Citrix to Expand in Virtual Desktop - Analyst Blog
May 24 2011 - 12:32PM
Zacks
One of the leading providers of virtual computing solutions,
Citrix Systems Inc. (CTXS) will expand its Virtual
Desktop Infrastructure (VDI) footprint by acquiring Kaviza, which
makes VDI-in-a-Box product. Kaviza is a privately owned company
based in Sunnyvale, California and has been strategic partner to
Citrix since April 2010.
VDI is a server computing model that enables desktop
virtualization that stores user’s data centrally through a remote
central server, instead of providing local storage. Thus, when
users work from their local machines, they can easily access all
programs, applications, processes, and data stored centrally in a
virtual machine.
Kaviza's VDI-in-a-Box is an integrated solution, which comes in
a package of different technologies and expertise required for
building virtual desktop solution. It focuses on simplifying the
entire process of deploying a VDI as well as providing time and
cost economy for small and midsize businesses.
Virtualization is percolating into small and midsize businesses
operations, reducing desktop management costs, improving security
and strengthening business networking.
The desktop virtualization market is expected to accelerate
further in 2011. While server virtualization currently has an
addressable market size of approximately 35 million servers’
worldwide, desktop virtualization has the potential to impact more
than 600 million desktop users in corporate environments alone. It
is estimated that desktop virtualization will be available in 50
million personal computers by 2013.
Hence, the acquisition will aid Citrix to gain ground in small
and medium business markets by complementing its XenDesktop product
line for enterprise-wide desktop virtualization.
We believe the virtualization market will continue to flourish
with desktop virtualization as its core theme. This will sustain
future growth at Citrix and its major competitors VMware
Inc. (VMW) and Microsoft
Corp. (MSFT).
Consequently, we maintain our long-term outperform
recommendation for Citrix supported by a Zacks #2 Rank (Buy).
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