We upgrade our recommendation on
Citrix Systems Inc.
) to Outperform, ahead of its second-quarter 2012 financial
results. We believe that recent global trends toward virtualization
and cloud computing will facilitate Citrix to report solid
results.The company continues to grow as virtualization and cloud
computing becomes essential for business enterprises to reduce
costs when the economy is yet to completely come out of
As a leading provider of enterprise software with desktop
virtualization at its core, the company will benefit from the
current trend of globalization.We believe the business fundamentals
of Citrix remains intriguing as the virtualization market will
continue to flourish in the near future. The company's major
products, including XenDesktop, NetScaler, and Online
Collaboration, are precipitously generating huge revenues.
Management has provided a robust financial outlook for the rest of
Citrix is concentrating on three broad markets, such as Desktop
virtualization, Web Collaboration & Cloud Computing, and
Application Networking. As desktop virtualization has become the
top priority for any IT set-up, Citrix is introducing newer
innovative products that will facilitate business flexibility,
security, and centralized management system.
Citrix completed the acquisition of Cloud.com Inc., a leading
developer of software infrastructure platform for cloud computing
service providers.The CloudStack product suite of Cloud.com offers
an open-source platform-as-a-service environment that enables the
cloud service providers to deploy and manage scalable applications
in simplistic and cost-effective way. With Cloud.com in its kitty,
Citrix is now comfortably placed at par with cloud computing
CITRIX SYS INC (CTXS): Free Stock Analysis
VMWARE INC-A (VMW): Free Stock Analysis Report
To read this article on Zacks.com click here.