On Monday, April 2, Dell announced it has signed an agreement to buy Wyse Technology, a privately held provider and a global leader in cloud client computing and desktop virtualization technologies. The acquisition of Wyse will allow Dell to expand its desktop virtualization capabilities, providing new solutions and services for Dell's portfolio of enterprise offerings.

The deal "enhances our portfolio in the critical area of cloud computing and further supports our efforts to help our customers innovate end-to-end IT solutions from the edge to the core of the cloud," stated David Johnson, Dell's Senior VP for corporate strategy.

Wyse Technology ranked top in thin client unit shipment volume in the fourth quarter of 2011, according to IDC, and it has shipped more than 20 million units worldwide and more than 200 million people use its products every day. Moreover, Wyse has more than 180 patents, either issued or pending, for its solutions, software and differentiated intellectual property. The company's solutions portfolio offers top thin client solutions with desktop virtualization, advanced management and cloud software.

Using Wyse's thin client PCs and related management software, enterprises can establish centrally managed client infrastructures. In addition, Wyse introduced the T10 "zero client" platform, allowing multiple end users to access Microsoft's Remote Desktop Services through monitor- and keyboard-only configurations.

Growing Market for Desktop Virtualization Solutions

"The total market for desktop virtualization solutions should continue to see strong growth globally, with the larger revenue and margin opportunities coming from the data center infrastructure, cloud and service offerings that are tied to thin client and desktop virtualization technology sales," wrote Matt Eastwood, an analyst for IDC, in a research note. According to IDC, enterprise spending on virtual desktops and related technologies is expected to top $15 billion by 2015.

Dell's efforts to expand beyond its hardware business began when the company snatched Johnson from IBM in 2009, as Information Week first reported, to lead a more aggressive acquisitions strategy. Dell announced its $3.9 billion acquisition of outsourcer Perot Systems shortly after. In recent months, Dell has also completed the acquisitions of Force 10 Networks, Secure Works, and App Assure, and last month it announced an agreement to acquire SonicWall.

Its new agreement to buy Wyse Technologies has been approved by both companies' boards, and Dell said it expects to complete the acquisition by the end of its fiscal second quarter 2013. The company plans to add Wyse's resellers to its PartnerDirect program. "Our ability to now offer an industry leading cloud-to-client computing solution will provide opportunities for Dell to further accelerate the growth of our server, storage and network portfolio," said Johnson during the conference call with reporters and analysts.

(reported by Alexandra Burlacu, edited by Surojit Chatterjee)