Citrix Systems (CTXS - Free Report) is leaving no stone unturned to capitalize on increasing popularity of enterprise workspace productivity solutions.
On the back of ongoing workspace trends of Bring Your Own Devices (BYOD) and increasing number of mobile workers, the company is anticipated to benefit from strength in its desktop virtualization solutions.
Moreover, rise in enterprise spend on workspace productivity solutions from small and medium enterprises, healthcare companies and increasing demand across Asia-Pacific remain tailwinds.
As Citrix prioritizes transition to the cloud, it is expected to witness a higher mix of product bookings that are subscription based. With an aim to capitalize on this vertical, the company is making every effort to enhance subscription offerings, which favors adoption.
In fact, Citrix SD-WAN solution was selected by Custom Molded Products (CMP), to boost network performance of digital workspaces. Further, San Francisco 49ers football team implemented Citrix’s digital workspace solutions to provide an engaging fan experience.
Robust adoption of the company’s Subscription services is expected to favor the top line in the days ahead.
Strategic Initiatives Favor Business Prospects
Citrix is expected to benefit from strategic alliances, synergies from buyouts, and addition of innovative capabilities.
The company collaborated with Palo Alto Networks (PANW - Free Report) , notable cybersecurity company, to facilitate deployment of firewalls in Citrix SD-WAN, empowering customers with robust security capabilities. This is likely to lead to new customer additions, consequently generating incremental revenues favoring the top line.
Moreover, solid adoption of unified workspace solutions and hybrid cloud offerings hold promise. Furthermore, traction witnessed by ShareFile deserves a special mention.
Per Mordor Intelligence data, the desktop virtualization market is projected to reach $9.78 billion by 2024 from $5.51 billion valued in 2018 at a CAGR of 10.79% between 2019 and 2024. The growth projection reinforces Citrix’s efforts in this domain.
Additionally, acquisitions of Cedexis and Sapho remain noteworthy. The buyouts are expected to aid Citrix in enhancing Workspace suite with guided work capabilities and traffic management functionalities.
Increasing investments on portfolio expansion, product enhancements and strategic acquisitions are likely to weigh on margin expansion, at least in the near term.
Moreover, Citrix is facing increased competition in the desktop virtualization market. For instance, Citrix Workspace solutions compete with VMware's (VMW - Free Report) Horizon, Workspace ONE, and AirWatch offerings and Amazon Web Service’s (AWS) Amazon WorkSpaces, and Microsoft (MSFT - Free Report) particularly post the acquisition of FSLogix, among others.
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