2011 South African Data Centre Green Excellence Award in Technology Innovation Cybernest 2013 2012 Global Web Conferencing Services Growth Leadership Award 2011 Frost & Sullivan 1 We Accelerate Growth
Growth Leadership Award Web Conferencing Services Global, 2012 Frost & Sullivan s Global Research Platform Frost & Sullivan is in its 50th year in business with a global research organization of 1,800analysts and consultants who monitor more than 300 industries and 250,000 companies. The company s research philosophy originates with the CEO s360-degree Perspective, which serves as the foundation of its TEAM Research methodology. Thisuniqueapproach enables us to determine how best-in-classcompanies worldwide manage growth, innovation and leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to presentthe 2012 Global Growth Leadership Awardin Web Conferencing Services to Citrix, for its product, GoToMeeting. Key Industry Challenges Frost & Sullivan recognizes that user demand for web conferencing is growing at a strong pace, indicating that web conferencing is going mainstream. Web conferencing adoption has increased significantly as companies seek greater savings on travel costs and look to implement efficient collaboration across geographically dispersed teams. However, market expansion and maturity present a number of challenges to vendors that are vying to increase and defend their market shares. More specifically, end user demands are causing growing price competition. New business models are reshaping the landscape to pose challenges for established market leaders. According to Frost & Sullivan s research, the global web conferencing market, which includes hosted and on-premises web conferencing, grew at 9.0 percent in 2011 to reach $1.62 billion in revenue. Web conferencing revenue will show a healthy compound annual growth rate (CAGR) from 2011 to 2016 of 12.0 percent to reach $2.86 billion by 2016. Frost & Sullivan finds that end users need better user experience, mobility enhancements, and robust video integration. Hosted services is the dominant model contributing 81.1 percent of total web conferencing revenue. While user demand is growing rapidly revenue growth in web conferencing hosted services is starting to slow down due to increased market maturity and impact of declining prices. End user concerns about ease of use and simplicity along with lack of a strong use case for mainstream communications have kept web conferencing adoption restrained. Citrix addresses key user pain points associated with ease of use, simple pricing, and ease of delivery to clearly communicate their value proposition to customers. In addition by seamlessly incorporating video into the GoToMeetingonline meeting experience, Citrix has addressed many challenges users face in regards to connecting distributed and mobile workers. More importantly, Citrix s ability to address specific business problems with custom vertical applications and deeper integrations within business applications are key. 2013 Frost & Sullivan 1 We Accelerate Growth
Holding a growth leadership position puts Citrix in a favorable position to increase its footprint and share in the market. Moreover, Frost & Sullivan research shows that growth leadership validates Citrix s ability to meet the current as well as emerging demands. Growth Leadership Award The Frost & Sullivan Growth Leadership Award is a prestigious recognition of Citrix s accomplishments in the Web Conferencing Services Market. As an unbiased, third-party, Frost & Sullivan recognizes Citrix for delivering excellence and best practices in their respective endeavors. The Growth Leadership Award is backed by extensive analysis; companies identified, and the annual compound growth rates are monitored and evaluated through primary analyst research. This stringent methodology positions Citrix as a superior market participant. Best Practice Award Analysis for Citrix The Frost & Sullivan Award for Growth Leadership is presented to the company that has demonstrated excellence in capturing the highest annual compound growth rate for the last three years. Citrix s Performance in Web Conferencing Market Citrix, led by GoToMeeting, is one of the fastest-growing web conferencing SaaS providers today. Frost & Sullivan s research shows that in 2011, Citrix continued to grow at a rapid pace and increased its market share significantly to reach 16.8 percent revenue market share. Its growth momentum continues unabated in 2012. Citrix reported 33 percent revenue growth for its collaboration and data sharing products in Q2 2012. In 2011, Citrix earned $430.2M in online services, with its web collaboration products representing more than 50 percent of total SaaS revenues. The accelerated growth not only strengthened Citrix s position and market share in web conferencing hosted services but also helped it push past Microsoft to move to number two ranking in revenue market shares in the total web conferencing market, which includes hosted services and onpremises software. Key Performance Drivers for Citrix Citrix s strong focus on creating easy to use and affordable web collaboration services has been a key factor in its ability to continue its growth momentum. In 2011 and 2012, Citrix rapidly expanded its portfolio of offerings and now offers a vast array of solutions that include end-to-end meeting and collaboration solutions. Recent developments in web conferencing have focused on three key trends social, mobile, and video. These trends are increasingly getting intertwined along with a 2013 Frost & Sullivan 2 We Accelerate Growth
