DESKTOP PC FLOGGER Dell will buy thin-client vendor Wyse for an undisclosed sum.
Dell has spent the last five years trying to shrug off its image as a beige box shifter with a significant push into the enterprise. Michael Dell even said, "Dell is not a PC company". Now the firm is moving further away from its tin box roots by buying Wyse, a company that's well known for its thin-client products.
Dell announced that the two firms have signed a definitive agreement that will expand Dell's range of products associated with the achingly fashionable cloud. While neither party disclosed financial terms, Dell said the transaction is expected to affect its earnings in the second half of its 2013 fiscal year.
Tarkan Maner, president and CEO of Wyse Technology said, "The combination of Wyse and Dell provides us with tremendous growth opportunities for our core desktop virtualization business, helps us expand into new and fast-growing market segments including mobility and cloud computing, and provides us with reach and scale we did not previously have."
Dell's purchase of Wyse shows the firm is trying to back up its impressive server sales by improving its lagging 'front office' sales of desktop and laptop PCs. As enterprises move towards hosted infrastructures running on cloud services, the need to upgrade desktops or laptops is fast diminishing as they are starting to be treated as thin clients.
So Dell is pre-empting any loss of desktop sales in the enterprise by picking up the biggest thin-client vendor in the industry. Also while Dell is presently nowhere in the highly competitive smartphone and tablet markets, Wyse already has software thin clients for Apple's Ipad and Google's Android, which can be expected to give Dell some traction there. µ