-system vendors will increasingly compete for ownership of the user endpoint as well as the underlying infrastructure.
- The transaction points to a market in which PC makers seek durable enterprise revenue by acquiring software and infrastructure capabilities around managed workloads.
The trend: PC vendors are using capability acquisitions to reposition around enterprise infrastructure, cloud delivery and managed endpoints rather than standalone hardware sales.