Decline of outsourcing lifts Citrix

The decline of state and federal big-bang outsourcing deals, along with IT operations budgets, appears to be yielding substantial dividends for middleweight players in the enterprise and government IT markets.

Citrix, a thin client and access infrastructure provider, says a 39 percent, half-year revenue spike can be largely attributed to the break up of notorious public sector clusters leaving CIOs and IT managers finally free to choose from a range of solutions rather than what services companies dictate.

With outsourcers no longer able to dictate which vendors got a foot in the federal door access to potential clients in the federal space had improved markedly over the last year, Citrix's Australian vice president Gary O'Brien told Computerworld.

"Outsourcing has gone from full-blown to selective. That's really helped us out as those group contracts are broken up," he said, adding that the door has opened and it's no longer about an outsourced gatekeeper guarding the frontdoor of agencies.

O'Brien said while Citrix had recently appointed a Canberra-based Nick Cox as point man, it would continue its established relationship with distributors Express Data and Alstom, and its concurrent seat-licensing regime.

O'Brien said Citrix had bagged five new federal government deals, but he declined to give the names of the agencies. State deals, O'Brien said, included a 500-seat rollout at the NSW Office of State Revenue.

Citrix is also pushing the capabilities of ExpertCity, its recent Web-hosted services acquisition which offers remote desktop access, conferencing and helpdesk solutions.

John Burris, Citrix worldwide senior vice president of sales and services, said the ExpertCity acquisition aimed to expand Citrix's range of offerings from it traditional MetaFrame heartland into applications and hosted applications delivery solutions.

IDC software analyst Megan Dahlgren said Citrix's acquisition of ExpertCity's Web-based desktop access products would serve to extend the vendor's access infrastructure solutions beyond the traditional client/server environment aimed at desktops.

"Security is a major concern with respect to empowering the access of desktops over the Internet and the ExpertCity products are also in line with the Citrix initiative to provide secure solutions for its customers at the same time as broadening the reach of access," Dahlgren said.

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