Wyse Can Add Up to $2.5B to Dell Revenues

April 2, 2012: 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.

According to the officials, IDC says Wyse and HP accounted for between 50-70% of the thin-client market, with the next closest competitor holding at most 10%. IDC puts this market growing at 15% per year, and the end-to-end datacenter infrastructure stack for these solutions is expected to exceed $15 billion by 2015. Dell expects this acquisition to expand its enterprise solutions portfolio and offer customers a broader array of solutions.

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Author: Steve Wexler

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