Citrix 2009 Annual Report Download - page 25

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performance monitoring, branch office application delivery and WAN optimization, virtual desktop delivery,
secure sockets layers/virtual private network, gateways, on-demand assistance, online collaboration and IP
telephony, can materially impact our ability to compete in these markets.
Our current principal competitors in these markets include Cisco, including Cisco’s WebEx division, F5,
Juniper, Riverbed, VMware, Microsoft, Blue Coat and LogMeIn. For further discussion of the competitive
environment for our products, see the section entitled “Competition” in Part 1—Item 1.
As the markets for our products and services continue to develop, additional companies, including
companies with significant market presence in the computer appliances, software and networking industries,
could enter the markets in which we compete and further intensify competition. In addition, we believe price
competition could become a more significant competitive factor in the future. As a result, we may not be able to
maintain our historic prices and margins, which could adversely affect our business, results of operations and
financial condition.
Sales of our Desktop Solutions constitute a majority of our revenue and decreases in demand for our Desktop
Solutions could adversely affect our results of operations and financial condition.
We anticipate that sales of our Desktop Solutions and related enhancements and upgrades will constitute a
majority of our revenue for the foreseeable future. Our ability to continue to generate revenue from our Desktop
Solutions will depend on market acceptance of Windows Server Operating Systems and/or UNIX Operating
Systems. Declines and variability in demand for our Desktop Solutions could occur as a result of:
• new competitive product releases and updates to existing products;
• termination of our product offerings and enhancements;
• potential market saturation;
• technological change;
• general economic conditions; or
• lack of success of entities with which we have a technology relationship.
If our customers do not continue to purchase our Desktop Solutions as a result of these or other factors, our
revenue would decrease and our results of operations and financial condition would be adversely affected. In
addition, modification or termination of certain of our Desktop Solutions may cause variability in our revenue
and make it difficult to predict our revenue growth and trends in our Desktop Solutions as our customers adjust
their purchasing decisions in response to such events.
Our XenDesktop products are based on an emerging technology platform, and the market for this line of
products remains uncertain.
Our XenDesktop products and services are based on an emerging technology platform, the success of which
will depend on organizations and customers perceiving technological and operational benefits and cost savings
associated with adopting desktop virtualization solutions. The limited extent to which XenDesktop has been
adopted in the market may make it difficult to evaluate this product’s potential impact on our business because
the market for our XenDesktop products remains uncertain. For example, our primary competition in desktop
virtualization is the existing IT practice of managing physical desktops as a device. To some extent, the success
of our XenDesktop product will depend on IT executives rethinking how desktops can be delivered as a service
rather than viewing desktops as a device. To the extent that the adoption of desktop virtualization solutions occur
more slowly or less comprehensively than we expect, the revenue growth associated with our XenDesktop
products may be slower than currently expected, which could adversely affect our business, results of operations
and financial condition.
17