Hardware manufacturer Dell last week announced its intention to acquire systems management appliance vendor KACE, in a move that analysts say will strengthen its offering to small and medium sized businesses.

KACE’s flagship product is K-BOX, an appliance that contains software to manage PCs, laptops and servers. According to analyst company the 451 Group, Dell will use the acquisition to bolster its SMB division, offering systems management functionality to organisations with up to 5,000 devices.

In 2007, Dell acquired two software-as-a-service systems management vendors, SilverBack and Everdream, both of which serve a similar market. But KACE’s technology will help Dell sell to customers that require on-premise systems, the 451 Group said.

The financial terms of the deal were not disclosed.