Citrix Partners Thrive Amid VMware vs Microsoft Hyper-V War
VMware (NYSE: VMW) and Microsoft (NASDAQ: MSFT) are locked in a virtualization and cloud computing war. Yet Citrix Systems (NASDAQ: CTXS) continues to thrive in the shadow of both companies, working closely with channel partners on mobile, cloud and virtualization initiatives. How? Citrix Channel Chief Mike Fouts offers a mid-year update to partners.
First, a little background. Citrix this week announced Q2 2012 financial results that beat Wall Street’s expectations (though some analysts were disappointed with the company’s rest-of-year revenue outlook).
Citrix Partner Progress
Fouts, meanwhile, wrote a blog describing Citrix’s progress with partners over the past six months or so. “Midway through the year, I’m happy to report that partners have exceeded our financial projections, which means partners are driving more product sales than anticipated, and therefore driving more profitability into their businesses,” Fouts asserted.
Fouts mentioned several areas of Citrix and partner success so far in 2012:
- Enablement: By the end of this year, Citrix expects to host more than 125 partner enablement and training sessions in every major city across the US, Canada and Latin America.
- Partner Bonuses: Citrix has been offering bonus margin on certain products — for instance, up to 20% of margin on XenDesktop and NetScaler throughout 2012.
- New Customer Bonus: This bonus promotion helps partners target new customers and rewards the extra effort that selling to a new customer requires.
- The Cisco-Citrix Partner Accelerator: The effort involves Cisco Virtualization eXperience Infrastructure (VXI) and Citrix XenDesktop.
- Engagement and SMB: Citrix has an internal sales team focused on SMB customers with fewer than 500 employees. Citrix field resources (sales reps, systems engineers, etc.) are NOT compensated for SMB sales, which should leave the market open for partners.
Not a One-Trick Pony
Those milestones sound promising. But perhaps Citrix’s greatest strength — aside from channel partners — is its diversity. Mobile, collaboration, virtualization and cloud services are four of the hottest IT markets at the moment. And Citrix is playing in all four pretty darn well.
As Fouts stated about a month ago, the desktop is now a service, not a device. Citrix partners apparently are cashing in on that reality.