continued focus on improving the user experience. Citrix s product developments have honed in on all three areas to deliver leading enhancements. Factor 1: Strong Value Proposition The dominant theme for Citrix and its collaboration solutions has been focused on delivering user-friendly and intuitive services at attractive price points. Citrix has gained significant revenue growth and installed base in the SMB sector, a segment that market leaders like Cisco and Microsoft are eyeing to capitalize on growth opportunities. The availability of HDFacesvideoconferencing and several mobile enhancements has aided its growth among its core SMB user base. Frost & Sullivan s analysis shows that with a broadening product portfolio, Citrix is now well positioned to address user needs in the enterprise market. Additionally, a key factor for Citrix s success has been its very effective marketing and media campaigns that have created tremendous awareness for the GoToMeeting brand among organizations of all size.in addition to creating awareness for GoToMeeting, these campaigns have also helped educate users around the value of Web conferencing. Citrix has focused on expanding its footprint globally. Its acquisition on Netviewer has provided a stronger portfolio to users in the European markets. It is now expanding its channels globally and has recently announced a partnership with Shanghai Telecom to offer GoToMeeting with HDFaces to customers in China. Factor 2: Fast Growing Solutions Portfolio Web conferencing solutions are morphing from point meeting applications to social and collaborative workspaces that offer end-to-end meeting and project-management capabilities integrated with presence and multi-modal communications. With this shift the market is seeing the emergence of larger collaboration products that will be integrated with business applications and processes. Citrix recognized this trend early on. It revved up its acquisition engine to expand its market reach beyond point meeting applications. Citrix made two critical acquisitions in 2011 Podio and ShareFile. Podio and GoToMeeting integration offer a collaborative work platform which supports team work in a social setting, by adding apps that provide context, work flow, file sharing, tasks, and activity steams. Frost & Sullivan notes that with the addition of ShareFile and Podio, Citrix users can now share content and get teambased work done in a social setting. These acquisitions position Citrix well in the broader collaboration space. Its expeditious integration of acquired technologies, within a matter of few months after the acquisitions closed, has helped it grow sales. By continually enhancing its collaboration portfolio Citrix is addressing emerging demands and allowing customers to deploy web conferencing more pervasively. 2013 Frost & Sullivan 3 We Accelerate Growth
Factor 3: Growing Focus on Mobility and Video Citrix recently announced the expansion of its growing line of mobile workforce solutions with the new Citrix Me@Work mobile app family. This new family of core mobile apps will address the key functions required for end user mobility, with the security and control businesses require. As part of the Citrix Me@Work family Citrix now offers the ability to host meetings from mobile devices with the new GoToMeetingiPad Presenter Mode. In addition, the new GoToMeeting for ipad offers the ability to present and host content from multiple cloud storage systems including Citrix ShareFile and Dropbox through native integrations and the built-in web browser. Citrix has also seen tremendous traction for HDFaces videoconferencing for GoToMeeting users. Frost & Sullivan s competitive benchmarking confirms that the mobility enhancements combined with HDFaces video is offering a richer user experience to Citrix customers. Conclusion In Frost & Sullivan s opinion, Citrix has effectively leveraged its expertise in the web collaboration market and has achieved excellent market penetration through sound execution. Frost & Sullivan research clearly shows that Citrix is focused on simplicity and ease of use, which enables companies to save costs with online meetings. Its recent successes and market share growth is a strong indicator that the company s reach and market footprint is set to grow. Based on the aforementioned factors, Frost & Sullivan is proud to present the 2012 Global Growth Leadership Award in Web Conferencing Services to Citrix. The CEO 360-Degree Perspective TM - Visionary Platform for Growth Strategies The CEO 360-Degree Perspective model provides a clear illustration of the complex business universe in which CEOs and their management teams live today.it represents the foundation of Frost & Sullivan's global research organization and provides the basis on which companies can gain a visionary and strategic understanding of the market.the CEO 360-Degree Perspective is also a must-have requirement for the identification and analysis of best-practice performance by industry leaders. The CEO 360-Degree Perspective model enables our clients to gain a comprehensive, action-oriented understanding of market evolution and its implications for their companies growth strategies. As illustrated in Chart 1 below, the following six-step process outlines how our researchers and consultants embed the CEO 360-Degree Perspective into their analyses and recommendations. 2013 Frost & Sullivan 4 We Accelerate Growth
Chart1: The CEO's 360-Degree Perspective Model 2013 Frost & Sullivan 5 We Accelerate Growth
Critical Importance of TEAM Research Frost & Sullivan s TEAM Research methodology represents the analytical rigor of our research process. It offers a 360-degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research methodologies. Our experience has shown over the years that companies too often make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T, E, A and M reflect our core technical, economic, applied(financial and best practices) and market analyses.the integration of these research disciplines into the TEAM Research methodology providesan evaluation platform for benchmarking industry players and for creating high-potential growth strategies for our clients. Chart 2: Benchmarking Performance with TEAM Research About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com. 2013 Frost & Sullivan 6 We Accelerate Growth