skip to main content
Close Icon We use cookies to improve your website experience.  To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy.  By continuing to use the website, you consent to our use of cookies.
Global Search Configuration

Ovum view


Transformation of the end-user computing (EUC) market is driving a new wave of innovation in the industry. Under Mark Templeton's guidance, Citrix Systems has been a leading, visionary vendor over the past 20 years, delivering solutions to support the concept of anywhere, anytime, any-device user access.

Product and license revenues are lower, but cloud services revenues are up

Citrix Systems made three major announcements on July 29, 2015. The first was the release of its second quarter 2015 results. A year-on-year comparison showed that product and license revenue had decreased 12%, but cloud services revenue had increased 11%. This shift in how software is purchased corresponds with the findings of the recent Ovum Data Center Survey 2015, which show that on average, 46% of applications/services are delivered internally from "owned" products. Cloud services are the second most popular option, with 20% market penetration. However, this mix is set to change over the next three years. For example, the survey predicts ERP solutions moving from 71% internally deployed in 2015 to 50% internally deployed in 2018, with cloud services being the big winners.

Citrix's results clearly show that cloud services will drive its revenue growth. Analysis of Citrix's figures shows that if cloud services are excluded, it posted a decline in quarterly revenue (Americas up 1%, EMEA flat, Asia-Pacific down 8%), whereas overall, it posted 8% revenue growth for the quarter.

In a second announcement, Citrix reported that Mark Templeton will retire once a successor has been found. Ovum regards Templeton as one of the industry's most respected visionaries, having transformed Citrix over the past 20 years. The third announcement was a cooperation agreement with Elliott Management Corporation, an investment firm that owns 7.5% of Citrix's stock. Ovum believes this will inject fresh thinking in terms of how Citrix can exploit this growth in cloud services, and will enable a stable transition from the Templeton era.


Further reading

Evaluation of Core Desktop Virtualization Technologies in 2015, IT0022-000330 (April 2015)


Roy Illsley, Principal Analyst, Infrastructure Solutions

Recommended Articles

  • Consumer & Entertainment Services

    US pay TV: Is it facing an existential threat?

    By Adam Thomas 28 Mar 2018

    With US pay TV having endured the worst year in its history, thoughts have inevitably turned to the future. The likelihood remains that the immediate future will remain highly uncomfortable for everyone except the scaled multinational digital platforms.

  • Enterprise Decision Maker, Enterprise IT Strategy and Select...

    2017 Trends to Watch: Big Data

    By Tony Baer 21 Nov 2016

    The breakout use case for big data will be fast data. The Internet of Things (IoT) is increasing the urgency for enterprises to embrace real-time streaming analytics, as use cases from mobile devices and sensors become compelling to a wide range of industry sectors.

    Topics Big data and analytics IoT

  • Enterprise Services

    5G: Another technology in search of enterprise use cases

    By Evan Kirchheimer 26 Apr 2018

    Service provider interest in justifying 5G investment through its potential to open new revenue streams from the enterprise segment is growing ever greater.


Have any questions? Speak to a Specialist

Europe, Middle East & Africa team - +44 (0) 207 017 7700

Asia-Pacific team - +61 (0)3 960 16700

US team - +1 646 957 8878

Email us at

You can also contact your named/allocated Client Services Executive using their direct dial.
PR enquiries - Call us at +44 788 597 5160 or email us at

Contact marketing -

Already an Ovum client? Login to the Knowledge Center now