Citrix Extends Desktop Virtualization Leadership with Acquisition of RingCube

Citrix Systems (NASDAQ:CTXS) today announced it has closed the acquisition of RingCube, a leader in user personalization technology for virtual desktops. The innovative technology from RingCube accelerates virtual desktop adoption by eliminating the tradeoff between user personalization and centralized IT management. When combined with a desktop virtualization product like Citrix XenDesktop®, RingCube makes it easier for IT to give each user a personalized virtual desktop, dramatically reduces the cost of storage, and simplifies the move from physical to virtual desktops. With the acquisition of RingCube, Citrix further solidifies its leadership position in desktop virtualization, helping enterprise customers transform traditional desktop management into a secure, flexible "private desktop cloud” service. The terms of the acquisition were not disclosed.

The Great VDI Tradeoff

Enterprise customers have already begun moving to desktop virtualization. As the industry transitions from the PC Era to the Cloud Era, desktop virtualization products like Citrix XenDesktop have given millions of users around the world the freedom to access their corporate desktops, apps and data from any device, in any location. Desktop virtualization also provides significant benefits to IT, allowing them to host user desktops and apps securely in the datacenter and deliver them as a far more cost-effective centralized service.

In the past, customers using the popular VDI method of virtualization have been forced to choose between two different deployment models. Most customers today choose the "dedicated VDI” model. In this approach, IT hosts a unique, fully assembled desktop for each user in the datacenter, and lets them connect to it remotely from any device. This model gives IT all the benefits of central management while allowing end users a high level of personalization. While this approach is superior to traditional desktop management, storing thousands of unique, fully assembled desktop images in the datacenter can be expensive to maintain.

As a result, some customers opt for the more efficient "pooled VDI” model, which stores only a single image of the Windows OS and each app in the datacenter, and then dynamically assembles each virtual desktop at runtime as users need them. While the pooled approach is far less expensive, the fact that each user gets an identical desktop makes it impractical for many types of employees.

RingCube Eliminates the VDI Tradeoff

RingCube technology breaks down this barrier to enterprise-wide VDI adoption by combining all the benefits of dedicated and pooled desktops, with none of the limitations. It does this by creating a "personal vDisk” for each employee that contains only the apps, data and settings that are unique to that user. All the images that each user has in common – including the Windows OS and all common corporate apps – are stored one time in the datacenter. As a result, each user gets their own unique personal desktop each time they log in, while IT gets all the cost advantages of centrally managing a single instance of Windows and each corporate application for all users. Using RingCube technology with XenDesktop can significantly reduce storage costs versus standard dedicated VDI desktops.

RingCube also makes it easier for customers to make the move from physical to virtual desktops. By isolating all user-specific apps and settings in personal vDisks, IT can be certain that each user’s new VDI desktop will behave exactly the same as their previous physical desktop, making the move entirely transparent to users. This also simplifies migration for desktop administrators by ensuring that their existing tools for managing applications and users continue to work seamlessly.

As an added benefit, isolating each user’s unique apps and settings also gives IT the option of letting users self-install apps into their own personal vDisks.

The RingCube product line is shipping today with full support for Citrix XenDesktop 5. Additionally, Citrix will continue to support existing customers.

Quote

Bob Schultz, Group Vice President and General Manager, Enterprise Desktops and Applications at Citrix

"The acquisition of RingCube underscores our chief goal of enabling users to access their desktops and applications on any device, and making virtual desktops simple and affordable for IT. As customers take on enterprise-wide desktop transformation initiatives, Citrix is in the best position to provide a broad range of technology delivering multiple types of virtual desktops that satisfy every user in the enterprise. RingCube technology adds a significant capability to provide users and IT flexible, personal VDI desktops at a much lower cost.”

Related Links

• Announcement: Citrix Extends Desktop Virtualization Portfolio with Acquisition of Kaviza

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About Citrix

Citrix Systems, Inc. (NASDAQ:CTXS) is a leading provider of virtual computing solutions that help people work and play from anywhere on any device. More than 230,000 enterprises rely on Citrix to create better ways for people, IT and business to work through virtual meetings, desktops and datacenters. Citrix virtualization, networking and cloud solutions deliver over 100 million corporate desktops and touch 75 percent of Internet users each day. Citrix partners with over 10,000 companies in 100 countries. Annual revenue in 2010 was $1.87 billion.

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The forward-looking statements in this release do not constitute guarantees of future performance. Investors are cautioned that statements in this press release, which are not strictly historical statements, including, without limitation, statements by the company concerning the acquisition of RingCube Technologies; integration plans; new capabilities of certain of its products; its plans to expand certain of its technologies and platforms to include enhanced capabilities; the company’s markets; and management’s plans, objectives, strategies and assessments of market factors, constitute forward-looking statements. Such forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by the forward-looking statements, including, without limitation, the reaction of customers of Citrix and RingCube to the acquisition; Citrix timing and ability to successfully integrate RingCube’s technology, products, operations (including migration of RingCube to Citrix systems and controls) and employees; the introduction of new products and technology by competitors or the entry of new competitors into the markets for Citrix and RingCube products and technology; the failure by Citrix to retain key employees of RingCube; failure to further develop and successfully market RingCube’s technology and products, including failure to execute Citrix sales and marketing plans and failure to successfully partner with key distributors, resellers, OEM’s and strategic partners; failure to achieve or maintain anticipated revenues and operating performance contributions from RingCube; the impact of the global economy and uncertainty in the IT spending environment, including Citrix European markets; the success and growth of the company’s product lines, including risks associated with successfully introducing new products into Citrix distribution channels; the company’s product concentration and its ability to develop and commercialize new products and services while maintaining sales of its established products; disruptions due to changes in key personnel and succession risks; seasonal fluctuations in the company’s business; the company’s reliance on and the success of partners for the marketing and distribution of the company’s products; the company’s ability to maintain and expand its business in small sized and large enterprise accounts; the size, timing and recognition of revenue from significant orders; the success of investments in its product groups, foreign operations and vertical and geographic markets; the management of anticipated future growth; the recruitment and retention of qualified employees; risks in effectively controlling operating expenses, including failure to manage unexpected expenses; the effect of new accounting pronouncements on revenue and expense recognition; litigation and disputes, including challenges to our intellectual property rights or allegations of infringement of the intellectual property rights of others; the inability to further innovate our technology or enter into new businesses due to the intellectual property rights of others; changes in the company’s pricing and licensing models, promotional programs and product mix, all of which may impact Citrix revenue recognition or those of its competitors; charges in the event of the impairment of assets acquired through business combinations, investments or licenses; competition, international market readiness and execution risks; unanticipated changes in tax rates or exposure to additional tax liabilities; risks of political and social turmoil and 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.

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