Citrix Systems (CTXS - Free Report) recently announced that Lucid Technologies selected its Virtual Apps and Desktops service on Microsoft’s (MSFT - Free Report) Azure to facilitate a simplified remote working experience for its employees and improve work productivity.
Markedly, the combination of Citrix Cloud and Microsoft Azure enables customers to make the most of Citrix’s new virtual resources and benefit from improved elasticity and agility, adjusting usage as need be.
Employees of Lucid can now gain access to all apps and tools they require for a unified experience by utilizing Virtual Apps and Desktop platform. The desktop virtualization solution will automatically implement varying security measures to safeguard the data stored on the devices used by employees.
To foster better communications among employees, the solution also provides access to Microsoft’s video communication app, Teams as well as its office productivity suite Microsoft 365.
Prior to Lucid Technologies, the company’s Virtual Apps and Desktops were deployed by Altamaha Bank & Trust as well as Jordan Kuwait Bank to enable employees to deliver financial services uninterruptedly.
Citrix is benefiting from robust uptake of unified workspace solutions driven by coronavirus crisis-triggered demand for reliable and secure work-from-home solutions. This is expected to drive revenues in the quarters ahead and boost investors’ optimism in the stock.
Notably, shares of Citrix have rallied 24.6% year to date compared with the industry’s rise of 30.1%.
Opportunities Galore in Desktop Virtualization Market
The ongoing work-from-home trend, amid surge in coronavirus cases and no vaccine in sight, is unlikely to abate any time soon. In this regard, the demand for secure solutions that assist in managing all tasks pertaining to remote work is likely to increase among enterprises looking to enhance productivity amid lockdowns.
Centralized management of employee desktops provides greater security, control and cost savings for organizations. As a result, Citrix’s desktop virtualisation offerings are expected to witness steady demand in the upcoming quarters.
Per Mordor Intelligence data, the desktop virtualization market is projected to hit $10.84 billion by 2025 from $6.1 billion in 2019 at a CAGR of 10.79% from 2020 to 2025. Apart from COVID-19 crisis, rapid proliferation of cloud computing along with surge in Bring Your Own Devices (BYOD) at workplace is fuelling growth of desktop virtualisation market, added the report.
Moreover, growing adoption of its solutions is likely to expand the company’s footprint in the lucrative Digital Workplace market. Per KBV Research data, the market is expected to witness a CAGR of 21.5% between 2020 and 2026.
Boosting Capabilities Favors Growth Prospects
Citrix is leaving no stone unturned to capitalize on the fast-changing workspace requirements stemming from the ongoing pandemic.
In July, the company expanded its partnership with Microsoft to move its on-premise customers onto Microsoft’s Azure cloud platform. This will enable employees to work from anywhere and on any device.
Moreover, the companies’ joint offerings, which include Citrix Workspace, Citrix SD-WAN, Microsoft 365 and Microsoft Azure, will be used to enhance the overall remote work experience of employees. In turn, Microsoft selected Citrix’s Workspace platform as its preferred digital workspace solution
Prior to that, Citrix partnered with Upwork and unveiled new Upwork Talent Solution with Citrix Workspace solution, which will be available through Citrix Service Provider and Solution Advisor A2K Partners. The solution will offer easy access to a large pool of professional talent, secure remote infrastructure for the quick onboarding of talent and a flexible, pay-as-you-go model, among others.
In May, the company announced the extension of its Remote PC Access solution to the cloud and made it available as part of Citrix Desktop Essentials and Citrix Desktop Service. It has also introduced Citrix Analytics for Performance to aid IT administrators assess and address system performance concerns to boost employees’ efficiency.
As part of its continuing alliance with Google, the company also extended the application of ShareFile workflows and connectors to G-Suite and Google Drive. Moreover, the company has deployed its Cloud services including XenDesktop and XenApp on Oracle Cloud Marketplace. This is likely to lead to customer additions and generate incremental revenues.
Also, the company’s efforts to augment the security facilities of its offerings amid increasing threat of cyber-attacks augurs well. Citrix collaborated with Check Point Software Technologies to unveil next-gen firewalls within Citrix SD-WAN. The company also added Citrix Web App and API Protection security service for customers using apps and APIs in multi-cloud environment.
Citrix is well positioned to benefit from the ever evolving workplace needs during these uncertain times.
Nevertheless, increasing investments on portfolio expansion and product enhancements, amid stiff competition from VMware's Horizon, Workspace ONE, and AirWatch offerings and Amazon Web Service’s Amazon WorkSpaces; are anticipated to put pressure on margins in the near term.
Zacks Rank & Key Picks
Citrix currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the broader sector are Jabil (JBL - Free Report) and Zoom Video Communications (ZM - Free Report) , both flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Blackbaud and Zoom Video is currently pegged at 12% and 25%, respectively.
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