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Citrix is poised to thrive in a heterogenous and consumerized IT space
Citrix is poised to thrive in a heterogenous and consumerized IT space
Citrix is poised to thrive in a heterogenous and consumerized IT space
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Citrix is poised to thrive in a heterogenous and consumerized IT space

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  • 1. TBR T E C H N O L O G Y B U S I N E S S R ES E AR C H , I N C . TBR EVENT PERSPECTIVE Citrix is poised to thrive in a heterogeneous and consumerized IT space Citrix Industry Analyst Meeting 2013 Santa Clara, Calif.; Sept. 18–19, 2013 Author: Matthew Casey (matthew.casey@tbri.com), Analyst TBR Perspective The state of the IT market, characterized by heterogeneous environments and multiple end-user devices in organizations, presents opportunities that Citrix is innately positioned to cultivate. With a core portfolio of virtualization and cloud solutions, Citrix’s goal will be to empower IT departments by delivering the tools and capabilities necessary to increase end-user value. Citrix will realign its go-to-market strategy around holistic solutions sales, with a value proposition of simultaneously delivering positive end-user experiences and facilitating IT departments’ abilities to manage and secure heterogeneous environments. Citrix’s portfolio of virtualization and cloud solutions positions the company to facilitate the mobilization of workplaces Trends such as the consumerization of IT and the mobilization of traditional workplaces transformed the IT landscape for end-users and IT departments. From an IT perspective, managing, maintaining and securing heterogeneous environments that span multiple devices and endpoints is daunting and can potentially cripple an organization. Despite this crippling effect, the flexibility and applicability traditional consumer devices provide for end-users continue to drive consumerization of IT and are increasing the fissures in IT environments. This is where Citrix comes in: The growing rift between traditional IT practices and end-user mobility is the opportunity that Citrix capitalizes on and one that places Citrix in a position to facilitate the delivery and consumption of cloud and mobile solutions in organizations.
  • 2. TBR With vendors such as Google and Apple catering to consumers with devices and flexible platforms, and more traditional vendors such as Microsoft and Oracle occupying existing IT environments, stitching the environments together to enable organizations to effectively and securely manage IT can be a challenge. Touting a value proposition of enabling “mobile work styles,” Citrix capitalizes on heterogeneous IT environments by allowing endusers to utilize the devices they want while simultaneously enabling IT to effectively secure and manage these disparate solutions. Leveraging core virtualization offerings such as XenMobile and XenDesktop, and recent acquisitions (such as Zenprise) combined with a new cloud division, Citrix is positioned portfolio-wise to capitalize on the gaps left between consumerized and traditional IT through an integrated, solutions-led approach. From a go-to-market perspective, transitioning to a solutions-led approach rather than point-product sales will drive the depth of solutions in organizations and resonate the value proposition to expand customer engagements. The company will face inherent internal sales execution challenges and external competitive risks Citrix contains the baseline portfolio to piece together IT environments with end-user devices, but the company faces inherent challenges internally and externally as it transitions its strategy to better align with consumption trends. From a go-to-market standpoint, transitioning an inside sales organization and a network of channel partners to be more solutions-focused, rather than point-product-oriented, will take at least one to two years (though Citrix notes this transition has been under way for six to nine months). In addition to transitioning its goto-market approach, Citrix will face challenges educating and transitioning customers to think in-line with its message. Al Monserrat, senior vice president of worldwide sales and services, said customers, “want to talk mobility, but they don’t know what they want,” which challenges Citrix to simultaneously define mobility for customers while closing deals. From a competitive perspective, vendors that are providing functional workloads (e.g., Microsoft, Salesforce.com) threaten to squeeze Citrix’s addressable market by filling performance gaps themselves. TBR sees Citrix’s leading vision and proven portfolio as differentiators, despite these risks and challenges, which will ultimately enable the company to continue its rapid growth trajectory and help enable the next generation of consumerized work environments. Simplified portfolio integration will help drive solutions sales and expand customer relationships Citrix will face internal and external