Citrix 2009 Annual Report Download - page 43

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Overview
We design, develop and market technology solutions that enable IT services to be securely delivered on
demand – independent of location, device or network – powered by Citrix virtual computing infrastructure. Our
customers achieve lower IT operating costs, increased information security, and greater business agility using Citrix
technologies that virtualize business meetings, user support, client hardware, desktop operating systems,
applications, networks, server hardware and cloud services. We market and license our products directly to
enterprise customers, over the web, and through systems integrators, or SIs, in addition to indirectly through value-
added resellers, or VARs, value-added distributors, or VADs, and original equipment manufacturers, or OEMs.
Executive Summary
Our solutions can fundamentally change an information technology organization’s approach and strategic
value, transforming information technology, or IT, into an on-demand service by centralizing the delivery of
applications and desktops. Further, this approach to IT transforms data centers, making them far more flexible to
adapt to the changing needs of an enterprise.
We believe our approach is unique in the market because we have combined innovative technologies in the
area of desktop management, including but not limited to desktop virtualization and application virtualization,
marketed as our Desktop Solutions, and server virtualization, application networking and optimization, marketed
as our Datacenter and Cloud Solutions, to deliver the most comprehensive end-to-end application delivery
solution, and one that, when considered as a whole, is competitively differentiated by its feature set and
interoperability.
The global recession that started in 2008 impacted IT spending, and we see the uncertainties that remain in
today’s economic environment continuing to impact IT spending, but to a lesser extent than in early 2009. We
expect that we will continue to see many IT projects delayed, scaled back or re-evaluated. The overall uncertainty
in the global economy has adversely affected, and may continue to negatively impact, sales of our products and
may result in longer sales cycles, slower adoption of technologies and increased price competition.
At the same time, however, this environment puts a much sharper focus on IT products and services that can
reduce cost and deliver quick, tangible return on investment, or ROI. With our customers focused on economic
value in technology solutions, we intend to continue highlighting our solutions’ abilities to reduce IT costs,
increase business flexibility and deliver ROI.
Further, we are seeing increased interest in desktop virtualization. XenApp and XenDesktop, for example,
can reduce the cost of traditional desktop management by virtualizing the desktop and applications in a
customer’s datacenter, where they are more easily and efficiently maintained. XenServer and NetScaler can alter
the traditional economies of the datacenter by providing much greater levels of flexibility of computing
resources, especially with respect to servers, by improving application performance and thereby reducing the
amount of processing power involved, and allowing easy reconfiguration of servers for multiple purposes. Our
Online Services product group is focused on developing and marketing Web-based access, support and
collaboration software and services. These products are primarily marketed via the Web to individuals,
prosumers and small businesses. Our real-time collaboration products from our Online Services division offer
secure and cost-effective solutions that allow users to host and actively participate in online meetings, webinars
and training sessions remotely and reduce costs associated with business travel. Our Web-based access solution
offers a secure, simple and cost efficient way for users to access their desktops remotely.
Further, we will endeavor to sustain the long-term growth of our businesses and enhance our current
solutions through technological innovation, engineering excellence, selective and strategic acquisition of
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