Dell's strategy for Wyse unit: hire, not fire
- 29 June, 2012 22:27
Dell completed its acquisition of Wyse Technology just last month and is now hiring, and not cutting, employees.
Over the next year or so, Dell plans to add more than 200 employees, from engineering to marketing, to the approximately 525 now employed by the unit, said Jeff McNaught, CMO and chief strategy officer at Dell Wyse.
Since taking over Wyse, Dell has retained all of its executives and employees, said McNaught. Dell's objective is to increase Wyse revenue by about $400 million to $1 billion in the next year or so. Dell did not disclose the sales price of Wyse but it is betting on a few things to propel its growth.
By acquiring Wyse, Dell added a company that it already had a longstanding relationship with. Dell sold its own thin clients but if a customer wanted a Wyse-specific offering, Dell would accommodate.
McNaught said that Dell sold a lot more Wyse thin clients than its own clients. As a combined firm, Dell and Wyse will focus on integrating systems as well as engineering systems to work with specific Microsoft, Citrix or VMware platforms, he said.
Half of Wyse's customers are in the public sector, education, government and health, but it also does well in financial services and retail.
These are the traditional thin client areas, but as enterprises figure out ways to support multiple devices -- mobile, tablets and desktops -- the thin client's virtualized model has real opportunity to expand, say analysts.
Worldwide, thin client makers shipped about 4.6 million units last year, according to IDC and that's estimated to increase to 8.3 million units by 2015 for an annual growth rate of nearly 17%.
Tom Mainelli, research director of mobile connected devices at IDC, believes that the growth of tablets could help drive commercial purchases of thin clients.
"More enterprises are embracing the idea of serving up employees a desktop that resides in the data center," said Mainelli. "When these employees are at their desk in the office, a thin client is often the endpoint that serves them that desktop."
The Dell Wyse revenue goals are aggressive, "but they're certainly not impossible," said Mainelli, who adds that Wyse's software growth will help.
Wyse has been increasing its software offerings, notably its PocketCloud, an app that allows remote access to desktops.
McNaught said that one of the things that helps with Wyse sales is its intellectual property, specifically its firmware technology, ThinOS, an alternative to Windows embedded and Linux. The software, written in C++ and Assembly, is about 4 MB and the company claims is virus proof because it is a closed system without APIs in it.
Charles King, and analyst at Pund-IT, said he isn't surprised by Dell's decision to keep the Wyse staff, and said Dell has kept staff and managers on the payrolls in some of its other acquisitions. It fits Dell's strategy of "acquiring a significant amount of expertise in an area where they don't have a lot of expertise," he said.
King believes Dell and Wyse will be helped by Windows 8, which is being designed to work as a mobile and desktop platform. "The thin client players believe there is a real opportunity for them," he said.
Patrick Thibodeau covers cloud computing and enterprise applications, outsourcing, government IT policies, data centers and IT workforce issues for Computerworld. Follow Patrick on Twitter at @DCgov or subscribe to Patrick's RSS feed. His e-mail address is email@example.com.
Read more about hardware in Computerworld's Hardware Topic Center.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
- Pathways Advanced ICT Leadership Development Program Course Outline and Big 6 2013
- Redbook - Scalable, Integrated Solutions for Elastic Caching Using IBM WebSphere eXtreme Scale
- Analyst Paper: Total Cost of Ownership
- Business Continuity Planning IT Survival Guide
- Social Media Toolkit: Example Acceptable Usage Policy
Larry Page wants to see your medical records
Dual-Persona Smartphones Not a BYOD Panacea
After two-year hiatus, EFF accepts bitcoin donations again
CIOs struggle to deliver timely mobile business apps: survey
Spiceworks' free management software gets integrated MDM
Mobile Load - Performance Testing for Mobile Applications
Key mobile trends and analysis on how performance testers must change their testing methodologies to ensure they are accounting for the changes caused by mobile usage. Download today.
The Foundation for Cloud Management
For businesses looking to provide real-time business solutions to employees and customers alike, you need to have a comprehensive network management strategy. The network is the foundation of all successful cloud services; it must be robust to meet traffic, efficiency, and performance demands. Download today the four steps to get your network operations cloud-ready.
Agentless Security for Virtual Environments
Virtualised datacentres, desktops, and cloud computing should be secured by the same strong protection technologies as physical machines. However, traditional agent-based solutions that are not architected for virtualisation can result in a number of significant operational security issues. Find out more about the first agentless security platform solution.