challenges associated with providing mobile work styles, but TBR believes Citrix possesses the baseline portfolio to execute on this strategy. For Citrix, the portfolio strategy centers on six key areas — social collaboration, data sharing, mobile platforms, Windows as a Service, cloud networking and cloud platforms — allowing people “to work when, where and how they want to” and providing IT the tools to manage these various pieces. Underlying these six areas were two statements from Citrix SaaS Division Senior Vice President and General Manager Chris Hylen that encapsulated the overall message at the event: The next generation of consumers will never buy a tethered device and people no longer accept clunky business applications, reaffirming the message that end-users want access wherever and whenever, and that interaction with IT needs to remain simple and user-friendly. With these concepts in mind, the portfolio strategy for Citrix entails simple packaging of products to engage with specific customer groups (vertical- and segment-based) and grow customer relationships. Leveraging a portfolio that spans social collaboration, data sharing, desktop virtualization, BYOD and cloud platform and infrastructure, Citrix is positioned to provide end-to-end solutions to mobilize traditional IT environments. Citrix provides a user www.tbri.com
  • 3. TBR experience on standard business applications and devices that mirror the experience of consumer applications and devices, helping the company’s value proposition resonate across its customer base. Whether providing one-touch meeting access to a mobile session of GoToMeeting or providing access to virtual Windows OS on any device at any time, minimizing the gaps in the end-user experience and establishing positive first-use experiences will increase awareness of the Citrix brand name throughout the end-user community. A ‘pull’ go-to-market strategy will effectively make IT departments a vehicle for Citrix solution delivery Key go-to-market initiatives for Citrix include integrated solutions sales through entry with specific point products as well as a drive to shift the go-to-market strategy from push to pull. TBR believes the most effective go-to-market strategy shift will be the realignment to a pull strategy. While delivering end-user value is essential to creating brand recognition and positive use-cases, providing IT the tools to effectively manage these solutions in-house as they come will ultimately help scale Citrix’s presence in organizations. With IT often the gatekeeper for large-scale IT purchases, appeasing IT decision makers and concentrating on their user experience will make sales conversations and execution easier for internal and channel-led sales approaches. Monserrat reaffirmed the value of a pull strategy when he said, “Our best account rep at Broward Health is the director of technical services at Broward Health.” Providing IT with the tools to successfully manage and maintain heterogeneous IT environments will give Citrix invaluable proponents of their solutions inside organizations. For solutions sales, formulating best practices and repeatable road maps to land and expand customer engagements across the portfolio will help Citrix extend presence in its install base and grow multiproduct customers. Whether leading with social collaboration tools such as GoToMeeting or Podio, or upselling packages that include XenMobile or XenDesktop (or vice-versa depending on the customer), Citrix will expand customer relationships through targeted vertical and horizontal strategies. Technology Business Research, Inc. is a leading independent technology market research and consulting firm specializing in the business and financial analyses of hardware, software, professional services, telecom and enterprise network vendors, and operators. Serving a global clientele, TBR provides timely and actionable market research and business intelligence in a format that is uniquely tailored to clients’ needs. Our analysts are available to further address client-specific issues or information needs on an inquiry or proprietary consulting basis. TBR has been empowering corporate decision makers since 1996. For more information please visit www.tbri.com. ©2013 Technology Business Research Inc. This report is based on information made available to the public by the vendor and other public sources. No representation is made that this information is accurate or complete. Technology Business Research will not be held liable or responsible for any decisions that are made based on this information. The information contained in this report and all other TBR products is not and should not be construed to be investment advice. TBR does not make any recommendations or provide any advice regarding the value, purchase, sale or retention of securities. This report is copyright-protected and supplied for the sole use of the recipient. Contact Technology Business Research, Inc. for permission to reproduce. www.tbri.com

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