Dell on Friday announced the closure of its acquisition of Wyse, propping up its position in the virtualised client and cloud client device market while helping soften the blow from the drop in its PC business.
Wyse will be combined with Dell's other virtualisation offerings in the server, storage and desktop markets to make the company a full-range provider of cloud computing and desktop virtualisation solutions.
Dell's plans to acquire Wyse were first unveiled in April. Wyse is reputed as the industry's top producer of thin client devices and related software used in building virtual desktop infrastructure (VDI) and cloud-based computing solutions.
The acquisition of Wyse is part of Dell's move to expand its business beyond its commodity hardware roots.
Wyse brings to Dell a full range of thin client and zero client devices, including a mobile thin client that looks like a standard portable PC.
Wyse also brings software for running and managing its client devices in cloud and virtualised Microsoft, Citrix and VMware environments, as well as PocketCloud, an application that turns a mobile device like an Apple iPad or iPhone into a Windows-based virtual PC.
For Dell, the acquisition of Wyse has become a way for it to get past the PC business, a market in which it remains a top vendor but is seeing sales slip thanks to the widespread adoption of Apple iOS-based and Google Android-based tablet PCs.
IDC last month said Dell shipped 10.1 million PCs in the first quarter of 2012, down from 10.3 million in the same period last year.
Dell suffered a 33 percent decline in its first quarter financial results, posting a net income drop of $US310 million ($A317m) compared to the same period in 2011.
Its consumer business was the hardest hit, a result of the company’s move to reposition itself as an enterprise services and solutions provider. Sales were down 12 percent from the same period a year ago to $US3bn.
Allie Coyne contributed to this report.
This article originally appeared at crn.com
Issue: 326 | April 2014
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