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Dell Buys Wyse Technology To Expand Cloud Strategy

Dell Buys Wyse Technology To Expand Cloud Strategy
By Mark Long

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Dell's acquisition of Wyse Technology expands its cloud and virtualization portfolio. Consumers and businesses alike are adopting tablets and smartphones as their preferred computing platforms. The mobility software developed by Wyse Technology gives Dell a potential opening to exploit this trend. Dell plans an end-to-end cloud offering.
 


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Dell's IT Software Strategy

The Wyse acquisition is merely the latest step in Dell's execution of a comprehensive IT software strategy built on the company's 2010 acquisitions of systems management provider KACE, infrastructure virtualization and orchestration provider Scalent and cloud integration company Boomi. With the addition of Wyse, the goal is to offer large enterprises complete end-to-end software solutions that also help Dell grow its server, networking and storage hardware sales.

The cloud computing technology trend over the past two years has set the stage for the development of a new approach to IT that enables individual users and businesses "to have greater control over how they acquire or deliver IT services," noted Gartner Vice President David Cearley. This new approach also features a "reduced emphasis on the constraints of traditional software and hardware licensing models," Cearley said.

During Dell's latest business quarter conference call, the company reported that its consumer business grew by a mere 2.7 percent for the full fiscal year whereas sales of its large enterprise services rose by 18 percent in just the latest quarter.

"We believe there is significant opportunity for us to build a big business here," CEO Michael Dell told investors in February while praising Dell's KACE, Scalent and Boomi deals. "And I think you'll see [Dell make other [acquisitions] fitting within the very similar framework that we've used in the past."

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