Citrix Systems

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Not to be confused with Cyrix.
Citrix Systems, Inc.
Public
(NASDAQCTXS)
S&P 500 Component
Industry Software
Founded 1989
Founder Ed Iacobucci
Headquarters Fort Lauderdale, Florida, United States
Area served
Global
Key people
Thomas F. Bogan (Chairman)
Mark B. Templeton (CEO)
David Henshall (CFO)[1]
Products Application Delivery Industry, Virtualization software (DaaS), SaaS, cloud, and networking
Revenue Increase US$ 3,142.856  million (2014)[2]
Decrease US$ 302.311 million (2014)[2]
Profit Decrease US$ 251.723 million (2014)[2]
Total assets Increase US$ 5,512.007 million (2014)[2]
Total equity Decrease US$ 2,173.645 million (2014)[2]
Number of employees
10081 (Dec 2014) minus 700 [3]
Website www.citrix.com

Citrix Systems, Inc. is an American multinational software company founded in 1989 that provides server, application and desktop virtualization, networking, software-as-a-service (SaaS), and cloud computing technologies.

The company began by developing remote access products for Microsoft operating systems. It licensed source code from Microsoft and has been in partnership with the company throughout its history. Citrix came to prominence in the 1990s as a leader in thin client technology. Through several acquisitions in the mid-2000s, the company expanded into server and desktop virtualization, as well as cloud and Infrastructure as a Service.

Citrix currently services around 330,000 organizations worldwide[4] and is based in Fort Lauderdale, Florida, in the Miami metropolitan area, and Santa Clara, California, with subsidiary operations in California and Massachusetts, and additional development centers in Canada, Germany, Denmark, the United Kingdom, India and Australia. Its president and CEO is Mark Templeton.

History[edit]

Early history[edit]

Citrix was founded in Richardson, Texas in 1989 by former IBM developer Ed Iacobucci with $3 million in funding.[5] Following its initial setup and development, Iacobucci moved the company to his former home of Coral Springs, Florida.[5] The company's first employees were five other engineers from IBM that Iacobucci convinced to join his team. Iacobucci served as chairman of the company and Roger Roberts became the CEO of Citrix in 1990.[5][6][7] Citrix was originally named Citrus, but changed its name after an existing company claimed trademark rights.[8] The Citrix name is a portmanteau of Citrus and UNIX.[9]

The company's first product was Citrix Multiuser, an extension of OS/2 developed over two years. Citrix licensed the OS/2 source code from Microsoft,[6][10][5] and developed its own Independent Computing Architecture (ICA) protocol for Citrix Multiuser.[11] Multiuser allowed multiple users working on separate computers remote access to software on a server, even from computers not built to run OS/2.[10][12] Three days before the product launched in 1991, Microsoft announced they would be switching from OS/2 to Windows. The switch made Multiuser nearly unusable without significant changes to make it compatible with Windows or DOS. The company discussed closing in 1991, but investments from Intel, Microsoft and Kleiner Perkins Caufield & Byers among others, allowed the company to work on a new version of Multiuser.[6][5]

Multi-Win version 2.0 was released in 1992. It was compatible with DOS applications and allowed up to five users.[13] In 1993, Citrix released a new remote applications server, WinView, which had the ability to run DOS and Windows applications.[14] By 1994, the company's yearly revenue equaled US$10 million.[5]

The company launched WinFrame, a multi-user operating system based on Microsoft’s Windows NT, in 1995.[5] The new product allowed up to 15 users and was the first thin client for Windows.[15][16]

Rise in popularity[edit]

Citrix had its initial public offering in December 1995.[17] The company's share price doubled from $15 to $30.[5] During the mid 1990s, Citrix became the leader of its growing industry with very few competitors, and the company's revenues doubled year over year between 1995 and 1999.[6]

