| HP thinks thin, gobbles up Neoware |
Jul. 23, 2007
 HP on July 23 announced plans to acquire thin client specialist Neoware. Valued at $214 million, the deal represents a major vote of confidence in Windows- and Linux-based thin clients, and in the emergent market for virtualized client computing.
Neoware has been the third-largest thin client vendor, after Wyse and HP. Pending regulatory approval, an HP-Neoware combination could create a worthy competitor to Wyse, which a year ago claimed to have a 44 percent share of the thin client market in the U.S., 35 percent in Asia Pacific, and 27 percent in Western Europe.
"Our objective is to become the preferred brand of thin clients and software for virtualized client computing," said VP of business desktops Kevin Frost. "We don't anticipate any regulatory hurdles," he added.
In a statement, HP said "the transaction will combine the respective strengths of each company: Neoware's Linux-based thin client solutions and software with HP's thin clients based on Microsoft Windows XPe and Windows CE and its virtualized client solutions." However, Neoware has previously described itself as "platform agnostic" and also brings Windows Embedded expertise to the table.
 Neoware has claimed several "firsts" in thin client computing. In October of 2006, it claimed to have become the first top-tier thin client company to ship a thin-client notebook design, the m100 (depicted at right). Touted as extending the security benefits of network computing to mobile workers, the m100 runs either Windows XP Embedded or Linux.
Virtualized client computing
Earlier this year, Neoware announced a VDI Edition family of thin clients aimed at virtualized client computing systems. Running Windows XP Embedded or Linux, these support VMware's Virtual Desktop Infrastructure (VDI), IBM's Virtual Client solution (VCS), and Citrix's Dynamic Desktop Initiative (DDI).
Virtualized client computing is typically based on technologies such as VDI, Microsoft Virtual Server, or Xen, the open source server virtualization technology promoted by HP competitor Novell. Like other virtualization technologies, virtualized client computing technologies divide the host server's physical resources -- memory, storage, processor cycles, etc -- into multiple virtual machines (VMs) remotely accessible via the network (see figure below).
VMware VDI typical use
(Source: VMware. Click to enlarge)
Unlike traditional thin client computing, virtualized client computing gives users their own virtual PC, complete with dedicated hardware resources like memory and processor cycles. This is claimed to produce a more PC-like experience for users, while still offering administrators some of the advantages of network computing -- easier installation, upgrades, and patches, and better support for unattended backups.
In answer to questioning, Frost said he "would not rule out" the possibility of HP acquiring additional companies offering virtualization technology on the server side.
Neoware CEO Klaus Besier, meanwhile, stated, "Acquiring our company will further strengthen HP's PC business. Together, we will continue to promote the shift to virtualized client computing."
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