Citrix 2012 Annual Report Download - page 35

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31
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
Overview
Citrix is a cloud computing company that enables mobile workstyles- empowering people to work and collaborate from
anywhere, accessing enterprise apps and data on any of the latest devices, as easily as they would in their own office- simply
and securely. Citrix cloud computing solutions help IT and service providers build both private and public clouds, leveraging
virtualization and networking technologies to deliver high-performance, elastic and cost-effective services for mobile
workstyles.
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.
Citrix is a Delaware corporation founded on April 17, 1989.
Executive Summary
We believe our approach is unique in the market because we have combined innovative technologies to enable and power
mobile workstyles. Our technologies mobilize desktops, apps, workloads and people to help our customers drive business
value. Our Mobile and Desktop products are leaders in the area of desktop management, including Desktop Virtualization
marketed as XenDesktop and XenApp. In addition, in January of 2013, we acquired Zenprise, Inc., or Zenprise, and its mobile
device management, or MDM, products, which will be integrated with our Citrix CloudGateway product offering to provide
customers a complete solution for mobile enterprise management. Our Networking and Cloud products offer customers a
value-added approach to building and delivering IT to end-users, including our Cloud Networking products, which allow our
customers to deliver services to mobile users with high performance, security and reliability, and our Cloud Platform products,
which allow our customers to build scalable and reliable private and public cloud computing environments. We believe this
combination of products allows us to deliver a comprehensive end-to-end mobile lifestyles solution, and one that we believe,
when considered as a whole, is competitively differentiated by its feature set and interoperability.
In today’s business environment there is a sharp focus on IT products and services that can reduce cost and deliver a
quick, tangible return on investment, or ROI. With our customers focused on economic value in technology solutions, we
continue highlighting our products’ abilities to reduce IT costs, increase business flexibility and deliver ROI with a simpler
more flexible approach to computing.
In 2011, we saw uncertainties surrounding IT spending, particularly in the European markets. Through the third quarter
of 2012, we continued to encounter hesitancy on the part of customers in initiating large capital projects causing opportunities
to be pushed into the future or to be split into smaller transactions. In the fourth quarter of 2012, we saw improvements in
demand across all geographies, which contributed to our overall Product and license revenue growth. See our Summary of
Results section below.
Although we experienced greater demand in the fourth quarter of 2012, we believe that continued economic uncertainty
may adversely affect sales of our products and services and may result in longer sales cycles, slower adoption of technologies
and increased price competition, particularly in North America and Europe.
In 2013, we plan to focus on helping our customers embrace and power mobile workstyles and build cloud infrastructure
so cloud services can be delivered virtually anywhere with a high quality user experience. We plan to sustain the long-term
growth of our businesses around the world by expanding our go-to-market reach and direct customer touch through hiring
additional enterprise account managers and expanding consulting and technical support capacity; investing in product
innovation, bringing new technologies to market and improving integration across our product portfolio to drive simplicity and
better end-user experience; and making selective and strategic acquisitions of technology, talent and/or businesses. We also
plan to invest in new service provider channel programs that allow our partners to upgrade their capabilities in desktop
virtualization, giving us more capacity to drive strategic Mobile and Desktop transactions and to cross-sell Cloud Networking,
Cloud Platforms, Collaboration and Data Sharing.
Enterprise division
Our Desktop Virtualization products are built to transform and reduce the cost of traditional desktop management by
virtualizing the desktop, with our XenDesktop product, and virtualizing applications, with our XenApp product, in a customer’s
datacenter. We are moving the delivery of desktops and related applications to an on-demand service rather than the delivery of
a device. We continue to see growing customer interest in XenDesktop and, in addition, by making the XenDesktop trade-up
program a standard program, we are maximizing our XenApp install base and driving continued XenDesktop adoption.