Citrix 2007 Annual Report Download - page 5

Citrix Systems, Inc. J2007 Annual Report 3
Collaborate.
Virtualization, application networking and collaboration technologies share one powerful capability –
they separate the physical from the logical. For example, a worker in Kansas City can share applications with
colleagues anywhere in the world over the internet – in real time. Financial institutions can securely centralize
mission critical applications and data while providing full access to branch banking employees. In the datacenter,
application workloads, like databases and web servers, can be stored separately from the server hardware that
runs them. Even Windows desktops can be separated from the PC and hosted in the datacenter or streamed
on-demand. We believe these technologies for separation of computing components are fundamental
ingredients for lowering computing costs and for dynamic application delivery.
Citrix now has the most complete vision, technologies, and product portfolio for delivering desktops and
applications from a dynamic server infrastructure. I like the position we’ve established – a position that I
believe is unmatched in the industry.
Growth Markets
Citrix is in the center of three exciting, high-growth technology markets. Our largest opportunity is the
virtual infrastructure market – for desktops, applications, and servers – a market that the Company expects
to grow between 25% and 30% annually.  e application networking market – for optimizing the delivery
of web applications – is one which Citrix expects to grow between 20% and 25% annually. And the real-time
collaboration market – for sharing applications and desktops over the web – is expected to grow about 15%
to 20% annually.  ese markets are being driven by intense business needs to lower the cost of computing, to
tap into the power of globalization, to enable the “green corporation,” and to adapt to a more dynamic world.
On the cover of our 2006 Annual Report we made a bold statement that said “over the next decade, delivering
application to people – wherever they work or play – will become a de ning issue for IT. Why? Because
applications are the language of business. Winners will be  uent with application delivery. Others will lag
behind, struggling with the pace of change in an increasingly dynamic world.” Just one year later, this is
even truer.  is point of view is the driving force behind our strategy.
We enter the year with solutions that are known for delivering strong ROI and fast payback, and for leveraging
existing IT investments. Strong growth of our 2007 license updates and technical services means Citrix
infrastructure is becoming more prominent on IT’s strategic radar. No doubt, these characteristics will
be valuable in 2008 as the tech industry faces potential economic headwinds.
We’re maintaining a sharp focus on strategic execution and on continuing to extend our technology lead
across our market segments. As I write this letter, our 2008 business plan is o to a very fast start. We’ve
already formally launched the XenServer product family targeting mid-market enterprise customers for
server virtualization. Reaching enterprise customers is the strategy behind our OEM embedded hypervisor
program in this market. Our OEM partners – including HP, Dell and NEC – are just beginning to ship our
virtualization solutions in new x86 servers.
XenDesktop, our much-anticipated desktop virtualization product, has been enthusiastically received
by early adopters. Desktop virtualization is in its very early stages and has huge potential.