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This posting is provided "AS IS" with no warranties, and confers no rights. The opinions expressed within are my own and should not be attributed to any other Individual, Company or the one I work for. I just happen to be a classic techie who is passionate about getting things to work as they should do (and are sometimes advertised and marketed as being able to?) and when I can I drop notes here to help others falling in to the same traps that I have fallen in to. If this has helped then please pass it on - if you feel that I have commented in error or disagree then please feel free to discuss with me either publically or privately? Cheers, Dave
Thin Clients, VDI and Linux integration from the front lines.... Raw and sometimes unedited notes based on my experiences with VMware, Thin Clients, Linux etc.

So there has been all sorts of news coming out regarding Citrix's purchase of XenSource, including the following articles below

But what has been really interesting to read this morning is that apparently Novell were wooing XenSource about 9 months ago according to Allessandro's post Novell wanted to acquire XenSource 9 months ago, but so far the two best that do put it all in perspective are:

The Truth Behind The Citrix XenSource Deal? from Michel at

With XenSource, Citrix Sees A Two-Pronged Virtualization Strategy from Information Week

Citrix is paying $300 million in Citrix stock and $200 million in cash in the fourth quarter this year to acquire fledgling XenSource, a startup with 80 employees. Part of the purchase price is intended to generate $100 million for stock options with which to attract and retain employees for a rapid ramp-up into the server and desktop virtualization markets.

XenSource is burning through $15 million a year in expenses, while garnering "a few million in revenues," according to Citrix CFO David Henshall. By adding XenSource as a new division to the company, Citrix expects to add $50 million to its revenue in 2008 while incurring expenses of $60 million to $70 million.

On the face of it, the acquisition might not look like a good deal. But Mark Templeton, president and CEO of Citrix, was undaunted. The acquisition "opens up a fantastic new market for Citrix," he said in a Wednesday morning briefing announcing the deal to financial analysts.

XenSource employs 20 in its sales and marketing departments, noted Henshall. "It's obvious we have a lot of hiring to do to add some muscle" in those areas, he said during the conference call. Templeton said XenSource "is a perfect fit" for Citrix's existing product line, and by 2009, XenSource will be adding $200 million to Citrix's revenue.

more at source...

Other Stories here.......

Provision sees Citrix shaping up against VMware

Virtual client infrastructure vendor Provision Networks sees Citrix's acquisition of virtualization vendor XenSource as a move by the server-based computing heavyweight to compete head on with VMware.

Paul Ghostine is co-founder and CEO of Provision, Ghostine described two drivers behind Citrix's acquisition of XenSource. "Firstly, Citrix has always wanted to be a platform," he began. "With [their flagship SBC product] Presentation Server, they still depend on Microsoft Terminal Services, while with Desktip Server, they've depended on a virtual infrastructure from VMware or XenSource, so now they own an entire stack."

more at source...

Will Microsoft Buy the New Citrix?

News Analysis: A Microsoft acquisition of Citrix would allow it to distance itself from the awkward GPL aspects of what XenSource does, analysts say.

Could Citrix Systems' purchase of XenSource for $500 million be a prelude to Microsoft's acquisition of Citrix? Some analysts, like Brenon Daly and his colleagues at The 451 Group, in San Francisco, think so.

"Citrix built a $1 billion-plus business on the back of its access to Microsoft source code. XenSource's exclusive access to Microsoft's forthcoming 'Viridian' hypervisor code is a key driver for this deal," he told eWEEK Aug. 15. "For Citrix, Viridian becomes the base operating system component for its next business, just as Windows Terminal Server has been for Presentation Server."

more at source...

XenSource makes Citrix likely target for Microsoft

Citrix Systems Inc.'s $500 million cash-and-stock purchase Wednesday of XenSource Inc. could spur software giant Microsoft Corp. to put Citrix, a provider of application delivery infrastructure software, on its own acquisition target list. At least that's the take of the 451 Group, which speculates that Fort Lauderdale, Fla.-based Citrix is now an acquisition target after bolstering its technology with the addition of XenSource's enterprise-grade infrastructure software. Microsoft has a long history with Citrix going back more than a decade. Last summer, the software giant extended its marketing partnership with Citrix and initiated one with XenSource. Other potential buyers of the new Citrix include Hewlett-Packard Co. and Cisco Systems Inc.

The Citrix announcement comes one day after virtualization software provider VMware Inc. skyrocketed out of the gate with a $1.1 billion IPO and was valued at an incredible $19 billion. Citrix had been struggling to improve its virtualization offerings but may have been hurt when Microsoft acquired Citrix rival Softricity Inc. in May 2006.

Competition among virtualization players has definitely intensified, and the battle isn't won yet. VMware is still the market king, but Microsoft's Viridian product, slated to ship in the third quarter of 2008, and Citrix, with its new XenSource offerings, are now viable threats. XenSource has a "crucial and growing relationship" with security giant Symantec Corp., 451 Group points out, and both XenSource and Citrix are likely "hoping VMware's IPO proves to be a distraction." —Cheryl Meyer

See Aug. 15 press release from
See Aug. 15 story on XenSource buy from
See Aug. 15 post on ZDNet
See Aug. 15 story on VMware IPO from
See July 17, 2006, press release from

Citrix and XenSource: The best offense is good defense
Filed under: Virtualization

Citrix Systems was already a wild card in the virtualization game. The longtime leader in thin client computing, clearly awakened from a slumber by VMware's launch of the Virtual Desktop Initiative last year, has been sprinting ever since to stay ahead of the threat. The acquisition of XenSource fills the remaining hole in Citrix' virtualization portfolio, allowing Citrix to go shoulder to shoulder with VMware (and soon Microsoft) on the desktop virtualization front. It also plops Citrix into the lucrative server consolidation market.

For companies thinking of pulling end-user workspaces onto server farms -- both to break the cycle of expensive client-side hardware upgrades (a move encouraged by Vista) and to keep enterprise data safely tucked away in the datacenter -- desktop virtualization has a key advantage over thin client computing: Instead of serving a standard desktop configuration to every user, it gives each user the same sort of personalized workspace we've all become accustomed to.

more at source... 

Posted on Monday, August 20, 2007 9:35 AM Citrix , Microsoft Tips , VMware and other Virtualization tools | Back to top

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