Dell's acquisition a Wyse one, analysts say

02.04.2012
Dell's announcement on Monday that it had finalized an agreement to acquire thin client maker Wyse allows the company to fill a portfolio gap that had been exploited by competitors such as HP, according to industry experts.

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"It was always a way that HP could maintain a foothold in an account, or as a lead-in to steal business from Dell, says Forrester Research senior analyst David Johnson. "As client becomes more important for more companies, that becomes more and more of an exposure and a risk," he says, adding that the acquisition is "a great move for Dell."

In addition to removing a substantial competitive disadvantage in terms of pursuing new clients, the deal will provide existing Dell customers with more options. Given the presence of a "strong ecosystem" of Dell products, some might jump at the chance to implement thin clients without having to choose a new vendor, Johnson says.

Research vice president Mark Margevicius of Gartner Research echoes the idea of the Wyse acquisition being aimed at filling a crucial gap in Dell's lineup. The company's in-house attempts to enter the thin client market in the past have been notably unsuccessful, he says, describing those poorly received efforts as "bastardized PCs."

That said, Dell's traditional strength in other parts of the virtualization market provide a base from which the company can now move forward with its new hardware, according to Margevicius.