CTXS Citrix Systems Inc

Citrix Systems Inc. (CTXS), a market leader in virtual computing solutions, recently completed the acquisition of ShareFile for an undisclosed amount. ShareFile is a leading provider of secure, cloud-based data storage, sharing and collaboration solutions. With this acquisition, Citrix is now solidly placed in the highly lucrative cloud-based data storage segment. As per the company, the personal cloud computing market is expected to become a multi billion dollar opportunity by 2015.

ShareFile offers cloud solutions for companies of various types and sizes. Moreover, business enterprises can securely store, synchronize, and share documents both within and outside their setup using ShareFile technology. At present, ShareFile has more than 2 million business users spread across 14,000 paying corporate customers.

Cloud computing, which allows remote access to data, is growing at an enormous rate throughout the world.  As a leading provider of enterprise software with desktop virtualization at its core, Citrix will benefit from the latest trend of globalization.We believethe virtualization market will flourish in the near future with desktop virtualization as its central point. This may lead Citrix to report impressive results. Management already raised its financial forecast for full-year 2011.

Earlier, Citrix completed the acquisition of Cloud.com Inc., a leading developer of software infrastructure platform for cloud computing service providers. The CloudStack product suite of Cloud.com offers an open-source platform-as-a-serviceenvironment that enables the cloud service providers to deploy and manage scalable applications in simplistic and cost-effective way. With Cloud.com and ShareFile in its kitty, Citrix is at present comfortably placed at par with cloud computing software leader VMware Inc. (VMW). We maintain our long-term Neutral recommendation on Citrix. Currently, it holds a short-term Zacks #3 Rank (Hold) on the stock.

 
CITRIX SYS INC (CTXS): Free Stock Analysis Report
 
VMWARE INC-A (VMW): Free Stock Analysis Report
 
Zacks Investment Research