Last week, Reuters reported that Citrix is trying to sell itself outright instead of slicing itself up into parts and selling those as Elliott Management wants to do. They say Citrix has reached out to Dell and private equity firm Silver Lake Partners. (Silver Lake was the company that partnered with Michael Dell to take Dell private. They also helped buy Skype from eBay which they then sold to Microsoft.)
Sooooo…. what do you think?
Citrix + Dell = Deltrix?
First thing that pops into my mind is that of course Dell wants to build a big software business. That’s why they bought Quest. Of course Dell already has a lot of products that Citrix has. Their vWorkspace Suite competes against XenDesktop/XenApp, and they have mobile management solutions that compete against XenMobile.
Of course Dell’s current desktop virtualization and mobile management tools are not market leaders (at least not in terms of market share), so I could see the value of bringing Citrix on board. And Dell can probably fix a lot of the problems Citrix has now (product quality, broken sales compensation model, talent flight, general gloom and malaise, etc.).
I would imagine this would mean they’d essentially shut down vWorkspace and migrate any unique IP into XenDesktop/XenApp?
It would be kind of weird though because Dell also owns Wyse, so that would mean that Citrix and Wyse would be the same company. Where does that leave HP and the other thin client vendors?
Heck, where does that leave HP and the other *server* vendors? Will HP want to partner with Citrix for selling Citrix solutions? Will that drive HP to VMware? (Though with HP's split and servers being in one company and thin clients in the other, HP is kind of a mess right now when it comes to desktop virtualization, so I guess they have more important issues to sort out first?)
Speaking of VMware, what would a combined Dell+Citrix relationship look like for them? Dell and VMware do a lot of business together now. Would this mean that VMware would be less interested in pushing Dell?
Of course this has been the case for years since Dell owns vWorkspace, but Dell has managed that by not being in-you-face about marketing vWorkspace and treading lightly around both Citrix and VMware. (vWorkspace is kind of the great little product that just sits there in the background that they never talk about.)
Maybe VMware buys Hewlett-Packard, and Microsoft buys Dell+Citrix, and then we only have two huge companies to deal with in the desktop virtualization space?
On a personal note, we did a campaign with Dell last year called “Take your life back” which was about using Dell, Citrix, and Intel to make your desktop virtualization life easier. That was a fun campaign (my favorite video from it is below), except it was kind of a pain because we had to work with three separate vendors with three separate sets of ideas, approvals, timeframes, etc. A huge pain! So if Dell buys Citrix, then hey, that means we only have to deal with two different vendors instead of three, so that sounds good to me! :)