Goldman Sachs invests $70m for minority share in User Virtualization leader, AppSense

Goldman Sachs, the most prestigious investment bank in the world has invested $70m in AppSense.  The funding comes at a time where User virtualization (UV) technologies are being recognized as one of the most essential components in both today’s, and tomorrow’s computing strategies, with many of the UV vendors all experiencing record growth.  AppSense, who for years have been leaders in this space, will use the investment to fuel further growth and capitalize on the demand for AppSense User Virtualization solutions in a market that is expected to become a $2 billion industry over the next couple of years.

In addition to the capital investment, Pete Perrone, managing director at Goldman Sachs, will join the AppSense board of directors. 
“With the increased mobility of the workforce and the need to be able to access information from any device, Goldman Sachs sees a clear demand for user virtualization solutions that span multiple desktop delivery methods,” said Perrone. “AppSense’s strong customer traction, history of innovative solutions in desktop computing, and the record growth it has experienced over the past two years further solidified our decision to invest in the company.”

I think it is fair to assume that the investment will raise many questions within the community, so I would like to take this opportunity to address and answer some of the questions I expect you might have:

So, why have Goldman Sachs invested in AppSense?
Goldman Sachs recognizes the market opportunity in user virtualization and also recognizes AppSense as the leader in this space.  AppSense has market leading technology, a broad portfolio of blue-chip customers, an extensive partner network and endorsement across the industry analyst and market space.  The potential of the user virtualization opportunity is further backed up by Goldman’s own market research in this area, and Goldman saw a clear opportunity to invest in a company that has the proven management and infrastructure to grow significantly over the next coming years.

Why did AppSense take outside investment?
AppSense are highly profitable, financially stable and have to date taken no external investment.  However, with the user virtualization market now shifting to a multi-billion dollar opportunity, AppSense has partnered with Goldman Sachs in order to take full advantage of their leadership position in this space.  AppSense is already rapidly expanding in terms of infrastructure, operations, global geos, technology, sales and marketing.  The investment from Goldman Sachs facilitates this growth and assists AppSense in industry partnerships and networks during this significant acceleration period.  The investment will enable faster expansion into new territories where demand for AppSense technologies is exceeding supply.

What percentage of AppSense did Goldman Sachs receive for the $70m investment?
We are unable to disclose such confidential, all that I can say is that the $70m investment is in exchange for a minority share in AppSense.

What are the market drivers taking User Virtualization to $2 Billion ?
To name but a few, i have listed 3 key drivers below:

•Consumerization and proliferation of devices; UV enables a seamless user experiences cross device, cross-platform and enables IT to manage the user independently of the device or platform
•With large complex IT projects, such as Windows 7, if you remove the user component, the job is significantly cheaper, quicker and easier
•Explosion of desktop and application virtualization; virtualize the user first, better results will be achieved

I have also put together a couple of key points highlighting the need for UV to take away from this move:

Change is happening – there is a fundamental shift moving from desktop & infrastructure computing to IT as a Service.
This shift promises lower cost, more agility, more security – but user issues delay the projects that take you there (migration, app and desktop virt, SaaS,  mobility etc).  You must unlock these projects in order to progress.  Most companies focus on device and desktop mgt.  As more devices (on average 3 per user today) continue to increase, managing individual devices becomes impossible.  Why?  Because the unique nature of the user is intimately tied to these devices and desktops.

User Based Computing is the only way forward – eliminating device based problems.  User virtualization – Decouple.  Manage.  Deploy!
Remove the burden of per-device, per-desktop mgt and manage per-user instead.  This will unlock your stalled projects, empower users to use devices they need and ensure a seamless, personal user experience.  Decouple ALL aspects of the user from ALL your desktops; manage this ‘personality’ independent of the desktop and device; and deploy it across any platform and device on-demand.  This is user virtualization and this is what will transition your org to a user-centric model for the desktop estate.

AppSense – the proven leader in User Virtualization.
AppSense has been providing solutions to manage the user experience for many years.  As the leaders in this space, we have an enterprise class, tried and tested platform that manages every aspect of the user, with extensive user policy management capabilities, and a robust and secure infrastructure to deploy user personalities around the world; across any platform,  any desktop and app delivery mechanism, any device and context.  With the investment from Goldman Sachs, the solution will continue to develop at a market leading rate, and will be deployed to even more of the worlds largest, complex and demanding computing environments.

The Goldman Sachs investment is a significant move, coupled with recent news from AppSense such as 140k user project wins, record revenues, Citrix Partner of the Year and recruitment of industry leaders such as Dr. Benny Tritsch, Richard Jackson, David Roussain amongst others, this all makes AppSense and User Virtualization a topic frequently reported on in leading publications – read more about the investment from an independent perspective via the following:

The investment made US Breakfast TV Headline on CNBC this morning (Wednesday 23rd Feb 2011) being covered by Kayla Tausche (Twitter: @kaylatausche )  as per below: 

CNBC Video – Goldman’s Big VC Move

You can read about the investment via the below:

Bloomberg – Goldman Sachs Boosts Web Wager With $70 Million AppSense Stake

The Financial Times – Goldman invests $70m in UK software group

The Guardian – Goldman Sachs invests in UK software firm

Manchester Evening News – Goldman Sachs invests in AppSense

Tech Crunch – Goldman Sachs pumps a whopping $70m into Virtualization company AppSense

Virtualization Journal – Piece of AppSense Goes to Goldman for $70 Million

CRN Channel Web – AppSense bags $70m lolly from Goldman Sachs


Many thanks to everyone involved both internally and externally – appreciate your continued support!


7 Responses to Goldman Sachs invests $70m for minority share in User Virtualization leader, AppSense

  1. […] More information about the investment is available on AppSense’s blog. […]

  2. […] But there is another interesting one, which was announced Wednesday: a $70 million minority stake in AppSense. […]

  3. […] More information about the investment is available on AppSense’s blog. […]

  4. […] More information about the investment is available on AppSense’s blog. […]

  5. […] Goldman Sachs invests $70m for minority share in User … […]

  6. […] currently on track for achieving a $100m year (and no, that doesn’t include recognizing the $70m investment from Goldman Sachs as revenue haha ;)  ) and aims to float on the NASDAQ,  Charlie commented after winning the […]

  7. […] believes that the user virtualization market will be worth $2 billion in the next few years. For now, the company seems to be taking the right steps to make bigger inroads into this […]

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