Cloud-Based VDI Market in Europe 2011-2015

20112015
Cloud-based VDI Market in Europe

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20112015
20112015 Cloud-based VDI Market in Europe

01. Executive Summary .............................................. 1
02. Introduction ........................................................... 2
03. Market Coverage ................................................. 3
Overview ................................................................................................................... 3
04. Market Landscape ................................................ 4
Market Forecast ....................................................................................................... 5
Five Forces Analysis ................................................................................................. 7
05. End-user Segmentation ........................................ 8
06. Vendor Landscape ............................................. 10
07. Buying Criteria ..................................................... 12
08. Market Growth Drivers ........................................ 14
09. Drivers and their Impact ..................................... 16
10. Market Challenges ............................................. 17
11. Impact of Drivers and Challenges ..................... 19
12. Market Trends ...................................................... 20
13. Key Vendor Analysis ........................................... 22
13.1 VMware Inc. ......................................................................... 22
Business Overview ................................................................................................. 22
SWOT Analysis ......................................................................................................... 23
13.2 Citrix Systems Inc. ................................................................ 24
CONTENTS

20112015
SWOT Analysis ......................................................................................................... 25
13.3 Desktone Inc. ....................................................................... 26
SWOT Analysis ......................................................................................................... 27
13.4 MokaFive Inc. ....................................................................... 28
SWOT Analysis ......................................................................................................... 29
13.5 Secure Online Desktop ....................................................... 30
SWOT Analysis ......................................................................................................... 31
14. Other Reports in this Series ................................. 32


20112015

Exhibit 1: Cloud-based VDI Market in Europe 20112015
(US$ million) ............................................................................ 5
Exhibit 2: Cloud-based VDI Storage Market in Europe
20112015 (US$ million)......................................................... 6
Exhibit 3: Cloud-based VDI Market in Europe by End-user
Segmentation 2011 .............................................................. 8

EXHIBITS

1
01. Executive Summary
Market Size
2011: US$102 million
2015: US$241 million
Growth Rate 24 percent CAGR
Key Geography Europe
Key Customer
Segments
IT Service Providers
Banking, Financial Services, and Insurance (BFSI) Sector
Education Sector
Retail Industry
Drivers
Increasing Portability of Enterprise Applications
Rising Total Ownership Costs of Enterprises
Increasing Demand for High-security Interfaces
Growing Need for Computing Resources
Challenges
Growing Complexity of Network Infrastructure
Rising Costs of Software Provisioning
Growing Data Traffic in Organizational Networks
Unstable Economic Conditions
Trends
Increasing Centralization of User Systems
Increasing Customization of User Applications
Growing Adoption of Outsourcing Model
Increased Adoption of Cloud-based Services
Key Customer Needs
Minimal Infrastructure
Simplicity
Security
Customization
Key Vendors
Citrix Systems Inc.
Desktone Inc.
Mokafive Inc.
Secure Online Desktop
VMware Inc.

2
02. Introduction
Virtual desktop infrastructure (VDI) is a practice of hosting various desktop machines on a single
virtual machine that is hosted on a centralized server. Cloud-based VDI facilitates access to
these virtual machines over the internet from any remote location. The connected systems are
managed and maintained from a central location by a vendor that provides the service. The
increasing adoption of smartphones and handheld devices for enterprise computing is giving
rise to demand for VDI.
The Cloud-based VDI market in Europe is expected to post a dynamic growth rate during the
period 20112015. This growth is mainly due to the rapid adoption of cloud-based services and
growing demand for enterprise mobility. Further, the increasing centralization of infrastructure
management in enterprises is driving the market, and it is expected to grow at a CAGR of 24
percent during the period 20112015.
Though the Cloud-based VDI market in Europe has many drivers, the main driver is the
decreasing dependency of VDI solutions on client system infrastructure. In VDI, enterprise
applications are executed on a central server and the results are displayed on the client
terminal, with no need for additional infrastructure. Further, enterprises are experiencing an
increasing need to reduce capital and operational expenses while simultaneously adopting
modern technology, which is facilitated by cloud-based VDI.
Though the Cloud-based VDI market in Europe has many drivers, the market also faces some
growth inhibitors. One of the major challenges faced by the market is the rapid growth of
technology, which is increasing the complexity of network infrastructure. Enterprises are finding it
increasingly difficult to find vendors that can efficiently provide VDI solutions that meet their
business requirements. The increasing costs associated with the licensing of enterprise software
constitute another concern in the adoption of cloud-based VDI.
Though the Cloud-based VDI market in Europe faces a few serious challenges, it is witnessing
some emerging trends that are exerting a positive influence on its growth. For instance,
enterprises are increasingly demanding solutions for the centralization of their systems. Overall,
the market is expected to grow rapidly during the forecast period, with the rapid evolution of
smartphones and incorporation of complex computing capabilities into handheld devices.

