Citrix Conference Call

During the Citrix Q3 2014 Investor Call you Might Have Picked Up this Detail.

It was direct and major reference to our Citrix Service Provider business – where our Service Provider partners are creating profitable recurring-revenue businesses centered around hosting one or more Citrix products, often as Business Ready Desktop-as-a-Service (DaaS) offers. Said COO David Henshall:

“… This subscription-based business, now servicing over 500,000 users, again grew more than 50% YoY and now represents about 7% of our App & Desktop license mix.”

This means … Yes, our partners are now responsible for a rapidly-growing DaaS business with over a half-million seats in production!

Why is this such a rapidly-growing opportunity, and who are these partners?

It’s growing because more businesses want to outsource their desktop and application workspace environments – benefitting from greater security, mobility, device-independence and business continuity. And it’s growing because more hosted services providers see that hosting desktops, apps, follow-me-data and device management services provide greater value and differentiation. They often go far beyond commodity hosting services to provide ready-to-use vertically-specialized desktop services.

Who are our Citrix Service Provider partners?

They can be any managed service provider who’s enlightened enough to know that they need to climb the value chain and provide greater value to customers. And Citrix providers range from niche players to regional Telcos such as TDS OneNeck and Digicel, to global names like AT&T and their Virtual Desktop Service.

Finally – why is this great overall for Citrix, our partners and our customers?  Well, first read Consumption Economics and you’ll see that (as a provider) creating recurring revenue streams is highly profitable. Plus, delivering Software-as-a-Service directly benefits the end-user customer with decreased implementation risk, while giving the provider an opportunity to continually improve the service. Plus, the customer benefits by avoiding large capital expenditures, opting for enterprise-grade services that adapt to varying needs and sizing.

So, a BIG thanks to our Citrix Service Provider partners, as well as to their customers. We’re looking forward to growing the market further, and to adding even more value-add to the market!

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