Dell Wants To Ride Windows 8 Wave With Thin Client Offering

July 30th, 2012 by Trefis Team
13.56
Trefis
DELL: Dell logo
DELL
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Dell (NASDAQ:DELL) added another offering to the Wyse thin-client portfolio by announcing a thin client designed to work on Microsofts Windows 8 OS due to release later this year. It will be tuned to work with the touch-based Metro user interface of the OS.  The touch interface is more interactive and intuitive and these thin clients are likely to be aimed at education, infomation kiosks and hospitality businesses. The new hardware will be showcased at VMware’s VMworld conference in San Francisco between August 26 and 30. [1]

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Dell’s Wyse unit already offers a range of other products such as laptops, monitors and zero-client desktop boxes. These interfaces receive information via virtual desktops or remote desktops. The Wyse thin clients are based on both the x86 and ARM processors and runs the proprietary ThinOS.

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To make networking more efficient, Wyse has licensed and modified the upcoming Windows Server 2012 with an updated version of RDP (remote desktop protocol), to enable better delivery of touch-based features to remote desktops. Thin clients essentially remove the need to do computing at the client end, and makes it cheaper by pooling resources and serving up data from remote servers. This makes thin client computing cheaper in the long run and easier to maintain. If we go by IDC’s estimate, the thin client market size will grow to about $3 billion by 2015 at a CAGR of 15%. [2] Thin clients are a major component in the virtualization value chain and we expect Dells hardware sales to improve in the thin client and virtualization segments.

We have a $19.22 Trefis price estimate for Dell, which is significantly higher than the current market price.

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Notes:
  1. Dell to Introduce New Wyse Thin Clients for Windows 8 OS, www.pcworld.com, July 25, 2012 [↩]
  2. Dell Reinvents Itself to Survive A Post PC Era, Dailyfinance.com [↩]