3
03. Market Coverage
Overview
This report covers the present scenario and the growth prospects of the Cloud-based VDI market
in Europe for the period 20112015. It also presents the vendor landscape and a corresponding
detailed analysis of the top five vendors in the Cloud-based VDI market in Europe. The market is
highly fragmented, with the presence of numerous small and large vendors. Therefore, the
report does not provide the market shares of the vendors; it only lists the key players in the
market. The report considers revenue generated from the issue of licenses and product services.
In addition, the report discusses the major drivers that influence the growth of the Cloud-based
VDI market in Europe. It also outlines the challenges faced by the vendors and the market at
large, as well as the key trends that are emerging in the market.


4
04. Market Landscape
The types of services that are provided by cloud-based VDI vendors in Europe are shown below:

This report covers VDI solutions in the form of software-as-a-service (SaaS) as well as desktop as a
service (DaaS) for desktop systems. Traditional VDI solutions can be deployed in the following
ways:
Through traditional local installation
Through on-premise application streaming
As on-premise solution


5
Market Forecast
The Cloud-based VDI market in Europe was valued at US$102 million in 2011 and is expected to
reach US$241 million by 2015, growing at a CAGR of 24 percent.
Exhibit 1: Cloud-based VDI Market in Europe 20112015 (US$ million)
Source: TechNavio Analysis
The rising need of enterprises for resources and stability has created the need for VDI solutions
that are easily available and accessible. To meet these business requirements, enterprises are
nowadays moving toward cloud-based services. Enterprises that adopt VDI solutions can avail of
the additional features of cloud-based services along with VDI, thus accelerating the adoption
of VDI among enterprises.
Further, with the increasing adoption of smartphones, tablets, and other handheld devices,
there is a rapid increase in the demand for cloud-based VDI. VDI vendors provide customized
applications to enterprises, with features such as high security, reduced installation costs, low
energy consumption, and user-friendly interfaces.
In addition, the increasing adoption of handheld devices is leading to lighter applications being
developed to support their execution on such small devices. Enterprises support the usage of
handheld devices by employees to provide them with remote connectivity and easy access to
enterprise applications. The adoption of VDI enables enterprises to execute applications on a
centralized server and display the results on the handheld devices of employees.

6
Exhibit 2: Cloud-based VDI Storage Market in Europe 20112015 (US$ million)
The increasing demand for cloud-based VDI solutions is also leading to the growing demand for
cloud-based storage services to archive business files and other data that is accessed over the
cloud. Thus, the usage of smartphones and other handheld devices has led to increased
demand for storage space. The Cloud-based VDI Storage market was valued at US$10 million in
2011 and is expected to reach US$34 million by 2015, growing at a CAGR of 34.8 percent.
In cloud-based VDI storage, files and other applications are stored on a centralized server. These
files are accessed by the end-users on the go. As the number of end-points for access increases
in response to the growth of enterprises, the demand for storage space is expected to rise
rapidly. The growing adoption of cloud-based computing is creating the need for enhanced
computing infrastructure to cater to enterprise needs. Cloud-based VDI solutions facilitate easier
provisioning of desktops for end-users.


