Dell's Wyse buy a hedge against slowing PC sales

02.04.2012
Dell's plan to buy Wyse Technology is an effort to boost its client hardware portfolio and protect the company from the effects of the recent slowdown in PC sales, analysts said on Monday.

Wyse provides thin-client hardware and related software tools for virtualized and Web-based computing environments. With PC sales declining, Dell had to boost its thin client portfolio not only to keep enterprise customers engaged, but also to catch up with competitors like Hewlett-Packard, analysts said.

Thin and zero-client devices are alternatives that could help companies move to virtualized environments and the cloud, and Wyse provides the expertise, distribution channel and intellectual property, said Jeff Clarke, Dell's vice chairman and president, global operations and end-user computing solutions, during a conference call.

Wyse's thin clients run on the proprietary ThinOS, Linux and embedded Windows OSes, and the company also offers a software stack compatible with Microsoft, VMware and Citrix virtualized environments. Dell until now resold Wyse technology, and also offers virtual desktop options through .

"The momentum around alternative computing is a trend that we see many customers continuing to experiment with and in many cases, beginning to deploy. The adoption rates are still relatively low for desktop virtualization, but there clearly are a lot of customers out kicking the tires," Clarke said.

The adoption rate of virtual desktops is growing at a rate somewhat similar to server virtualization close to a decade ago, Clarke said. The technology is especially gaining importance in the heavily regulated environments of government, financial services and health care, where data security and management rules are especially strict, he said.