Rapidly Growing Citrix Service Provider Channel Offers Differentiated Cloud-hosted Virtual Desktops

Citrix (NASDAQ:CTXS) today announced it has added two partners, Digicel Group and OneNeck® IT Services, to its rapidly growing service provider channel. Digicel Group and OneNeck have launched cloud-hosted virtual desktop services built on the industry-leading Citrix XenDesktop® and Citrix XenApp®, allowing them to provide unique, differentiated services to enable mobility for small and mid-sized businesses. The Citrix Service Provider (CSP) channel is an extension of the company’s leadership in on-premise and cloud-hosted desktop virtualization, and has surpassed 2,600 partners. Because these partners are building services on Citrix technology and service provider reference architecture, they are able to offer highly differentiated cloud-hosted desktops and applications delivered on a subscription basis to businesses looking to go mobile and enable bring-your-own (BYO) device programs.

Enabling Business Mobility for SMBs

Small and mid-sized businesses are responding to market forces facing all companies: How to enable a mobile workforce while addressing the growing user demands for flexibility and device choice. Yet, these businesses often have little or no IT staff or datacenter infrastructure, so service providers – from large telcos to regional managed service providers – are responding to these needs by developing hosted cloud services. These services, including hosted applications, desktops and device management programs, are built on Citrix desktop virtualization and MDM solutions, and priced using monthly pay-as-you-go licensing. This allows SMBs to access a robust, flexible IT infrastructure without having to make large capital and personnel investments.

According to Gartner, “HVD [Hosted Virtual Desktops] suit many SMBs as it requires fewer IT staff, servers, software administrators and dedicated network connections. The elimination of these factors significantly reduces business overhead and delivers dramatic elimination of many IT costs. As an additional bonus, new users can be enabled quickly — often within minutes.” In the same 2012 survey report, Gartner found that “approximately 43 percent of SMBs are already deploying HVDs.” 1

Citrix Service Providers Generate Differentiated Value

Through the CSP program, service providers are able to develop unique and differentiated services using the Citrix multi-tenant hosted service provider reference architecture. CSPs are building high-value pay-as-you-go desktop hosting businesses serving small and medium businesses in industry verticals such as healthcare, public sector and legal. They are able to generate significant customer value by delivering IT services from the cloud – traditionally reserved for large enterprises with more resources – at predictable monthly fees.

CSP partner, Digicel Business, a tier-one telco provider with over 13 million customers across the Caribbean, Central America and Asia Pacific, launched Digicel “Desktop as a Service” in September 2013. Digicel Desktop as a Service is a scalable service that allows small businesses and local government entities to use a cloud-hosted desktop environment to deliver business applications, including Microsoft Office, across multiple devices. Customers can also control the security of their businesses’ information on employee mobile devices with mobile device management. Digicel Mobile Device Management enables completely secure access to any business application, using any device.

“Digicel’s new Desktop as a Service offering enables businesses to go mobile and develop “bring your own device” programs without the need for large capital investments. We are the first regional telecommunications company outside of the U.S. to offer these services as part of the Citrix Service Provider program. This levels the playing field for small and medium-sized businesses across the Caribbean by providing them market-leading technology on an affordable and scalable basis,” said Tom Carson, CEO of Digicel Business.

Arizona-based CSP partner, OneNeck, a subsidiary of Telephone and Data Systems (NYSE: TDS), a Fortune 500 company, is a leading enterprise managed hosting services provider. OneNeck is a Citrix Diamond partner. The company provides cloud-hosted virtual desktops and applications for its customers, primarily in the retail, manufacturing and financial services sectors, including Regency Lighting, a lighting distribution company with 300 employees and seven U.S. locations.

“OneNeck has been our technology provider for several years and we rely on their expertise to guide us through the right technology decisions. We chose a hosted desktop service from OneNeck in order to ease administration and deployment of desktops,” said Jesus V. Arriaga, vice president of IT, Regency Lighting.

“The technology-based business solutions Citrix is providing to OneNeck through the CSP program helps us differentiate our hosted desktop service. OneNeck’s Desktop as a Service solution enables our customers to securely access their company data and resources on virtually any device, from anywhere, at any time. Essentially, all employee desktops are centrally provisioned which means our customers can enjoy cost savings and the ability to quickly adjust to changing business requirements,” said Chuck Vermillion, CEO of OneNeck.

“Citrix has been growing our service provider channel for five plus years, far surpassing our competitors in strength, scale and vertical reach. The CSP program provides an important route to market for our desktop virtualization business, creates high-value business models for our partners, and unsurpassed flexibility and capabilities for end customers, many of whom do not have the resources to build their own IT infrastructure,” said Calvin Hsu, vice president of product marketing, Desktops and Apps at Citrix.

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About Citrix

Citrix (NASDAQ:CTXS) is a cloud company that enables mobile workstyles—empowering people to work and collaborate from anywhere, securely accessing apps and data on any of the latest devices, as easily as they would in their own office. Citrix solutions help IT and service providers build clouds, leveraging virtualization and networking technologies to deliver high-performance, elastic and cost-effective cloud services. With market-leading cloud solutions for mobility, desktop virtualization, networking, cloud platforms, collaboration and data sharing, Citrix helps organizations of all sizes achieve the speed and agility necessary to succeed in a mobile and dynamic world. Citrix products are in use at more than 330,000 organizations and by over 100 million users globally. Annual revenue in 2012 was $2.59 billion. 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, including in revenue growth and recognition of revenue, products and services, their development and distribution, product demand and pipeline, economic and competitive factors, including risks associated with international growth and IT consolidation, 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.

Citrix®, XenDesktop® and XenApp® 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.

1 Source: Gartner, “BYOD and Virtualization in SMBs,” Meike Escherich, April 2013

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