Citrix 2013 Annual Report Download - page 13

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9
payments to or from Microsoft. Our two companies have a long-standing go-to-market partnership, and that continues to grow
as we introduce more joint solutions in new areas such as XenDeskop on Azure.
Cisco
We have a technology collaboration with Cisco Systems, Inc., or Cisco, to develop and deliver solutions that help
customers simplify and accelerate large-scale desktop virtualization deployments, including high-definition virtual desktops
and applications and improved end-user experiences, over a highly secure Citrix® HDX-enabled Cisco network. We license the
specifications of ICA® to Cisco as part of this agreement.
In October 2012, Cisco and Citrix announced an expanded relationship in three strategic areas: cloud networking, cloud
orchestration and mobile workstyles. In 2013, we delivered solutions in all three areas. Cisco introduced an OEM version of
our Netscaler Application Delivery Controller technology, called Citrix Netscaler 1000V, which is sold as a part of their Cloud
Virtual Network Services architecture platform. We are also delivering tight integration between appliance versions of Citrix
NetScaler and Cisco’s higher end Nexus 7000 product line. Also announced by Cisco this year is a new joint Desktop as a
Service solution offering targeted at service provider companies.
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 XenDesktop, for
their DVS-Enterprise solution. HP, IBM and Fujitsu also have multiple offerings in the market with XenDesktop, XenMobile
and NetScaler. We have also built relationships with NetApp and CA Technologies that complement the benefits provided by
Citrix XenServer, XenDesktop, XenApp and CloudPlatform. Amazon now re-sells Citrix NetScaler, Citrix CloudBridge, and
Citrix XenMobile in its Amazon Web Services, or AWS Marketplace, and we collaborate to allow customers to run
XenDesktop on the AWS platform.
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, and HDX (ICA) technologies 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,
Samsung, Fujitsu and Hewlett Packard, among others.
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 $516.3 million in 2013, $450.6 million in 2012 and $380.7 million in 2011. 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 thousands of Value-
Added Resellers known as Citrix Solution Advisors™, Value-Added Distributors, hosted Service Providers, System Integrators,
or SIs, Independent Software Vendors, or ISVs, direct over-the-Web and OEMs. These distribution channels are managed by
our worldwide sales and services organization. We provide training and certification opportunities to our channel partners and
consultants for the full-range of Citrix products, solutions and services through our Citrix Partner Network. In addition, our
SaaS division provides our collaboration and data sharing offerings through direct corporate sales, Solution Advisors, and direct
over-the-Web through our websites.
In 2013, we made global partner program changes to help Solution Advisors develop new opportunities and
specializations, engage at a deeper level with customers and lead in mobile workstyle solutions and cloud services. The changes
included: differentiated Citrix Advisor Rewards by partner level; Citrix Opportunity Registration discounts for cloud