PC Killer?
by
Ken Schachter
on
30 July 2007, 16:16
Categories:
Computers
-
General news
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Finance
Topics:
vc
,
venture capital
,
Softbank capital
,
thin client
,
Citrix Systems
,
Highland Capital
,
Ken Schachter
,
Desktone
,
Paul Gaffney
,
Peter Bell
Desktone,
which aims to get companies to junk their PCs in favor of thin clients with virtualized
desktops, has landed $17 million in a series A funding round announced Monday.
Highland
Capital Partners and Softbank Capital led the round, which also included
China-based Tangee International and strategic investor Citrix Systems.
Desktone,
whose software is designed to tie together client devices, operating systems,
storage, applications, servers and network technology, is likely to face stiff
competition. Some corporate IT departments prefer to build the virtualized
desktop on their own. Startups like 2-year-old Kidaro, a New York City company
backed by Genesis Partners, Storm Ventures and Opus Capital Ventures, also will
be competing for a share of the market.
Microsoft,
whose Windows operating system reigns in the corporate workplace, in 2006 acquired
Softricity, whose chief executive was Harry Ruda, now the chief executive of Desktone.
Peter
Bell, a partner at Highland Capital and a Desktone board member, said Desktone,
based in Chelmsford, Massachusetts, offers the IT managers of
large corporations a respite from the complexities of managing thousands of
networked PCs.
“Their
software platform is removing some of the physical complexity where you might
have thousands of desktops,” he said. Desktone will provide the IT organization
a single management console.”
Ron
Fisher, also a board member at Desktone and managing partner at Softbank, the
cost of maintaining a personal computer in a corporate environment can be
several times the cost of acquisition.
“When you
move people’s PCs, the cost of getting them set up is several hundred dollars,”
he said.
Rather
than charge companies one large fee for its software, Desktone is selling “software
as a service,” charging companies a per-user fee per month or per year.
That
model appeals to companies seeking to improve their return on assets, said Desktone
Chief Operating Officer Paul Gaffney, who has served in senior positions at superstore
chains Staples and Office Depot.
One-year-old
Desktone already has some undisclosed corporate customers and intends to focus
initially on financial services firms in the Boston-New York City corridor,
Mr. Bell said.
Fort
Lauderdale, Florida-based Citrix Systems’ infrastructure is used in some virtualized
desktops to deliver software applications.
Though
some companies will want desktop users to have “thin clients,” allowing the IT
department to serve and store all information, others will be content to coordinate
software patches and updates through a “virtual desktop” on PCs, Mr. Fisher
said.