Citrix 2007 Annual Report Download - page 16

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 team have expertise in XML-based software development, integration of
acquired technology, multi-tier Web-based application development and deployment, SSL secure access and
building software as a service. We maintain a team working on-site at Microsoft focused on enhancing and
adding value to the next generation of Microsoft Windows Server, virtualization and management products. We
incurred research and development expenses of approximately $205.1 million in 2007, $155.3 million in 2006
and $108.8 million in 2005.
Sales, Marketing and Support
We market and license our products and services primarily through multiple channels worldwide, including
VARs, channel distributors, SIs and ISVs managed by our worldwide sales force. We provide training and
certification to integrators, VARs and consultants for a full-range of Citrix-based infrastructure products,
solutions and services through our Citrix Partner Network. In addition, our Online Services division provides
software as a service through direct sales and our Websites.
In 2007, we continued to focus our efforts on increasing the productivity of our existing partners, integrating
partners from our recent acquisitions into our program, and building capacity through recruitment of new
partners to sell and implement our expanding product portfolio, including an effort to recruit partners to sell and
implement XenServer, our server virtualization product. We continue to see success with our innovative channel
incentive program, Citrix Advisor Rewards. The Citrix Advisor Rewards™ program 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. This program has helped limit channel conflict and increase partner loyalty to us. We
regularly take actions to improve the effectiveness of our partner programs, and to strengthen our channel
relationships, including managing non-performing partners, adding new partners with expertise in selling into
new markets, and forming additional relationships with global and regional SIs and ISVs. SIs and ISVs are
becoming a more central part of our strategy in the large enterprise and government markets. The SI program
includes members such as Accenture Ltd., Atos Origin, Computer Sciences Corporation, Electronic Data
Systems Corporation, Fujitsu-Siemens Computers GmbH, Hewlett-Packard Company, IBM Global Services,
Infosys Technologies Limited, TATA Consultancy Services Limited and WiPro Technologies 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 Corporation, Epic Systems
Corporation, ESRI, Hyperion Solutions Corporation, McKesson Corporation, Microsoft, Oracle Corporation,
Sage Group plc, SAP AG and Siemens Medical Health Solutions, among many others.
Our sales and marketing organization actively supports our distributors and resellers. Our sales organization
consists of field-based systems sales engineers and corporate sales professionals. Additional sales personnel,
based all over the world support these field personnel. These additional sales personnel recruit prospective
customers, provide technical advice with respect to our products and work closely with key distributors and
resellers of our products. Over the last five years, we have grown our force of sales professionals that work
closely with partners to sell to primary IT buyers, including Strategic IT Executives, Network Architects, IT
Infrastructure Managers, Desktop Operations Managers and Server Operations Managers to address the multiple
selling and buying opportunities presented by our expanded product line. These and other account penetration
efforts are part of our strategy to increase the usage of our Citrix Delivery Center products within our customer’s
IT organization.
Our marketing department provides training, sales event support, sales collateral, advertising, direct mail
and public relations coverage to our indirect channels to aid in market development and in attracting new
customers. In addition, marketing for our Online Services division utilizes multiple venues including radio,
television and online advertising.
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