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Rumors of IBM or Cisco buying Citrix?

Written on Apr 09 2008 8,870 views, 23 comments


by Brian Madden

The markets are buzzing today on the rumor (here and here, for example), that either IBM or Cisco might try to buy Citrix. Of course the world is full of rumors, but there's at least anecdotal evidence that people are listening to this one as Citrix's stock moved up about 7% today, which is the biggest single-day move they've had in a while. (Although half-way through the day the stock has dropped about half that new value.)

Personally I would love to see a company like Cisco buy Citrix. (I've written about this a few times over the years, as far back as November 2005.) The short version of the story is that Cisco, as a networking company, is clawing their way up the networking stack to the more value-add stuff. But you can only take "networking" so far before you get into the "application" space. (Cisco's application-oriented networking shows some of their thinking, although that's largely around web apps.)

Of course the business world runs on Windows apps today, and that is Citrix's space. And Citrix can do amazing things when they combine SSL-VPN + Windows apps. (Read the "Smart Access" section of this article.) And Citrix will inevitably be able to do amazing with WAN acceleration + Windows apps. And then there's the whole NetScaler thing. And the XenServer thing. Actually, why wouldn't Cisco want Citrix?

As for IBM buying Citrix? Um, I'm less excited about that. To me, IBM is where good companies go to die.



Comments

Guest wrote And project Kent...to the big IBM software graveyard in the sky!!
on 04-09-2008 2:37 PM

IBM is where good companies go to die

Not just companies, but Citrix projects too....not so long ago Citrix were hyping Project Kent...now its a dead and buried part of some IBM business continuity initiative that no-one knows about.

What did the AdProd guys have to say about that one?

Guest wrote Re: And project Kent...to the big IBM software graveyard in the sky!!
on 04-09-2008 2:42 PM

In fairness every company has projects which don't turn out to be successful.  So I don't see your point here.

Brian was referring to the company in general.

Guest wrote Re: And project Kent...to the big IBM software graveyard in the sky!!
on 04-09-2008 2:45 PM
Actually, I dont see my point either. :-)  Just wanted to see the cowardly Lion again.
Guest wrote Re: And project Kent...to the big IBM software graveyard in the sky!!
on 04-09-2008 2:52 PM

Actually, heres a better point which kinda falls into this category.

I good few years back I worked for a company called Data General, we were pretty big and made big Windows servers, Unix servers and some proprietary stuff called AOS/VS. Along with all of this we developed some neat disk array technology called Clariion.

We were bought out by a very large and well known SAN vendor who assimilated the array technology and threw away everything else we stood for, and we had some pretty good stuff, and people!!

Now, this is called business, but which pieces of Citrix will be left after the takeover vultures have picked over the bones of the Citrix product portfolio?

Guest wrote AON URL is wrong
on 04-09-2008 5:28 PM
The AON URL should be http://www.cisco.com/go/aon as opposed to http://www.citrix.com/go/aon
Brian Madden wrote Re: AON URL is wrong
on 04-09-2008 5:38 PM
Whoops! Fixed now. The original title of this article was also "Rumors of IBM or Citrix buying Citrix"
Guest wrote Makes no sense
on 04-09-2008 8:38 PM

Why would IBM or Cisco buy Citrix? I see completely NO REASON for it. Citrix right now is a software house of rather outdated and out-did pieces such as Access Gateway (pales in comparison with Juniper or Cisco), Presentation Server (Sooooooo old), ICA protocol (invented 15 years ago and great when we were using dialup but WAY OUT OF DATE for everpresent multimedia). The only piece really worth the effort is Xen. But then again, with KVM so much more promising that Xen why would anyone bother????

buh bye Citrix.  

Jason Conomos wrote Re: Makes no sense
on 04-09-2008 11:12 PM

The point you are missing is that whilst Juniper or Cisco have better single solutions that Citrix, as a package, if you have a Presentation Server and wants to make ACL's on your VPN concentrator, why not buy Citrix Access Gateway?  Then you unlock the potential of a full solution rather than a single device doing just one thing.

 Also in relation to ICA, um, please elaborate.  It performs better than RDP in multimedia and it is more resiliant in most if not all circumstances and has heaps of white papers backing this up.  So that I do not agree with and I think that your post is quite ill-informed.

 But in relation to either Cisco or IBM buying Citrix, the Citrix business model does not suite either of those two companies from what I can see in what they deliver and operate.

