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Wyse Can Add Up to $2.5B to Dell Revenues

Financial details of the purchase price of today's announcement that Dell will acquire privately-held Wyse Technology were not released, but company executives put Wyse' 12-month revenues at $375 million, up 45% year-over-year. The associated server, storage and services revenues attached to the original thin-client sale average 5X, i.e. $5 of additional hardware, software and service sales for every $1 of the Wyse sale.

During an analysts' call on Monday following the announcement, Dave Johnson, senior vice president, Dell Corporate Strategy, said Wyse has 500 employees with 150 in R&D, 140 of them in software, “which is really key.” He expects the acquisition to be accretive by the second half of this year, and while those numbers are based on Wyse continuing to match industry growth rates, he believes its much higher growth levels and access to Dell's broader portfolio of products, services and 100,000 resellers will result in much higher growth.

Clarke says Dell isn't seeing a mass migration to alternative computing. Adoption rates are low, but many are kicking the tires, and he thinks this is an opportunity around verticals like government, healthcare and financial services.

The Wyse portfolio includes a wide selection of secure, reliable, cost-effective thin and zero clients designed to easily integrate into any virtualized or Web-based infrastructure, cloud software, management software, virtualization software, mobility software and services. Dell says it will grow and foster existing relationships with thin client and virtualization partners like VMware, Microsoft and Citrix.

Dell has had an ongoing relationship with Wyse for many years, says the company. The company also says it is "excited" about the potential to bring WYSE IP in thin client and mobile device management into the Dell Systems Management portfolio. "KACE remains an important and integral part of that offering."

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