Citrix 2007 Annual Report Download - page 4

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2Citrix Systems, Inc. J2007 Annual Report
Within our application virtualization product line, we introduced a new version of our  agship product,
Presentation Server 4.5, with valuable new features that rede ned the state-of-the-art of Windows®
application delivery.  is also included the launch of a brand new “Platinum Edition” of Presentation Server
– incorporating Citrix Access Gateway, Password Manager and EdgeSight technologies – o ering our most
strategic customers a comprehensive “end-to-end” system. Revenue from this product far exceeded our
expectations, amounting to 20% of our product revenue in application virtualization.
Our application networking products, led by the NetScaler product line, grew 42% to over $150 million.
NetScaler 8.0 – introduced mid-year – is the  rst web application delivery controller in the industry to
integrate web application  rewall, SSL VPN and end-user experience monitoring to improve the delivery
of today’s increasingly complex web applications. We also launched a new “Platinum Edition” of NetScaler,
creating an even more robust solution for enterprise web applications.  e Citrix Access Gateway and
WANScaler product lines were enhanced to improve our competitive positions in those markets and to
support the Platinum Edition packaging strategy.
In 2007, our Online Services products – GoToMyPC, GoToAssist, and GoToMeeting – were all upgraded,
to give customers more value and to actively support subscription renewals.  ese products contributed
$214 million in revenue and placed us in the top  ve So ware-as-a-Service (SaaS) providers in the world.
Our “online virtualization platform” hosted over 100 million user sessions in 2007, including almost 90%
growth in GoToMeeting attendees. To support this growth, we began the build-out of significant
infrastructure to seamlessly handle more online virtualization sessions, to extend our footprint to new
geographic markets, and to improve the experience our customers have every time we touch them.
Acquisitions have played an important role in our strategy to establish Citrix as the leading provider of
application delivery infrastructure. In 2007, the pace increased. We made a number of smaller “tuck in”
purchases designed to enhance a number of our existing product lines.  ere were also two strategic
acquisitions in 2007, moving us into the mainstream of the fast-growing server and desktop virtualization
markets, expanding our addressable market by over $2 billion.
First was the acquisition of Ardence, adding talent, intellectual property, and products for on-demand
provisioning of server workloads and desktop operating systems.  ese technologies can dramatically
reduce computing costs and improve information security. In the fourth quarter, we released Citrix
Provisioning Server – built on Ardence technologies – enabling server workloads and Windows desktops
to be virtualized on network storage and streamed on-demand to x86 servers or PCs.
As we listened to customers and partners, and looked at our plans to prepare them for a more dynamic
world, it became clear we needed to own core technology and competency in the broader virtualization
space. We heard their desire for more choices – speci cally for non-proprietary, easy-to-use server
virtualization solutions that are optimized to work best on the Microso Windows platform.
 e result was the acquisition of XenSource – the leading provider of virtualization infrastructure based
on the open source Xen hypervisor.  is gives us very important core technology, strategic products and
talented people in server virtualization.  e acquisition is enhancing our desktop virtualization product –
XenDesktop – and it will be a valuable asset across other Citrix product lines as an underlying technology.
And, it has also put a new spotlight on Citrix, illuminating our entire product portfolio in exciting ways.