Teradici layoff, restructuring separates VDI and Cloud endeavors

Last week I heard news that Teradici had laid off a number of employees, including Randy Groves. I got in touch with CEO Dan Cordingley, and this is what I learned.

Last week I noticed a comment on my recent article about Teradici that said the company had recently laid off a number of employees, including CTO (and former BriForum speaker) Randy Groves. I checked Randy’s LinkedIn page to confirm he was no longer there, then reached out to Teradici’s CEO, Dan Cordingley, to find out what’s going on.

According to Dan, it is true that Teradici has gone through a reorganization, and a result of that is a series of layoffs (or “headcount reductions”) that included Randy. The driving force behind the move was that Teradici feels they will be better off dividing their efforts in the Zero Client/VDI and Cloud spaces into separate business units. Until recently, they’d been treating them as two sides of the same coin, but as the cloud business has grown, they’ve found key differences in the customers, partners, and go to market strategies of each side.

On the cloud side, Dan said that Teradici is continuing to work with AWS, Azure, and IBM Softlayer to deliver access to workloads that leverage a GPU. It’s less about DaaS than it is remote access to GPU-accelerated workloads like engineering or video rendering applications that require massive cloud resources. As more public clouds support GPU instances, Teradici plans to work with them as well.

Dan also shared that the Zero Client / VDI market for them has been “vibrant” and continues to be successful, which is good news for companies that are married to Teradici’s PCoIP protocol and have invested in thin clients. Of course, VMware continues to invest in their Blast Extreme protocol, so the dynamics of this business unit and the partnership with VMware could still be in flux. In fact, I wonder if this move is setting up the opportunity for Teradici to sell off the Zero Client / VDI wing to another company. I don’t know what company would be a buyer, and I want to be crystal clear that I have heard nothing that would indicate that Teradici is looking for a buyer, but this reorganization might make it easier to sell off one business unit while keeping the other.

That’s enough speculation for now. The bottom line for the customer today is that it sounds like you can expect business as usual. Of course, it’s always tough to see layoffs, and I wish everyone affected the best of luck. This is the second round of layoffs in the past few years, so hopefully Teradici has things lined up where they need to be and everything will calm down from here on out.

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