Citrix Systems CTXS recently announced the expansion of its partnership with Microsoft MSFT. The partnership will address the needs of a rapidly-evolving work environment amid coronavirus led lockdowns.
Citrix’s Workspace platform that organizes and automates tasks needed to optimize employee performance is being adopted by Microsoft as its preferred digital workspace solution. Meanwhile, Citrix will move its on-premise customers onto Microsoft’s Azure cloud platform, which will enable employees to work from anywhere and on any device.
The companies will also offer additional tools and services to support Citrix customers’ transition to Microsoft Azure. Moreover, the companies’ joint offerings, which include Citrix SD-WAN, Citrix Workspace, Microsoft Azure and Microsoft 365, will be used to enhance the overall remote work experience of employees.
Citrix’s efforts to support remote work bode well amid coronavirus crisis induced work-from-home wave and are likely to drive adoption of its workspace offerings. This is expected to drive revenues in the quarters ahead and boost investors’ optimism in the stock.
Notably, shares of Citrix have rallied 38.6% year to date compared with the industry’s rise of 24.3%.
Citrix Systems, Inc. Price and Consensus
Remote Work Trends Hold Promise
The COVID-19 crisis has compelled governments across the world to impose lockdowns, which led to increase in work-from-home trends. Consequently, companies that lack remote work capabilities are expected to witness a loss in productivity.
Remote working seems to be growing on employees as well. Per a study conducted by International Business Machines, more than 75% pointed that they would like to continue to work remotely occasionally, while nearly 54% indicated they would like this to be their primary way of working.
In this regard, the demand for robust solutions that helps manage all of the tasks associated with remote work is likely to increase among organizations looking to boost productivity amid lockdowns. As a result, Citrix’s expanded partnership with Microsoft is expected to help the company acquire more customers in the upcoming quarters.
Moreover, growing adoption of its solutions is likely to expand the company’s footprint in the lucrative Digital Workplace market. Per Grand View Research data, the market is expected to reach $54.2 billion by 2027 at a CAGR of 11.3%.
Strengthening Capabilities to Favor Prospects
Citrix is leaving no stone unturned to capitalize on the rapidly changing workspace demands stemming from the ongoing pandemic.
Recently, the company collaborated with Upwork UPWK for the launch of the new Upwork Talent Solution with Citrix Workspace, which is designed to help companies improve productivity amid growing remote-work trends. The new offering will help businesses onboard and integrate professionals. It will provide them with remote access to company resources across all locations and devices.
Citrix also partnered with Wipro WIT and Microsoft in June to roll out a joint solution that helps customers to drive business continuity by enabling remote work and productivity, while giving employees the flexibility to work from anywhere in a safe, secure and reliable manner.
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.
Citrix’s enhanced offerings are witnessing robust momentum as an increasing number of companies have selected Citrix for their remote work needs. Recently, the company’s solutions were adopted by Gloucestershire Hospitals NHS Trust to enable its employees to work from home and continue providing essential health services.
This growing clout highlights the strength and functionality of the company’s solutions. Citrix, which currently carries a Zacks Rank #3 (Hold), is well poised to benefit from the ever evolving workplace needs during these uncertain times. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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