Dell and Quest Software: Nearing Acquisition Announcement?
Dell is nearly ready to announce its Quest Software (NASDAQ: QSFT) acquisition, pundits suggest. If true, Dell appears set to gain desktop virtualization, managed services and Microsoft Office 365 cloud migration services. So how will partners potentially benefit from Dell buying Quest Software — if the deal truly is official? Here are some educated guesses from The VAR Guy.
First, the background: Dell apparently will pay about $2.32 billion to buy Quest Software, topping a bid from Insight Venture Partners and its funding friend, Vector Capital. Although Dell has never confirmed that the company is bidding to buy Quest Software, a July 1 Bloomberg report suggested Dell and Quest Software could announce the alleged deal as soon as July 2.
If Dell is buying Quest Software, it sets up Dell to potentially compete against:
- VMware in the desktop as a service (DaaS) and virtual desktop integration (VDI) market.
- Data center management and automation software providers.
- Cloud integrators and on-premises software migration specialists that shift customers to Microsoft Office 365 and other cloud offerings.
- Managed services software companies that offer PSA (professional services automation) and RMM (remote monitoring and management) software. Quest’s PacketTrap business competes in those markets against such RMM providers as Continuum, GFI Software, Kaseya, Level Platforms, N-able and many others. PacketTrap is just getting started in the PSA market, where such companies as Autotask and ConnectWise compete.
That all sounds intriguing. But remember: There’s a chance rumors about Dell buying Quest Software are false. In the past month, the Dell-Quest conversations have triggered on-again, off-again M&A rumors. This time, the rumors point to a real deal between the two companies. But are the rumors finally true?