In 1997, during negotiations to extend licenses of Windows NT 4.0 source code to Citrix, Microsoft stated it would develop its own competing software to WinFrame. Citrix stocks dropped 62 percent after the announcement.[12] Following weeks of discussions, Iacobucci was able to persuade Microsoft to agree to license Citrix technology for Windows NT Server 4.0, which resulted in Windows Terminal Server Edition in 1998.[6][7][18] This agreement allowed Citrix to keep its position in the marketplace and be NT 4.0 compatible.[12] Citrix also earned $75 million through the agreement, along with a royalty arrangement that was valued at approximately $100 million.[17][12]

Citrix released MetaFrame 1.0 in conjunction with Terminal Server Edition. Due to weaknesses in Microsoft's Remote Desktop Protocol (RDP), Terminal Server Edition worked best using the ICA protocol developed by Citrix and found in MetaFrame. This meant that Citrix technology was purchased and installed on most machines running Terminal Server Edition.[18][7]

In 1997, the company opened a new headquarters in Fort Lauderdale, Florida. It also opened offices in Sydney, London and Paris that same year.[17] In 1998, Mark Templeton became the CEO of Citrix after serving as vice president of marketing.[17] Also in 1998, it licensed its ICA protocol to IBM and Key Tronics.[5] Citrix licensed its ICA protocol to Motorola for use in digital wireless handsets in 1999.[6]

During 1999, the thin-client model Citrix used became a software trend and the company's customers increased to 15 million.[5] Major clients included Sears, AT&T, and Chevron.[12][7] A sudden drop in stocks in 2000 led to Iacobucci leaving the company and CEO Mark Templeton being demoted to president and senior executive officer. Templeton was later reinstated in 2001.[17][19]

Expansion[edit]

In 2001 Citrix acquired the Sequoia Software Corp. for $185 million.[5] That same year it released MetaFrame XP, a new platform using MetaFrame technology.[20] This was later rebranded by Citrix as Presentation Server, in 2005.[21]

On July 9, 2002, Citrix announced a 10% job cut. At the time the company employed about 1,900 workers. After the announcement the stock hit a five-year low.[22]

Citrix acquired ExpertCity, a provider of remote desktop products, in December 2003 for $225 million in cash and stock. The acquisition was the largest for the company up to that date.[23] Through the acquisition, Citrix gained ExpertCity's existing products GoToMyPC and GoToAssist, and ExpertCity became the Citrix Online division of the company.[23][24] In 2004, the company introduced Citrix GoToMeeting.[17]

Between 2005 and 2012, the company acquired over a dozen companies that allowed them to expand in new markets. Citrix acquired acceleration hardware maker NetScaler in 2005, which allowed the company to offer optimized application delivery.[25] The company entered the server and desktop virtualization market with the purchase of XenSource in August 2007.[26] Citrix expanded cloud and Infrastructure as a Service (IaaS) offerings in August 2010 with the acquisition of VMLogix.[27] In February 2011, Citrix entered the European Software as a Service (SaaS) market with the acquisition of Netviewer.[28][29]

The company became a leader in IaaS after the acquisition of Cloud.com, provider of cloud infrastructure for companies, in July 2011.[30] Citrix began offering VDI-in-a-box to small and medium businesses with the acquisition of Kaviza in May 2011.[31] The company acquired technology for cloud-based file sharing and storage through its purchase of ShareFile in October 2011.[32]

In May 2012, Citrix acquired Virtual Computer, maker of intelligent desktop virtualization. The technology is used in the company's XenClient Enterprise edition.[33] Citrix entered the mobile video and telecom markets in June 2012 when the company acquired ByteMobile.[34] Also in 2012, the company acquired Zenprise. Zenprise's Mobile application management (MAM) technology was released as XenMobile in February 2013.[35]

In 2007, the company opened a headquarters in Silicon Valley.[17] In 2008, the company changed the name of its Presentation Server product line to XenApp.[36] Also in 2008, Citrix announced an expanded alliance with Microsoft on desktop virtualization solutions.[17] On January 29, 2009, Citrix announced that 460 employee positions would be cut, comprising 10% of its workforce.[37] In August 2010, Citrix announced a partnership with Google to bring the company's products to Chrome OS devices.[38][39]

Citrix acquired Framehawk in January 2014 in order to use the company's technology to improve the delivery of virtual desktops and applications over wireless networks, including cellular, where speed and quality may be poor.[40]

