Citrix 2007 Annual Report Download - page 14

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In October 2007, in conjunction with the acquisition of XenSource, we acquired commercial hypervisor
products built on the Xen®open source technology. The Xen®hypervisor is a key component of the Citrix®
XenServer™ product line. See “Risk Factors,” for more information regarding the open source technology.
Customers
We take a unique and holistic approach to solving application delivery problems, and we equip businesses to
change—on-demand. We do this through an expansive product portfolio that brings enormous benefits and cost
savings to our customers. The strategic value that we offer brings multiple buyers to the table, each with a
different perspective on the problems we solve. We believe that currently, the five primary IT buyers involved in
decision-making related to application delivery solutions are:
• Strategic IT Executives—the senior executives, including chief information officers, chief technology
officers and vice presidents of infrastructure, who have responsibility for ensuring all applications are
delivered with the best performance, security and cost-savings.
• Network Architects—the people and groups responsible for delivering Web-based applications who
have primary responsibility for the WAN infrastructure for all applications.
• IT Infrastructure Managers—the people and groups responsible for delivering Windows-based
applications.
• Desktop Operations Managers—the people and groups responsible for managing Windows Desktop
environments.
• Server Operations Managers—the people and groups responsible for managing the datacenter.
In addition to these five primary IT buyers, we market and sell access and collaboration software and
services to consumers, prosumers and small businesses through our Online Services division. Our Online
Services division also markets and sells Web-based remote support systems to corporate help desks.
We offer perpetual and term-based software licenses for our Delivery Systems and Virtualization and
Management Systems products, along with annual subscriptions for software maintenance, technical support and
online services. Perpetual licenses allow our customers to use the version of software initially purchased into
perpetuity while term-based licenses are limited to a specified period of time. Software maintenance gives
customers the right to upgrade to software versions if and when any updates are delivered during the maintenance
term. Perpetual license software products come in shrink-wrap and/or electronic-based forms to meet customer form
factor requirements. Our Online Services products can be accessed over the Internet during the subscription period.
Hardware appliances come pre-loaded with software for which customers can purchase perpetual licenses.
Technology Relationships
We have entered into a number of technology relationships to develop customer markets for our products
for distributed Windows and non-Windows applications and to accelerate the development of our existing and
future product lines.
Microsoft
Since our inception, we have had a number of license agreements with Microsoft, including licenses relating
to Microsoft OS/2, Windows 3.x, Windows for Workgroups, Windows NT®, Windows CE and Internet
Explorer. These agreements have provided us with access to certain Microsoft source and object code, technical
support and other materials. We also have licensed our multi-user Windows NT extensions to Microsoft for
inclusion in Microsoft’s NT Terminal Server, Windows 2000 Server and successor products.
In December 2004, we entered into a technology collaboration agreement with Microsoft to further enhance
the overall extensibility of Windows® Terminal Server. In conjunction with the technology collaboration
8