We upgrade our recommendation on Citrix Systems Inc. ( CTXS ) 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 recession.
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 2012.
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 software leader VMware Inc. ( VMW ).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.