On January 29, 2015, Citrix announced that 700 full-time and 200 contractor positions would be eliminated.[41] This constituted about 10% of its workforce. The cuts were expected to save between $90 and $100 million a year. Two hundred of the layoffs occurred in Fort Lauderdale, Florida, where the company is headquartered.[42]

On July 14, 2015, Citrix added full support for Windows 10 to its desktop virtualization products.[43]

Operations[edit]

Citrix is an American company that creates software for use on PCs and other devices to remotely connect to desktops, applications, and networks. The company's products and services are related to server, application, and desktop virtualization; networking; cloud; and Software as a Service (SaaS).[44][45] These products and services are used by approximately 330,000 organizations worldwide.[46]

Citrix has headquarters in Fort Lauderdale, Florida and Santa Clara, California. Its other United States offices are in California and North Carolina.[47][48] Citrix research and development centers are located in the U.S., Australia, India, Japan, and the United Kingdom.[49]

The company's President and CEO is Mark Templeton and its COO and CFO is David Henshall.[44] The company has 10,081 employees as of February 2015.[50]

Citrix is organized into three units: Workspace Services, Delivery Network, and Mobility Apps.[51] Citrix licenses its services and products directly to clients, including IT professionals, SMEs, and through companies called value-added resellers that resell the products and services after adding additional features.[44]

Citrix is publicly traded under the ticker symbol CTXS.[45] The company's revenue in 2014 equaled US$3.14 billion, an increase from $2.91 billion in 2013 and $2.59 billion in 2012.[52][44] In 2014, the company ranked 741 on the Fortune 1000 and 1,793 on Forbes Global 2000.[53][45]

Acquisitions[edit]

When What Price
September 1997 DataPac[54] $5 million
January 1998 The NTrigue product from Insignia[55] ?
June 1998 APM[56] ?
July 1998 VDOnet $8 million[56]
July 1999 ViewSoft[56][57] $32 million
February 2000 Innovex Group $48.7 million[58]
March 2001 Sequoia Software Corporation,[59] a Columbia, MD, maker of XML-based portal software. $185 million
December 2003 Expertcity of Santa Barbara, CA, developer of the Web-hosted portable desktop product GoToMyPC and online meeting platform GoToMeeting.[60] Expertcity became Citrix's Citrix Online division. $225 million
November 2004 Net6 of San Jose, CA.[61] $50 million
June 2005 Netscaler,[25] a Santa Clara, CA, manufacturer of network appliances. About $300 million in cash and stock.
November 2005 Teros,[62] a Sunnyvale, CA, producer of web application firewalls. ?
May 2006 Reflectent.[63] The product Spectacle was then relabeled as Citrix EdgeSight. ?
August 7, 2006 Orbital Data of San Mateo, California.[64] ?
December 2006 Ardence Inc., resulting in the product Citrix Provisioning Services[65](PVS[66]) ?
February 2007 Aurema, developer of a CPU and memory management product,[67] resulting in the addition of a CPU management feature to Citrix's main product XenApp. ?
September 2007 QuickTree, a privately held XML and Web Services Firewall company. ?
October 2007 XenSource, developer of the virtualization product XenServer that is based on the open source Xen Hypervisor.[68][69] $500 million
May 2008 The sepagoProfile product from sepago.[70] ?
November 2008 Vapps[71] $26.6 million
August 2010 VMLogix Inc., a virtualization automation and management company.[72] ?
February 2011 Netviewer[73] ?
February 2011 Ems-Cortex. Cortex product now sold as CloudPortal Services Manager ?
June 2011 Kaviza, now resulting in a product called VDI-in-a-box. ?
July 2011 Cloud.com[74] ?
August 2011 RingCube ?
October 2011 ShareFile[75] ?
October 2011 App-DNA[75] ?
April 2012 Podio [76][77] ?
May 2012 Virtual Computer ?
June 2012 Bytemobile[78] $435 million
September 2012 Beetil ?
December 2012 Zenprise now sold as XenMobile[79] $327 million
September 2013 KMnO4 ?
January 2014 FrameHawk ?
May 2014 Scalextreme ?
August 2014 Virtual, iOS and Android virtualization.[80] ?
October 2014 RightSignature, a company that provides online document signing tools.[81] ?
November 2014 Solid Instance ?
December 2014 Octoblu, a machine to machine networking platform ?
January 2015 Sanbolic, a storage virtualization technologies company ?
April 2015 Grasshopper, a small business VOIP provider[82] ?

