Dell Buying Wyse; Will Desktop Virtualization VARs Engage?

Dell Buying Wyse; Will Desktop Virtualization VARs Engage?

Dell is buying Wyse Technology to push deeper into desktop virtualization. Terms of the deal were not disclosed. Dell has been busy swallowing a long list of technology companies -- including SonicWall (firewalls), Force10 (networking), Compellent and EqualLogic (storage), Boomi (cloud integration), SecureWorks (SaaS Security) and managed services (Kace). So, how do all those pieces potentially fit together? And where do 3,000 Wyse resellers fit into the Dell picture? Here are some clues from The VAR Guy.

First up -- today's news: Dell claims thin client and desktop virtualization solutions (i.e., Wyse) have high attach rates to data center solutions such as servers, networking, storage and services. So in theory, Dell plans to connect the dots between Wyse and its other recent acquisitions.

Wyse claims to have an installed base of more than 20 million units worldwide and over 200 million people "interacting" with its products. Dell also says Wyse has roughly 180 patents issued and pending -- suggesting that Dell will have intellectual muscle in the thin client and virtual desktop infrastructure (VDI) markets.

Over the past two years or so, privately held Wyse has tried to reposition itself as more of a cloud solutions provider -- promoting s0-called "cloud clients" that integrate with virtualized and web-based infrastructure. The company has also worked closely with Microsoft (MSFT), Citrix (CTXS) and VMware (VMW) on VDI efforts.

Dell and Wyse Channel Partners

Resellers are a big part of Wyse's story. The company has more than 3,000 resellers and channel partners. Wyse President and CEO Tarkan Maner has been an outspoken channel advocate, but Dell will need to work overtime to keep Wyse partners comfortable and loyal.

When Dell recently announced plans to buy SonicWall, some SonicWall partners expressed concern about Dell's direct sales efforts and commitment to the channel. But channel industry leaders such as HTG Peer Group Founder Arlin Sorensen called on partners to remain patient, and Dell Channel Chief Greg Davis assured SonicWall partners that Dell was committed to them.

To Dell's credit, the company has earned positive feedback from Compellent and EqualLogic partners over the past year or so.
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