After more than twenty years of hardware production, IGEL is shifting to a fully software-focused company. The organization’s future lies in IGEL OS, an operating system for thin client PCs. The move from hardware to software allows IGEL to secure recurring license revenue.
The organization ceases all production of new thin client PCs. Although the remaining stock remains available at distributors and resellers in the coming period, the supply of new devices comes to an end.
The move is made possible by IGEL OS. Since 2016, the organization’s transformation into a software company has been characterized by major investments in the operating system. Meanwhile, software licenses are IGEL’s main source of revenue. Instead of producing and marketing proprietary thin client PCs, IGEL will bring attention to the models of partners such as HP, Lenovo and LG.
Thin clients and IGEL OS
Thin client PCs are of interest to companies that intensively work with virtual desktop infrastructures (VDIs), desktop-as-a-service (DaaS) solutions and software-as-a-service (SaaS) solutions. Thin client PCs have the components necessary for fast network connections, but beyond that, performance is limited. The latter isn’t a problem for cloud-based applications.
In turn, IGEL OS is an engine for thin client PCs. The operating system doesn’t require powerful components and can be easily managed at scale. According to IGEL, the software is more cost-effective than Windows in thin client environments. IGEL distributes the software as a pre-installed operating system on the PCs of manufacturers.
In recent years, IGEL has invested in an ecosystem of more than 120 vendors whose software solutions, hardware and peripherals have been tested and approved for integrations with IGEL OS. By its own admission, the operating system powers more than three million endpoints spanning more than 17,000 customers.
The transition from a hardware to a software company was guided by consultants from Arrow Electronics. In a blog covering the transition, Arrow Electronics stated that IGEL’s non-hardware revenue has increased more than 100 percent over the past five years.