Virtualization, Mergers and Acquisitions, Content

Microsoft Acquires Desktop Virtualization Software Startup FSLogix

Microsoft has acquired FSLogix, a Windows 10 and Office 365 virtualization software company that could simplify VDI (virtual desktop infrastructure) and Remote Desktop Session Host (RDSH). Financial terms were not disclosed.

FSLogix's software, the company claims, enables virtual desktop administrators to "massively reduce the number of Windows Gold images, easily manage per-user applications, optimize license costs while assuring compliance, and eliminate some of their biggest problems in VDI and RDSH."

Key FSLogix adopters include Cherry Health, Emory Healthcare, Equity Bank, Neovia Logistics and Okada, according to the software company's website. Deployments typically range from less than 1,000 to over 50,000 users, the software company has previously indicated.

FSLogix, based in Atlanta, Georgia, raised $7.5 million in Series C funding in March 2018, bringing total funding at the time to $12.5 million.

Microsoft and FSLogix: Windows & Office 365 Virtualization Synergies

It sounds like the FSLogix acquisition could be related to Microsoft Windows Virtual Desktop, a Microsoft 365 service that allows partners and customers to deploy and scale Windows and Office on Azure. In particular, watch for synergies between FSLogix and Office 365 ProPlus --  "enabling faster load times for user profiles in Outlook and OneDrive," the company indicated.

Microsoft works with a range of desktop as a service (DaaS) and Workspace as a Service (WaaS) companies. Key names to know include CloudJumper. True believers include Synoptek — one of the MSP industry’s larger players — which white labels CloudJumper for deployment in healthcare, financial services, manufacturing, and other highly regulated industries.

FSLogix also has partnerships with Amazon Web Services (AWS) and VMware, but we're curious to see if those relationships remain in place under Microsoft's ownership.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.