Citrix 2009 Annual Report Download - page 18

verifications. The Citrix Ready designation is awarded to third party products that have successfully met
verification criteria set by Citrix, and gives customers an added confidence in the compatibility of the joint
solution offering. The Citrix Ready program received the Alliance Excellence Award from the Association of
Strategic Alliance Professionals (ASAP) for creating a strong community of alliances through implementation
of new, innovative best practices.
Research and Development
We focus our research and development efforts on developing new products and core technologies in the
virtual computing infrastructure market and further enhancing the functionality, reliability, performance and
flexibility of existing products. We solicit extensive feedback concerning product development from customers,
both directly from and indirectly through our channel distributors.
We believe that our software development teams and core technologies represent a significant competitive
advantage for us. Included in the software development teams is a group focused on research activities that
include prototyping ways to integrate emerging technologies and standards into our product offerings, such as
emerging Web services technologies, management standards and Microsoft’s newest technologies. Many groups
within the software development teams have expertise in XML-based software development, integration of
acquired technology, multi-tier Web-based application development and deployment, SSL secure access,
hypervisor technologies, VoIP-based audio technology, Web-based video technology and building software as a
service. We maintain teams located close to Microsoft in Redmond, Washington which are focused on enhancing
and adding value to the next generation of Microsoft Windows Server, virtualization and management products.
We incurred research and development expenses of approximately $282.0 million in 2009, $288.1 million in
2008 and $205.1 million in 2007.
Sales, Marketing and Services
We market and license our products and services through multiple channels worldwide, including VARs,
VADs, SIs, ISVs, direct over-the-web, and OEMs. These distribution channels are managed by our worldwide
sales and services organization. We provide training and certification to integrators, VARs and consultants for
a full-range of Citrix-based infrastructure products, solutions and services through our Citrix Partner Network
program to members known as Citrix Solution Advisors™. In addition, our Online Services division provides
software as a service through direct corporate sales and direct over-the-web through our Websites.
In 2009, we continued to focus on increasing the productivity of our existing partners and building capacity
through recruitment of new partners to sell and implement our expanding product portfolio. Our channel
incentive program, Citrix Advisor Rewards™, is an innovative influencer program that rewards our partners for
registering projects and providing value-added selling even if they do not fulfill the product. This program has
helped limit channel conflict and increase partner loyalty to us. We regularly take actions to improve the
effectiveness of our partner programs, and to strengthen our channel relationships, including managing
non-performing partners, adding new partners with expertise in selling into new markets, and forming additional
relationships with global and regional SIs and ISVs. SIs and ISVs are becoming a more substantial part of our
strategy in the large enterprise and government markets. The SI program includes members such as Accenture
Ltd., Atos Origin, Computer Sciences Corporation, Electronic Data Systems Corporation, Fujitsu-Siemens
Computers GmbH, Hewlett-Packard Company, IBM Global Services, Infosys Technologies Limited and TATA
Consultancy Services Limited, among others. The ISV program has a strong representation from targeted
industry verticals such as healthcare, financial services and telecommunications. Members in the ISV program
include Cerner Corporation, Epic Systems Corporation, ESRI, McKesson Corporation, Microsoft, Oracle
Corporation, Sage Group plc, SAP AG and Siemens Medical Health Solutions, among many others.
Our corporate marketing organization provides sales event support, sales collateral, advertising, direct mail
and public relations coverage to our indirect channels to aid in market development and in attracting new
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