Citrix 2009 Annual Report Download - page 21

Download and view the complete annual report

Please find page 21 of the 2009 Citrix annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 138

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138

manually configuring physical desktops which is time-consuming, expensive and inconsistent. We also face
numerous competitors that provide automation of these processes and alternative approaches including
VMWare’s View product. We believe XenDesktop gives Citrix a competitive advantage by providing customers
multiple ways to manage desktops within one, integrated desktop virtualization system.
Online Services
Our SaaS products for web collaboration, remote support, and remote access continue to maintain solid
leadership positions, particularly among small and medium-sized businesses, or SMBs, in extremely competitive
markets. We differentiate our SaaS products by designing simple, secure, reliable and cost-efficient services that
deliver superior customer experience. Our competitors range from large, established technology firms to small,
internet-based startups.
We have been a market leader in SaaS-based secure remote access with our GoToMyPC product for many
years. Our direct competition includes LogMeIn, free solutions such as Microsoft’s Live Mesh, and those from
many internet startups. In addition, new remote access features in desktop operating systems like Microsoft
Windows and Macintosh OSX provide alternatives to our solution. We differentiate by continuing our focus on
security, ease-of-use and support for multiple desktop operating systems.
In web collaboration we compete primarily with Cisco’s WebEx product which is the market leader. Our
products, GoToMeeting and GoToWebinar, have proven competitive based on ease-of-use and the All You Can
Meet®pricing model. In 2008, we acquired an audio services company, with advanced VoIP-based audio
technology, giving us an opportunity to market audio conference calling services directly to SMBs and
enterprises. We further differentiate our collaboration products by integrating PSTN, VoIP and toll-free audio
services. We believe these features give us competitive advantage among individual, prosumer, and SMB
customers. We expect to expand our collaboration offering with GoToTraining™, an online training service
purpose-built for the corporate training market.
Our on-demand support products, marketed under the GoToAssist brand, have achieved the largest market
share worldwide for Web-based clientless remote support. This product line includes versions purpose-built for
individual users, consultants and small businesses, positioning Citrix as the only provider of remote support
solutions for all segments of the market. In remote support, we compete with Cisco’s WebEx and LogMeIn.
Datacenter and Cloud Solutions
In the server virtualization market, we compete directly with VMware which was first to market with this
technology and is widely regarded as the market leader. We believe XenServer, our server virtualization product,
has features that are competitive with VMware’s ESX Server in terms of performance, scalability and other
enterprise-class capabilities. XenServer is offered as a free download which significantly increases the reach of
server virtualization to customers of all sizes and geographies. In 2008, Microsoft entered this market with a
hypervisor-based server virtualization product called Hyper-V which is also available free of charge. We
monetize the XenServer and Hyper-V products by selling advanced management, storage integration, and
automation capabilities offered through Citrix®Essentials™ .
Our NetScaler web application delivery products compete against other established competitors including,
Cisco Systems, Inc., or Cisco, and F5 Networks, Inc., or F5. Both compete with us for traditional enterprise sales
opportunities, while F5 is our principal competitor in the Internet-centric market segment. We continue to
enhance NetScaler’s feature capability and aggressively market NetScaler to our existing customer base. Our
Access Gateway or SSL/VPN product faces competition from Cisco and Juniper Networks, Inc., or Juniper. Both
competitors are well known and established in the SSL/VPN market. In contrast, we have not had a presence in
that market for as long as our competitors and we do not command the same level of brand recognition. We do,
however, have the largest market share measured in units. Our competitive success in this market has come from
13