Citrix Systems Inc.
), which offers cloud computing service to PC and laptop users, has
turned its focus toward mobile computing with the launch of
GoToAssist application for iPhones and Android-based handsets.
As smartphone and tablet usage is gaining momentum in the
corporate world, the need for virtual network in mobile phone is
also expanding. The GoToAssist application will enable smartphone
users to host virtual meeting as well as send and receive official
files. Moreover, the availability of Citrix's popular GoToMeeting
video conferencing application in the iPad tablets will further
boost the company's cloud computing solutions.
The company also launched another mobile application service
called CloudGateway2 that provides Windows, web, software delivery,
mobile applications and data to any device, anywhere. CloudGateway2
also facilitates data access policies, determine the best possible
applications that can be utilized by users in varied locations.
We believe that the launch of GoToAssist application for
smartphone users coupled with huge growth opportunity in
virtualization and cloud computing market, given Desktop
virtualization will touch the 100 million personal computers mark
by 2013, and the web conferencing market size will likely touch $4
billion by 2014, will act as a positive catalyst for the company
However, the ongoing macroeconomic uncertainty may act as a
headwind for the company as it restricts several firms from their
targeted IT spending. Additionally, high cost associated with
virtualization may restrict the long-term prospect of Citrix.
Finally, increased competition from
) provides certain downside risks for the company.
Considering these factors, we maintain our long-term Neutral
recommendation on Citrix systems. Currently, Citrix Systems has a
Zacks #2 Rank, implying a short-term Buy rating on the stock.
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