VMWare Acquires Desktone for Desktop as a Service

Virtualization vendor VMware is expanding its virtual desktop infrastructure (VDI) capabilities by acquiring cloud-based provider of such services, Desktone. The deal reflect the growing VDI demand as well as businesses desires for cloud-based resources.

VMware is no stranger to VDI. Like rival Citrix, VMware has been plying virtualization on endpoints for the past several years as a means to augment growth. VDI has been seen as the greater growth potential as more than 60 percent of installed servers are already virtualized, meaning growth in this segment will soon plateau.

Desktone, a Boston-based company, offers reliable and scalable desktop-as-a-service (DaaS) that replicates the Microsoft Windows workspace experience. Moreover, it provides technology that delivers limited Windows instances or access to specific applications. The entire Desktone offering is hosted in the cloud, giving users scalable and elastic resources for their desktop needs.

As a market opportunity, VMware sees potential for delivery of virtual desktop services through its channel partners. With mobile and personally owned devices continuing to infiltrate the workplace, virtualized desktops are seen as a means for providing access to business applications and resources without the cost of thick clients or the security issues of open connectivity to non-business devices.

“Desktone is a leader in desktop-as-a-service and has a complete and proven blueprint for enabling service providers to deliver DaaS,” said Sanjay Poonen, executive vice president and general manager, End-User Computing at VMware. “By bringing Desktone’s innovative platform in house, VMware can accelerate the delivery of DaaS through its network of over 11,000 VMware service provider partners while helping to shape and lead the future of the industry.”

The logic behind the VMware acquisition of Desktone is sound. Desktone is a relatively young company with limited distribution capacity. VMware is in a pitch battle with Citrix (the alternative) and Microsoft (which is giving away its Hyper-V virtualization software). By bringing the two companies together, it provides VMware with cloud-based applications, while giving Desktone a broad distribution network to rapidly expand sales.

VMware gave no details on the value of the deal or how long it will take to integrate Desktone into its channel sales program.