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Citrix Systems Business Strategies in the US

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market study
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10 pages
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"Citrix Systems, one of the leading providers of server and desktop virtualization, networking, Software-as-a-Service, and cloud computing, was founded in 1989 by Edward lacobucci. The company is based in Fort Lauderdale, Florida and has an employee count of over 4800. The company provides services to over 230,000 organizations and has subsidiary operations in California and Massachusetts. A company that started out with just 18 employees today boasts of providing products and services to 100% of Fortune 100 and 99% of Fortune Global 500. It offers a range of services including: desktop solutions, online services, data center and cloud solutions, consulting, technical support, and product training and certification services.

Recent Trends in the US Software Industry

Some significant secular changes have been taking place in the past few years. The historical demarcations among software, hardware and services are rapidly blurring. Cloud computing technology has led to such huge structural changes in the industry that are akin only to the advent of PCs. SaaS models are rapidly realizing their potential and are pushing software companies to fill out their offerings quickly to lock in customer transitions.

Software industry in the country is intensely competitive, with over 50% of the global top 100 software companies based in the US. Citrix competes with Microsoft, Cisco Systems, F5 Networks, Juniper Networks, Riverbed Technology and Blue Coat Systems.

Citrix Systems Strategies

Citrix uses an acquisition strategy to establish its presence in new markets including application networking, online collaboration services, and the virtualization of server and desktop OSs. In the past few years the company has made some significant acquisitions in the US.
To strengthen its leadership position in the virtualization market, Citrix Systems acquired XenSource in 2007. This acquisition gave the company a much needed technological base to pull off its cloud computing product line, without making substantial investments in R&D. With the cloud computing market expected to exceed $11 billion by the end of 2013, Citrix acquired VMLogix and Cloud.com in 2010 and 2011, respectively. With these additions, Citrix Systems is set to offer a complete portfolio of virtualization, orchestration and networking solutions.

Keeping its focus on providing ?lighter, simpler and more flexible IT', Citrix acquired RingCube, a young and aggressive desktop virtualization start up, to add another distinguishing capability in the desktop virtualization marketplace.

In a tumultuous economic situation, Citrix Systems strategy of acquiring young start ups to eliminate R&D costs and timelines looks like the right to thing to do. Whether or not it can beat its competitors in this acquisition game and achieve growth remains to be seen."

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