7
Five Forces Analysis

Threat of Rivalry
(High)

By acquiring small
companies, the market
vendors can increase their
share
Bargaining Power of
Suppliers
(Medium)

As cloud-based VDI
vendors provide only
software-based services,
they do not depend much
on external vendors
Bargaining Power of
Buyers
(Medium)

Almost all the players
provide customized
solutions and hence the
end-users have a wide
range of options to
choose from
Threat of New Entrants
(Medium)

As entry into the market
requires a high level of
expertise and capital
investments, new players
find it difficult to enter the
market
Threat of Substitutes
(Medium)

There are no substitutes for
VDI. However, enterprises
can opt for internally
managed systems

8
05. End-user Segmentation
Several enterprises are nowadays increasingly integrating cloud-based VDI solutions into their
businesses. These VDI solutions come with numerous attractive features such as high security,
reliability, easy scalability, and reduced operational costs. However, the increased adoption of
innovative technologies into organizational infrastructure is leading to rising network complexity.
Cloud-based VDI provides desktop solutions through the cloud model, which allows accessibility
through the internet and is therefore finding increased adoption among various sectors in the
market.
Exhibit 3: Cloud-based VDI Market in Europe by End-user Segmentation 2011
IT service providers and the BFSI sector are the major adopters of cloud-based VDI solutions in
Europe. IT service providers accounted for 2123 percent and the BFSI sector accounted for 19
21 percent of the Cloud-based VDI market in Europe in 2011. Education institutions constituted
1416 percent of the adopters in the market. Further, the Retail industry constituted 1315
percent and the Manufacturing sector constituted 911 percent of the end-users in the market.
Healthcare institutions constituted 79 percent of the end-users, and their share is expected to
rise in response to the increasing development of customized applications. The other end-users
in the market together accounted for 913 percent of the end-users. The demand for cloud-
based VDI is expected to rise considerably, resulting in its increased adoption during the forecast
period.

9
Nowadays, the rapid developments in technology, accompanied by the rising complexity of
enterprise networks, are increasing the overall operational costs of enterprises. As a result,
enterprises are trying to adopt new technologies to benefit from these developments, while at
the same time incurring minimal expenditure. With the increasing adoption of cloud-based
services, VDI vendors are providing solutions using the cloud model. They are also providing
customized platforms and applications to cater to the needs of enterprises.
IT service providers are the major adopters of cloud-based VDI solutions. Also, the BFSI sector
benefits the most from these cloud-based services. The increasing usage of mobiles,
smartphones, and other handheld devices is leading to the increased operational flexibility of
enterprises, while at the same time creating the need to deploy VDI solutions across various
platforms. Educational institutions provide learners with access to study material and other
academic requirements through cloud-based VDI solutions. Cloud-based VDI also provides high
security and reliable access to the centralized applications independent of the underlying
system architecture.
Other major segments that are incorporating cloud-based VDI solutions into their infrastructure
include the Manufacturing and Retail industries and healthcare institutions. These sectors are
increasingly adopting VDI solutions to manage the incorporation of modern technological
facilities into their businesses. VDI facilitates security and centralized backup of data and
maintenance of resources, which is of immense help to growing enterprises.

10
06. Vendor Landscape
The Cloud-based VDI market in Europe is currently witnessing rapid technological developments.
As a result, enterprises are finding it difficult to cope with the changes and also incorporate them
into their infrastructure. Therefore, they need solutions to utilize advanced technologies, but
without the involvement of too much capital expenditure. Cloud-based services that follow a
pay-per-use model are the best option for such enterprises.
Many vendors nowadays provide VDI solutions based on the cloud model. Cloud-based VDI
solutions work on a pay-per-use model, which is cheaper than a traditional VDI solution. Cloud-
based VDI solutions entail lower operational costs as they are accessed through web browsers.
Desktone Inc. is the market leader in providing cloud-based VDI solutions. In fact, it was the first
vendor to provide cloud-based VDI solutions in Europe. MokaFive Inc. and Wipro Ltd. are the
other major players in the Cloud-based VDI market in Europe. VMware Inc. and Citrix Systems
Inc. provide the required platform for delivering cloud-based VDI services, and third-party
vendors offer customized services according to the needs of end-users. VMware and Citrix have
their presence in this market mainly through third-party vendors.
There are many other vendors such as SecureOnlineDesktop, Worlddesk, and SCC that provide
VDI solutions over the cloud infrastructure. These vendors deploy solutions from VMware and
Citrix onto client systems and customize them according to end-user needs.
At present, many vendors are releasing new products to remain competitive in the market.
Some of the recent developments in the Cloud-based VDI market in Europe are listed below:
MokaFive provides an alternative for VMware ACE, which has been discontinued from 2011.
The new product is available at a 75 percent discounted price compared to VMware ACE
MokaFive released LivePC, which is an encapsulated Windows desktop. MokaFive uses
VMware player to meet end-user desktop requirements
Desktone released Desktone Virtual-D platform to support system centers, including system
center Virtual Machine Manager 2008, on a windows Hyper-V server. The Virtual-D platform
enables service providers to offer hosted as well as subscription-based virtual desktop
services


