Dell's acquisition of KACE: A smart move

Dell's acquisition of KACE: A smart move

Summary: Dell acquired KACE, which makes systems management appliances, for an undisclosed sum and the deal adds up on many fronts.

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TOPICS: Dell, Networking
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Dell on Thursday acquired KACE, which makes systems management appliances, for an undisclosed sum and the deal adds up on many fronts.

Andrew Nusca has the breakdown of the deal and Dell's statement outlines the following:

  • Dell intends to use KACE to better target midsized businesses;
  • KACE's appliances are aimed at midsized companies and public institutions;
  • These appliances find devices, take systems inventory and manage IT assets;
  • Smaller companies with less than 5,000 PCs find these KACE devices handy because they just don't have the time or will to do systems management chores.

So why does this deal add up?

Strategically, KACE fits in well with Dell's plan. For starters, KACE's verticals (government, education and healthcare) align nicely with Perot Systems, a services outfit recently acquired about Dell.

See all resources on KACE.

But more importantly, KACE can help Dell pluck off a lot of business among small and mid-sized businesses. A few market observations:

  • Mid-sized businesses (also think large SMBs) have poor systems management so there's a market need.
  • HP and IBM have full suites of systems management tools that are geared toward larger enterprises. Simply put, your typical mid-sized business doesn't need these big suites.
  • Dell can make KACE appliances more efficiently.
  • Dell already had established relationships with smaller companies and can move KACE gear.

Add it up and Dell-KACE is a nice combination that could pluck a lot of low-hanging fruit in the mid-sized market.

Topics: Dell, Networking

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6 comments
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  • Nice products......

    I went through some demo's of this product and it looked robust and feature rich. Good buy I think.
    OhTheHumanity
  • What happened to Altiris

    Is this going to replace their Openmanage product that was a stripped down version that Altiris\Symantec sold?
    relwolf
  • RE: Dell's acquisition of KACE: A smart move

    after BAD customer support, placing
    jobs overseas, reducing jobs(Last year, Dell announced that it was cutting 8,800 jobs from its payroll and Thursday the company said that it has already laid off 5,550 employees), last week Dell announced that it was closing one of its desktop manufacturing facilities as part of its layoff program and indicated that it wants to reduce expenses by as much as $3 billion per year over the next three years.
    Dell commanded 19 percent of the worldwide PC market share and led its closest competitor, HP, by about 3 percent. Since then, the company's worldwide market share has slipped to below 13%, all in 2008. The M. Dell
    got his hands slapped was also accused of misleading consumers into believing they had qualified for promotional financing, failing fully to disclose the terms of its 'next day' service contracts, and failing to provide consumers with warranty services and promised rebates; just a tip of the ice berg.
    Me and my dell no longer afilated. Help
    customers of future KACE.
    who
    bigjon
  • RE: Dell's acquisition of KACE: A smart move

    As a Kace customer for many years I think the move strengthens both organizations and will benefit the entire industry long term. I'm excited for Kace and Dell going forward.
    blakeontheriver
  • RE: Dell's acquisition of KACE: A smart move

    It is a smart move for Dell. But a smart move for SMB's is Desk Center USA at half the price and installation time of under one hour. They offer a two week trial period that doesn't disappoint!
    anfra
  • RE: Dell's acquisition of KACE: A smart move

    I think this is a good sign for SMB's and Midsize organization, it is also a sign for other vendors to start looking at that potential market who are & searching for enterprise-class but low priced IT management solution. ayehu (www.ayehu.com)provider of Runbook Automation Solution for Small & Midsize IT operations, eyeShare is the product company enables IT pro's & system manager to simply manage their IT systems env.
    gabbynizri@...