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Dell to buy Wyse Technology


Dell Inc. (DELL), the world’s third-largest maker of personal computers, agreed to buy closely held Wyse Technology Inc. for an undisclosed sum to gain desktop devices used by cloud-computing customers.

The acquisition of Wyse, which has shipped more than 20 million units of its devices worldwide, will boost earnings in the second half of fiscal year 2013, Round Rock, Texas-based Dell said today in a statement. Wyse is based in San Jose, California.

“A deal for Wyse makes strategic sense for Dell as a way to leverage its massive installed base of PCs,” like moving to virtualization of networks on desktops, said Brian Marshall, an analyst with ISI Group in San Francisco, in a note to investors. He has a neutral rating on the shares.

It will be interesting to see how Dell will capitalize on this investment, building upon their existing virtualization offering, as well as create opportunities to user groups and communities that might not have necessarily linked Dell with client virtualization. I wonder if we might see more specific virtualization type solutions with the next generation of Wyse/Dell products and software, we will have to see, I’m off to read more of the announcement.

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