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Citrix Global Survey of DaaS Service Providers Reveals Growth, Infrastructure Trends, Vertical Market Maturity

Service providers around the world who deliver Desktops-as-a-Service (DaaS) and other hosted mobile workspaces anticipate steady revenue growth, particularly through business-ready service bundles that target specific vertical markets. Citrix revealed those insights and others in the report Desktops-as-a-Service Global Market Trends: The Service Provider Perspective, based on research conducted by the Citrix Service Provider Center of Excellence.

To gain insights into the evolution of the emerging DaaS market, the Center of Excellence sent survey questions in the second quarter of 2014 to more than 2,600 Citrix Service Provider program partners around the world who deliver DaaS and hosted mobile workspaces to a variety of customers. The survey generated responses from more than 700 Citrix Service Providers across in 25 countries, who provided their perspective on the potential for DaaS revenue growth, the size of businesses embracing the service, vertical market traction, the types of service bundles that are resonating with customers and the diversity of infrastructure being used to deliver DaaS and hosted mobile workspaces.

The report highlights the following DaaS market trends as service providers see them:

  • Strong DaaS revenue growth:
    87 percent anticipated DaaS revenue growth, with 34 percent projecting growth to range between 16 and 50 percent, with 19 percent of the respondents projecting revenue growth to exceed 50 percent
  • High demand for business-ready desktops and workspaces combined with application and feature bundles:
    53 percent see demand for bundled services that combine DaaS with line-of-business applications, mobile device management services and cloud-based file sharing services to solve the specific needs of each business customer
  • Specialization in vertical markets with customized services, applications and features:
    Top vertical markets targeted by service providers with specialized services included Healthcare (12 percent), Manufacturing (12 percent), and Construction/architecture/engineering (10 percent)
  • A growing shift to public cloud Infrastructure-as-a-Service (IaaS) for delivering DaaS is beginning, but in the early stages:
    One-fifth (20 percent) of service providers deliver DaaS from a public cloud, but 39 percent of respondents plan to depend on IaaS in 12 months
  • DaaS service providers vary in hypervisor preferences:
    While many respondents (47 percent) use the VMware hypervisor, 29 percent use Microsoft Hyper-V, and 23 percent use Xen as their hypervisor

Additional survey highlights and responses, along with anecdotes from partners and a link to download the report are available at http://www.citrix.com/solutions/hosted-desktops/daas-market-trends.html.

Quotes:

Mitch Parker, Vice President and General Manager, Citrix Cloud Services

“In a market where lots of vendors and pundits are claiming exponential growth of their DaaS solutions, this report provides clear, valuable insights into the maturity of the Citrix partner channel, their solutions and the value they truly provide to end users.”

David Powell, Vice President of Managed and Cloud Services, TekLinks

“In the healthcare space, our differentiation is understanding a medical practice. We don’t talk speeds and feeds, we discuss regulations, compliance and the business of a medical firm. TekLinks has established domain expertise in our vertical markets so we can easily interface with clients who know we deeply understand their business. TekLinks hosted desktops have a premium price – never less than $100 per user – because our clients understand we customize the hosted solution to the specific needs of their industry and their particular business.”

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About Citrix

Citrix (NASDAQ:CTXS) is a leader in mobile workspaces, providing virtualization, mobility management, networking and cloud services to enable new ways to work better. Citrix solutions power business mobility through secure, personal workspaces that provide people with instant access to apps, desktops, data and communications on any device, over any network and cloud. This year Citrix is celebrating 25 years of innovation, making IT simpler and people more productive. With annual revenue in 2013 of $2.9 billion, Citrix solutions are in use at more than 330,000 organizations and by over 100 million users globally. Learn more at www.citrix.com.

For Citrix Investors

This release contains forward-looking statements which are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and of Section 21E of the Securities Exchange Act of 1934. The forward-looking statements in this release do not constitute guarantees of future performance. Those statements involve a number of factors that could cause actual results to differ materially, including risks associated with the impact of the global economy and uncertainty in the IT spending environment, revenue growth and recognition of revenue, products and services, their development and distribution, product demand and pipeline, economic and competitive factors, the Company's key strategic relationships, acquisition and related integration risks as well as other risks detailed in the Company's filings with the Securities and Exchange Commission. Citrix assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein. The development, release and timing of any features or functionality described for our products remains at our sole discretion and is subject to change without notice or consultation. The information provided is for informational purposes only and is not a commitment, promise or legal obligation to deliver any material, code or functionality and should not be relied upon in making purchasing decisions or incorporated into any contract.

© 2014 Citrix Systems, Inc. All rights reserved. Citrix and Xen are trademarks of Citrix Systems, Inc. and/or one or more of its subsidiaries, and may be registered in the U.S. Patent and Trademark Office and in other countries. All other trademarks and registered trademarks are property of their respective owners.

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