11
Some of the major vendors in the Cloud-based VDI market in Europe are described below:
Company Category/Description
VMware Inc. Global leader in virtualization and cloud infrastructure
Citrix Systems Inc. Leader in remote desktop services
Desktone Inc. Global cloud-hosted desktop service provider
MokaFive Inc. Global virtual desktop vendor and service provider
SecureOnlineDesktop Leading global cloud-based software solutions provider
RedHat Inc. Global Linux operating system and application provider
WorldDesk Ltd. Integrated and consolidated VDI solutions provider
SCC Leading technology solutions provider as well as cloud service
provider
Netelligent Cloud-based desktop service provider

Red Hat Inc. will include cloud-based VDI solutions to its product portfolio by the middle of 2012.
The entry of Red Hat in this market is expected to change the market dynamics through its low-
cost solutions.


12
07. Buying Criteria
Parameter Details End-users Significance Attached
Minimal
Infrastructure
The VDI solution should
have minimal
infrastructure pre-
requisites

BFSI Sector

Education Sector

Retail Industry

Simplicity The solution must be
simple to understand
and easy to manage

BFSI Sector

Education Sector

Retail Industry

Security Cloud-based VDI
solutions must provide
highly secure and
reliable infrastructure to
ensure that the privacy
of data is not
compromised

BFSI Sector

Education Sector

Retail Industry

Customization VDI solutions must be
easily customizable
according to end-user
requirements

BFSI Sector


13
Education Sector

Retail Industry

Key
The impact of the buying criteria is graded based on the intensity and duration of the impact on
the current market landscape. The magnitude of the impact has been categorized as
described below:
Low Negligible or no impact on the market landscape
Medium Medium level of impact on the market
Moderately High Significant impact on the growth of the market
High Very high impact with radical influence on the growth of the market


14
08. Market Growth Drivers
Nowadays, enterprises are finding it difficult to manage and incorporate the rapid technological
changes that are fast becoming a part of the global economic scenario, into their infrastructure.
To solve this problem, enterprises are searching for solutions that can be deployed independent
of their underlying system architecture. With the adoption of mobile computing, smartphones,
and other handheld devices, there is an increasing demand for resources such as computing
equipment, storage, and security devices. The ability of cloud-based VDI solutions to address
these rising demands is driving their adoption in Europe.
Some of the major drivers that affect the Cloud-based VDI market in Europe are discussed
below:
Enterprises across Europe are currently witnessing an increased need for applications to cater to
their growing business needs. They are searching for solutions that can provide them with access
to applications independent of the system architecture on end-user systems. At present, the
market vendors are offering desktop infrastructure solutions using the cloud model, and these
solutions are independent of client system architecture. Thus, organizations can perform
operations and use applications irrespective of the client system architecture. The execution of
these applications depends only on the server configuration, which caters to the needs of the
end-users.
VDI solution vendors are nowadays providing cloud-based VDI solutions, which have low
operational costs. Further, the deployment of these solutions does not require huge capital
investments, which helps reduce the overall cost of the solutions. Also, VDI facilitates
virtualization of the underlying architecture, thus helping reduce the overall time taken for the
maintenance of data centers. Furthermore, cloud-based VDI solutions require a low number of
servers to cater to end-user needs, which reduces capital investment considerably.

15
With the growing complexity of network infrastructure and rapid technological developments,
there is a rise in the number of services being provided based on the cloud model. The cloud-
based access of the applications requires highly secure interfaces to be established for the
transmission of data. Cloud-based VDI solutions make use of a single copy of client data, which
is updated whenever the client makes changes. Further, in case of a system failure, VDI is
equipped with a roll-back mechanism that can restore the system to its previous state. Thus,
cloud-based VDI solutions are reliable and efficient, and these attractive features are driving
their adoption in Europe.
Enterprises across Europe are scaling up their infrastructure to store and efficiently manage the
enormous amount of data being transmitted across organizational networks. There is an
increasing need for enterprises to scale up their resource requirements to match growing
organizational requirements. As a result, cloud-based VDI solutions are at present experiencing
high adoption because of their ability to offer easy scalability of desktop infrastructure in a short
time span. Besides, VDI follows a client-server architecture, which enables easier provisioning of
desktop interfaces. The desktops are provisioned from the server side, which increases the
adoption of cloud-based VDI solutions.

