Dell Buys Quest Software: How this Move Affects the Future of Managed Services

So the rumors are indeed true. Dell has now bought Quest Software for $2.4 billion, which is equal to $28 per share. This is one bold strategic move that will pit this computer giant to major managed services software companies who have been considered as the leaders of this IT service category. Dell beat other major bidders who also planned to buy the systems management solutions company for a hefty $2 billion price tag.

Looking at Quest’s technology management tools under its belt, Dell might be planning to branch out and not just focus on personal computing and management. Desktop virtualization and management software for Windows and Microsoft are just some of the major tools of the software company, which has earned a formidable reputation with its cloud services and automation software.

Dell has already tried its hand with workspace and systems management, as well as security and data protection in the past, and it has recently been extended with the company’s newly formed software group. This move will make the company one of the greatest bit players in the cloud services and management software business in the next few years.

Over 1,300 software developers and 1,500 software sales experts from Quest software will be joining Dell’s team, ensuring that the move to acquire the managed services provider will help create a strong foundation for Dell to develop its own line of management products for its customers and partners.

We can now expect Dell to be one of the top competitors in the manages services spaces and cloud services market, which is currently being dominated by VMWare, Kaseya, Level Platforms, Continuum, and GFI Software among others. Also expect the computer giant to strengthen its position in this market through additional purchases of automation software providers and data center management companies in the next few quarters.

Dell will now be able to provide its customers and partners with RMM or remote monitoring and management software services as well as PSA or Professional Services Automation software where the very popular cloud based management platform named PacketTrap, which was acquired by Quest software in the last few months, can be used.

The future of managed services seems to become a bit brighter with this move from the personal computing giant, but it will take quite a while for us to see how Dell decides to fill in it’s missing service lineup with its acquisition of Quest software. Nevertheless, experts are predicting a sizable growth for Dell in terms of its capability as well as its size.