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HP to buy Teradici to improve virtual-desktop delivery

Teradici would provide HP with technology to help customers bolster the performance of their virtual desktops. HP expects to close the deal this year.

HP has agreed to buy Teradici, a maker of software that boosts the performance of virtual desktops. The computer maker said the acquisition would lead to higher-performing hosted desktops for customers with remote workers doing computing-intensive tasks.

HP announced the deal this week and expected to close the transaction before the end of the year. The company did not disclose financial terms.

Teradici is known for its PC over IP (PCoIP) protocol, which delivers virtual desktops for high-performance uses, like CAD and 3D rendering. Based in Burnaby, B.C., Canada, the company has partnered with cloud vendors like AWS, Google Cloud and Microsoft Azure, and virtual desktop providers like VMware and Amazon WorkSpaces.

HP said it would combine Teradici's technology with HP's ZCentral Remote Boost software, which provides remote access to physical workstations. Engineers, animators and video editors could use the combined product to access their desktops using a PC, Mac, iPad or Android tablet.

HP expects the deal to help it capture a share of the projected growth in the remote desktop market. Research firm Knowledge Sourcing Intelligence predicts the market will expand by 15.7% a year through 2026, driven partly by hybrid work. According to a PricewaterhouseCoopers survey, 55% of employees intend to work from home at least three days a week.

"[Teradici] will expand our addressable market, and meet growing customer needs for more mobile, flexible and secure computing solutions," said Alex Cho, an HP president.

Enterprise Strategy Group analyst Mark Bowker said the move positions HP to benefit from the upcoming release of Microsoft's desktop as a service, Windows 365. Bowker said he believes many HP customers will consider the Microsoft product to support remote workers.

"They can take an HP endpoint with Teradici PCoIP, connect it to Windows 365 and optimize the experience," Bowker said.

Florida Atlantic University is one of Teradici's customers. The college uses the PCoIP protocol to provide students with remote access to 3D apps. Mahesh Neelakanta, the university's director of technical services, said he saw the acquisition as a positive.

"I do think that HP would bring fresh perspective, money and vision in a field that is filling up fast with competitors," he said.

Neelakanta added that he would like to see HP improve Teradici's protocol service by delivering it to a browser running a virtual desktop, rather than through a separate client.

Mike Gleason is a reporter covering unified communications and collaboration tools. He previously covered communities in the MetroWest region of Massachusetts for the Milford Daily NewsWalpole TimesSharon Advocate and Medfield Press. He has also worked for newspapers in central Massachusetts and southwestern Vermont and served as a local editor for Patch. He can be found on Twitter at @MGleason_TT.

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