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Citrix Systems, Inc. 2006 Annual Report 5
Application Networking
As applications accelerate their move to
the Web and as end users become more
geographically dispersed, customers need
even more control over the security, perfor-
mance and cost of application delivery.  is
has driven our investments to aggressively
enter the adjacent, fast-growing Application
Networking market. With our highly respected
Citrix NetScaler o ering, our market-leading
Citrix Access Gateway SSL VPN line of
products, and our recently introduced Citrix
WANScaler products, we are positioned to
continue gaining market share in this space.
Our NetScaler Web application delivery appli-
ances are powering the most business-critical
applications on the Web today, helping Google,
Yahoo, eBay, Amazon, MySpace and many
others maintain the security, performance
and cost-e ciency they need. In fact, we
estimate that over 75% of Internet users pass
through a Citrix NetScaler system every
day. Our Access Gateway product line secures
the point of access to applications of any
type—Web or Windows. In just two years,
Access Gateway has rapidly grown to an
industry-leading position in SSL VPN market
share.  e recent introduction of Citrix
WANScaler moves us into the rapidly grow-
ing market of WAN optimization. WANScaler
products will bene t our customers with
branch offices and remote workforces by
accelerating application performance—
exponentially—across wide-area networks.
Application Networking product and services
revenue tripled in 2006, to over $109 million,
driven by early successes in Web application
delivery, SSL VPN, and WAN optimization
segments.  e application networking market
holds tremendous potential, and Citrix is at
the forefront.
Online Services
In 2004, we formed our Online Services
Division through a strategic acquisition,
broadening our portfolio into Web-based
application sharing and collaboration. It also
brought the talent and technology we need to
reach additional customer segments in a new
way—through so ware-as-a-service (SaaS).
At the time, the so ware landscape was
changing and we believed that eventually,
every enterprise so ware company would
need a competency in SaaS. Our online
services business has allowed us to build pow-
erful SaaS technical infra structure, to leverage
the business model of a subscription-type
service, and to get smarter about Web-based
customer acquisition.
In 2004, we started with two products and
a run-rate of roughly $44 million. Since then,
we’ve grown to four SaaS products and almost
$150 million in revenue.
Our most successful offering to-date,
GoToMeeting, is one of the fastest-growing
online collaboration solutions in the market
today. It provides a fast, easy, secure and
cost-e ective way to train, demonstrate, and
collaborate online. It leverages the same appli-
cation- sharing technologies and customer
acquisition model that’s made GoToAssist a
leading product in its market and
GoToMyPC products #1 in their markets.
In 2006, we launched a fourth product,
GoToWebinar that makes it easy for anyone
to demonstrate, train and present information
to large audiences over the Web. Historically,
online events have been complex processes, o en
involving 50 to 100 time-consuming steps.
GoToWebinar reduces it to three self-service
steps, making it simple to deliver a successful
webinar.
GoToWebinar is o to a very fast start and
shows how the core innovation in our SaaS
infrastructure is providing Citrix with a
platform for growth.