Citrix 2012 Annual Report Download - page 13

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9
Additional Relationships
Over the past year, our partners have expanded their focus on the broad range of Citrix products. Some examples include
Alcatel-Lucent, who OEMs Citrix CloudPlatform as a part of their CloudBand solution, and Dell who OEMs VDI-in-a-box as
an appliance, called DVS-Simplified, and XenDesktop, called DVS-Enterprise. HP, IBM and Fujitsu also have multiple
offerings in the market with XenDesktop. Announced in 2012, Amazon now re-sells Citrix NetScaler and Citrix CloudBridge in
its Advanced Web Services, or AWS, Marketplace.
Through our Citrix Ready program, more than 21,000 products have been verified to work with Citrix technologies. In
addition, numerous partners proactively incorporate Citrix products and technologies such as Receiver, XenServer,
XenDesktop, XenClient, XenApp, NetScaler, CloudGateway, VDI-in-a-Box and HDX (ICA) technology into their customer
offerings. Our HDX and Receiver technologies are often included with or offered for thin clients, industry-standard servers and
mobile devices, such as Apple's iPhone and iPad, Windows Mobile, Blackberry and Google Android devices. Licensees include
Dell, Fujitsu and Hewlett Packard, among others. Our XenClient technology was developed in cooperation with Intel and is
licensed for shipment by desktop computer manufacturers, including Dell and Hewlett Packard.
Research and Development
We focus our research and development efforts on developing new products and core technologies in our core markets
and to 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 Extensible Markup Language, or XML, based software development, integration of acquired technology, multi-tier
Web-based application development and deployment, SSL secure access, hypervisor technologies, cloud technologies,
networking technologies, VoIP-based audio technology, Web-based video technology and building SaaS. We incurred research
and development expenses of approximately $450.6 million in 2012, $380.7 million in 2011 and $361.4 million in 2010. In
addition to internal research and development, Citrix also supports an eco-system of early stage companies via our Startup
Accelerator program which provides seed capital for new technologies.
Sales, Marketing and Services
We market and license our products and services through multiple channels worldwide, including Value-Added Resellers
known as Citrix Solution Advisors™, VADs, Service Providers, SIs, Independent Software Vendors (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 Solution Advisors, integrators, and consultants for the full-range of Citrix products, solutions and
services through our Citrix Partner Network. In addition, our Online Services division provides Enterprise SaaS offerings
through direct corporate sales, Solution Advisors, and direct over-the-Web through our websites.
In 2012, 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. In 2012, we offered additional Advisor Rewards incentives to increase
partner mindshare, limit channel conflict and increase partner loyalty to us.
As Citrix continues to evolve as a cloud computing company enabling mobile workstyles, we have also been cultivating a
base of over 2,000 partners for XenDesktop and XenApp known as the Citrix Service Provider program. These partners
consume technology on a subscription basis in order to deliver IT Services to multiple corporate entities. Our Citrix Service
Provider channel is one of the fastest growing channels at Citrix today, and we see the demand increasing for these cloud-based
services as small and mid-sized businesses require an outsourced model for their IT.
For all of our channels, we regularly take actions to improve the effectiveness of our partner programs and strengthen our
channel relationships, including managing non-performing partners, adding new partners with expertise in selling into new
markets and forming additional strategic global and national partnerships. SI and ISV engagement continues to be a substantial
part of our strategy in the large enterprise and government markets. The SI program includes organizations such as Accenture,
Atos Origin, Computer Sciences Corporation, Dimension Data, Hewlett Packard, Fujitsu, IBM Global Services, Wipro 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