HP Buys Neoware, Eyes Virtualized Client Computing

HP on July 23 announced plans to acquire Linux thin client specialist Neoware, in a deal valued at $214 million.

Hewlett-Packard on July 23 announced plans to acquire Linux thin client specialist Neoware, in a deal valued at $214 million. HP said the deal will boost its thin client Linux software, and help the company compete in the emergent market for virtualized client computing systems.

Neoware is the third-largest thin client vendor, after Wyse and HP. Of the three, it alone is "committed to the Linux operating system," it said in February of this year, when it last revised its NeoLinux OS.

Assuming the deal passes regulatory approval, it could create a worthy competitor to Wyse. About a year ago, Wyse claimed to have a 44 percent share of the thin client market in the United States, 35 percent in Asia Pacific, and 27 percent in Western Europe.

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During the past year, Neoware has claimed a couple of "firsts" in thin client computing. Its m100 thin client notebook, introduced last October, was touted as the first device aimed at extending the security benefits of network computing to mobile workers. And, in March, it announced a new VDI Edition of thin clients aimed at virtualized client computing systems. It was Neowares virtualized thin client technology that appears to have convinced HP to acquire the company.

Kevin Frost, VP of business desktops, stated, "Our objective is to become the preferred brand of thin clients and software for virtualized client computing."

Virtualized client computing is typically based on VMwares VDI technology. Like other virtualization technologies, VDI divides the hosts physical resources— memory, storage, processor cycles, etc.—into multiple VMs (virtual machines). With VDI, though, VMs are remotely accessible via the network.

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