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Dell Makes a Cloud Deal for Wyse

Computer maker is trying to deal with erosion in its core business


dell computer logoDell (NASDAQ:DELL) has agreed to purchase Wyse Technology, which develops cloud-based systems. The price tag of the transaction was not disclosed.

Wyse actually was founded more than 30 years ago as an operator of desktop terminals. But over the past few years, the company has transformed its business.

Now the company develops applications that allow businesses to access software from remote locations. The platform is called PocketCloud, which integrates with desktops and mobile devices from Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG).

It was a smart move. Last year, Wyse’s revenues spiked by 45% to $375 million and the company turned a profit.

Dell certainly faces continued erosion to its core PC business, especially from the rapid growth in tablets. But the company still has a massive customer base and can leverage this with cutting-edge cloud technologies, which should help boost growth and margins.

— Tom Taulli, InvestorPlace

Article printed from InvestorPlace Media,

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