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Dell Closes Wyse Acquisition, Becomes A Top Cloud, Virtual Client Vendor

The acquisition of Wyse, a leader in thin client and zero client devices and related software for cloud and virtualized client computing, will help Dell lessen the impact from its falling PC business.

Dell, Round Rock, Texas, said Wyse will be combined with Dell's other virtualization offerings in the server, storage and desktop markets to make the company a full-range provider of cloud computing and desktop virtualization solutions.

Dell in April unveiled plans to acquire Wyse, the industry's top producer of thin client devices and related software used in building virtual desktop infrastructure (VDI) and cloud-based computing solutions.

[Related: Michael Dell: We're 'Not A PC Company' ]

Dell followed the move by promising that the Wyse acquisition will not impact its channel partners.

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. Zero clients are similar to thin clients except that instead of running a full operating system, the zero client runs only a kernel that gives it access to the server-based applications.

Wyse also brings software for running and managing its client devices in cloud and virtualized 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 business in which it remains a top vendor but where it is seeing its sales slip thanks to the widespread adoption of Apple iOS-based and Google Android-based tablet PCs.

IDC last month said that Dell shipped 10.1 million PCs in the first quarter of 2012, down from 10.3 million in the same period last year.

The drop in the PC business was a contributing factor in Dell's first-quarter revenue and earnings, reported earlier this month.

Dell was unable to provide further comment by press time.

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