Products[edit]

Citrix creates software that allows the individuals of an enterprise to work and collaborate remotely regardless of device or network. The main areas the company works in are desktop and apps, Desktop as a Service (DaaS), Software as a Service (SaaS), networking and cloud.[83][84]

Desktops and apps[edit]

Citrix offers a number of products related to desktop and application virtualization. These tools allow access to Windows desktops and applications independent of the machine they're actually on, from any device with any operating system.[85] Citrix XenApp provides application virtualization, and Citrix XenDesktop, Citrix VDI-in-a-Box and XenClient all provide desktop virtualization.[86][87] The DesktopPlayer for Mac allows online and offline access to Windows virtual desktops from Macs.[88] Citrix Workspace Cloud is a platform for building and delivering desktops and applications from the cloud.[89] ShareFile allows companies and organizations to sync and share files.[90] XenMobile offers mobile app and device management, and Citrix Receiver is client software that allows universal access to virtual applications and desktops. Citrix also provides GoToMyPC, which is an online service for remote desktop access.[87][86]

Desktop as a Service (DaaS)[edit]

Citrix technology enables service providers to provide Desktop as a Service (DaaS) offerings to their customers, including business apps and desktops.[83] These products include: Worx Mobile Apps for secure email, browser, and document sharing;[91] Citrix Workspace Suite for mobile workspaces;[51] and AppDNA, software that provides application migration and management.[86]

Networking and cloud[edit]

Citrix products related to cloud computing and networking include Citrix XenServer for server virtualization;[87] CloudPlatform powered by Apache CloudStack for building cloud infrastructure;[92] CloudBridge for WAN optimization;[93] and its Netscaler brand of network appliances, Application Delivery Controller (ADC), Gateway, and AppFirewall.[84] The company also has ByteMobile Adaptive Traffic Management, which aims to optimize mobile video services through traffic management, policy control and caching, and ByteMobile Insight, which provides mobile data and subscriber analytics.[83][94]

Software as a Service (SaaS)[edit]

Citrix Software as a Service (SaaS) products are focused on collaboration and communications. The offerings include GoToAssist for remote IT support; GoToTraining, which supports online training; GoToMeeting, which facilitates online meetings; GoToWebinar for webinars and online conferencing; Podio, a cloud-based collaboration service; and OpenVoice, which provides audio conferencing.[87][90]

Corporate responsibility[edit]

The company's philanthropic activities include corporate giving—such as corporate donations of in-kind gifts—and employee match programs.[95][96] Citrix provides discounted and donated products to non-profits and other qualifying organizations through TechSoup.[97] In addition, Citrix employees are allowed to take two paid volunteer days each year and participate in the company's annual "Global Day of Impact"—an event that encourages Citrix employees to volunteer in their local communities.[98][99][100]

Near its Fort Lauderdale headquarters, Citrix has provided business training to non-profit teams. In particular, the company helped a local non-profit organization launch a computer on wheels to offer training to low-income neighborhoods. In 2007, the company connected a Broward County, Florida neighborhood with Agogo, Ghana through donated technology and training. Using the technology, the "Cyber Sister Cities" work together to sell African organic honey in the United States.[101] Furthermore, the company's Raleigh office began a program called "Project Code" in 2014, which leads youth from local Boys & Girls Clubs through coding exercises and teaches them about computer science.[102]

In addition to its philanthropic activities, Citrix has donated some of its open-source technology to non-profit software organizations to continue its development and gain more contributors. Citrix gave Cloudstack to the Apache Foundation in 2012 and Xen hypervisor to the Linux Foundation in 2013.[103][104]

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Further reading[edit]

External links[edit]