Citrix Systems takes connectivity to the next level. The company makes network access devices and software designed to enable PCs, IP phones, smartphones, and other devices to remotely and securely access applications across wired and wireless networks, freeing customers from the difficult and costly task of installing and updating software on each piece of hardware. Its product line includes application virtualization software (XenDesktop), network access devices (NetScaler), cloud computing connectivity and aggregation applications (CloudStack), and online meeting software (GoToMeeting). Citrix also offers managed online services for meetings and presentations, technical support, and remote desktop access.
Citrix divides its business into two reportable segments: Enterprise (primarily consisting of desktop, data center, and cloud products) and Online Services (consisting of Web collaboration, remote access, and support services).
The company maintains control of all purchasing, inventory, order processing, and accounting functions. It employs independent contractors, such as Flextronics, HP, and Super Micro Computer, for manufacturing of certain products, which allows for better flexibility in meeting customer and delivery requirements.
Citrix also maintains a number of technology collaborations and licensing agreements with the likes of Microsoft and Cisco to speed up the development of existing and pipeline products.
Sales and Marketing
Citrix markets and licenses its products and services through multiple channels worldwide, among them value-added resellers (VARs), independent software vendors (ISVs), direct through the Web, and original equipment manufacturers (OEMs). These distribution channels are managed by Citrix's global sales and services organizations, which provide training and certification to integrators, VARs, and consultants for products and services. One distributor, Ingram Micro, accounted for 17% of Citrix's net revenues in fiscal 2011.
Its products and services are geared toward customers of all sizes, including consumers who subscribe to its GoToMyPC remote access service (remote access), network engineers who purchase its NetScaler Web application devices (cloud networking), and IT professionals who license its XenDesktop infrastructure products (desktop virtualization). Citrix targets such customers as CIOs, desktop operations managers, IT infrastructure managers, network architects, and server operations managers, as well as small business and individuals. Key enterprise clients have included Deutsche Bank, KT Corporation, and Royal Bank of Scotland.
Citrix saw its revenue grow for the ninth consecutive year in fiscal 2011, while net income rose for the third straight year. The company cited increased sales of its data center and cloud computing-related products, particularly NetScaler, as well as desktop virtualization applications such as XenDesktop, as key sales drivers. Despite higher operating expenses for the year, Citrix improved its profit margin in 2011 due to restructuring efforts the previous year that included layoffs.
Citrix continues to introduce new versions of its products to address new market niches. In 2010 the company expanded its online collaboration and meeting product line with an application called GoToManage that targets the IT management market. Based on technology Citrix acquired when it purchased Paglo Labs, GoToManage provides a Web-based platform to monitor, control, and support IT assets such as desktops, mainframes, and servers.
Mergers and Acquisitions
The company regularly uses acquisitions to broaden its product line and expand into complementary markets. In early 2013 it acquired Redwood City, California-based mobile device management (MDM) leader Zenprise. Citrix plans to integrate Zenprise with its own products to form a single, integrated enterprise product line for managing mobile devices, apps, and data.
Earlier in 2012 Citrix bought privately held Podio, a developer of cloud-based collaboration applications. The acquisition was made to enhance the company's "GoTo" range of cloud products. The same year Citrix also bought online IT service desk technology provider Beetil, another purchase that expands its growing portfolio of cloud-based applications. Also in 2012 Citrix acquired Bytemobile, a global provider of data and video optimization applications for functions such as content caching, policy control, mobile analytics, and traffic management.
In 2011 Citrix bought Germany-based software-as-a-service (SaaS) provider Netviewer to expand its online services presence in Europe. Netviewer served clients in a range of industries in Austria, the Benelux region, France, Germany, Italy and Spain, Switzerland, and the UK. Citrix also bought Kaviza and RingCube in 2011, adding desktop virtualization technology that complemented its XenDesktop product line.
Additionally, Citrix acquired open source software developer Cloud.com that year to address the growing market for cloud-based computing services. Cloud.com specialized in applications used to build, deploy, and manage multi-tier and multi-tenant cloud software systems. In 2011 the company also bought ShareFile, a developer of software that enables businesses to securely transmit large files via the Web, that competed with Dropbox, Box.net, and YouSendIt.
In 2010 Citrix paid $13.2 million to acquire VMLogix, which provided virtualization management for private and public cloud, or SaaS, providers. The purchase added lifecycle management capabilities to the company's new OpenCloud infrastructure platform, which enables cloud providers to offer their own infrastructure services, as well as an interface that gives end users the ability to manage their on-premise virtual resources in private cloud environments.