Kata Tank wrote and Microsoft ?
on 04-10-2008 1:19 AM
Do you think Microsoft could let Citrix get out and go to "competitors" like Cisco or IBM ? There's so late in virtualization and Citrix is selling for them so much things that I bet Citrix, before to be sold to somebody will do a Microsoft round...
Stefan Nguyen wrote Microsoft is busy playing with Yahoo acquisition!
on 04-10-2008 7:53 AM

Even though Microsoft wouldn't be happy to see Citrix bought by huge vendors like Cisco/IBM but you know they are trying to acquire Yahoo with large amount of money involve and busy with they strategic plan so no ways they will take over Citrix and especially when they have Windows 2008 RemoteApp which is really nice piece and Hyper_V unless they need to compete with VMware.  Microsoft is limited to two hands and they can't grab everybody out there. 

I would like to see Cisco take over Citrix and expand their virtualization XenEnterprise products Citrix suites to be more competitive with VDI & virtualization market. Also spend tons of money on R&D efforts to revamp or work on new ideas and products that will eventually be "THE" center for all.  (management, security, load balancing solutions specifically to virtualization such as vKernel, Akorri, Expand Networks, Riverbed, Nessus, Catbird, vmSight etc..

Guest wrote Dizzy
on 04-10-2008 9:18 AM

Oh, aren't things so confusing and complicated these days!

Everything gets so tangled up! :)

Guest wrote Don't buy it
on 04-10-2008 10:11 AM
I for one don't buy it, IBM is working on a Xen offering and will soon compete in this market, they have management tools up the wazoo, as we all know virtualization means nothing without automation and IBM will deliver. Cisco is trying to move into the app space, but buying XenApp, XenServer, and Sendesktop... The networking products however (netscaler, application firewall, wanscaler an their ssl vpn solution) might make more sense...
Guest wrote Cost
on 04-11-2008 7:28 AM
How much do people think IBM, Cisco, MS or whoever would have to stump up to buy Citrix?
Guest wrote Re: Cost
on 04-11-2008 9:56 AM

"But even at what seems like a bargain price, Citrix isn't cheap: With a market cap of $6 billion and expected revenue growth of 17% to $1.63 billion this year, the stock could command a fair premium, taking the potential buyout price north of $7 billion, assuming a premium of 15%"

 http://www.thestreet.com/_yahoo/newsanalysis/techsoftware/10411306.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA

Maybe Brian can get a collection going at BriForum :-)

Guest wrote SAP
on 04-11-2008 11:09 PM
Our Citrix SE told us that internally they were afraid that SAP might buy them. Something to do with SAP not being happy with the supposed "loss of focus" on terminal services.
Guest wrote Re: Hot Topic
on 04-12-2008 10:43 AM
I know Kevin Magee - what did he have to say about Citrix?
that page is no longer available
Guest wrote Project Kent is alive
on 04-12-2008 11:20 AM
Actually, IBM is doling the Project Kent piece to clients as we speak.
Guest wrote IBM - Such a shame
on 04-13-2008 8:36 PM

IBM is where good companies go to die? Such a shame. We owe much of our current technology today to IBM. They pioneered the industry that let to the PCs you and I are using right now. Also, they have had a few employees over the years who have won Nobel prizes in Physics while working for them. It's sad to say how history have repaid them.


Guest wrote Re: IBM - Such a shame
on 04-17-2008 4:20 AM
um.. i don't think a great deal of people other than your average blogger flack a-la Brian Madden does think so. Hence i wouldn't shed too many tears...
Guest wrote Re: IBM - Such a shame
on 04-17-2008 9:10 AM

um.. i don't think a great deal of people other than your average blogger flack a-la Brian Madden does think so. Hence i wouldn't shed too many tears...

?huh? Can guest above explain what this means?

..And Brian any chance you can disable anonymous comments to the website

Rgds, Mr Anon

Jason Conomos wrote Re: Don't buy it
on 04-20-2008 11:26 PM

Cisco already have similar products.  Comparisons are WanScaler to Cisco WAAS, CAG (SSL VPN Concentrator) to the Cisco ASA (which can have SSL VPN) just to name a few.  I could not figure out why Cisco would want to double up on what they already have unless they buy a portion of the company?

James Diehl wrote MS purchase?
on 04-22-2008 9:41 AM
A MS buyout of Citrix has been rumored on and off for years and years.  But recent events make me think this may actually happen:1. Name changes for Terminal Services and PS - MS changes name of TS to “Presentation Server”...and Citrix changes name from PS to Xen...anyone think the timing of this is interesting?2. Xen Virtualization technology - Even with HyperV, I'm sure MS would love to get their hands on Xen, to help compete against VMware. From what I understand, HyperV enabled servers will be able to run Xen Server VM's, and the forthcoming MS VMM will allow one to manage both Xen and HyperV VM's (and VMware too)...seems that some interoperability already is in place. 3. Possible that the Yahoo buyout is just a cover for another buyout (i.e. Citrix) ? Not sure about this...but maybe if the Yahoo buyout is indeed just a distraction or falls through would Citrix will be a logical choice for acquisition?

Of course, this is all pure speculation. One could easily make an argument against this...just throwing around some thoughts.

Cheers!