16
09. Drivers and their Impact

Key
The impact of the drivers is graded based on the intensity and duration of the impact on the
current market landscape. The magnitude of the impact has been categorized as described
below:


17
10. Market Challenges
Though the Cloud-based VDI market in Europe has many drivers, its growth is curtailed by certain
growth inhibitors. One of the major challenges faced by the market is the rapid growth of
technology, which is increasing the complexity of enterprise infrastructure. Enterprises are finding
it difficult to find efficiently integrate VDI solutions in line with their business requirements. The
increasing costs associated with license agreements of software and rising network congestion
are other major challenges being faced by the market. Further, the unstable economic
conditions prevailing in Europe constitute another major concern that affects the market
dynamics in Europe.
Some of the major challenges in the Cloud-based VDI market in Europe are discussed below:
With the rapid technological developments taking place in the global economy nowadays, the
complexity of enterprise infrastructure also increases considerably. The increasing complexity of
enterprise infrastructure creates a need for efficient management through the integration of VDI
solutions that meet these requirements. Hiring and training IT infrastructure administrators form a
major component of service costs, and these costs increase with the advancements in
virtualization technologies. Hence, the need for specialized skills to manage VDI prevents
enterprises from adopting cloud-based VDI solutions.
VDI vendors these days are providing enterprises with desktop solutions through the cloud
model. These applications are installed on a central server and accessed remotely by end-users.
However, software and operating system vendors have increased the prices for the enterprise
licenses of their products. This increase in price has a direct impact on the prices of the services
provided by cloud-based VDI solution vendors. Further, the scaling up of enterprise infrastructure
based on increasing business requirements is leading to an increasing number of licenses being
purchased, which increases the overall cost of VDI solutions. Thus, the increasing cost of software
licenses is a major challenge in the Cloud-based VDI market in Europe.

18
VDI works on a client-server model, with the client's operating system and applications being
hosted on a central server, and the client systems being provided access to them. The data is
transmitted from the server to the relevant client system whenever required. Therefore, the
network interface may get congested when multiple systems access the same central point
through the same medium. Congestion also occurs when resources are overburdened as a
result of increased mapping of applications with limited resources. This network congestion
causes delay, which results in flooding of the network interface. Thus, network congestion issues
have a negative impact on the Cloud-based VDI market in Europe.
The prevailing unstable economic conditions have had a negative impact on the capital
investments being made by enterprises across Europe. Enterprises are currently avoiding any
changes to their infrastructure that involves large capital investments. The adoption of cloud-
based VDI requires considerable initial capital investment and restructuring of infrastructure.
Though this is beneficial over a period of time, enterprises are reluctant to adopt VDI solutions as
they are trying to avoid capital expenditure. This is a major challenge in the Cloud-based VDI
market in Europe.

19
11. Impact of Drivers and Challenges
Impact of the top four drivers and challenges on the Cloud-based VDI market in Europe is
illustrated below:

Key
The impact of the drivers and challenges is graded based on the intensity and duration of the
impact on the current market landscape. The magnitude of the impact has been categorized
as described below:

20
12. Market Trends
The Cloud-based VDI market in Europe is witnessing certain emerging trends that are affecting
the growth of the market in a positive manner. Enterprises are increasingly looking for solutions to
centralize their system maintenance and management. Also, with the growing business needs of
enterprises, the demand for customized applications is rising. Cloud-based VDI vendors provide
customized applications. Further, with the increasing complexity of enterprise infrastructure,
there is an increasing trend of outsourcing services. Thus, the trend of the increasing adoption of
cloud-based services to cater to rising business needs has a positive impact on the Cloud-based
VDI market in Europe.
Some of the major trends in the Cloud-based VDI market in Europe are discussed below:
VDI enables centralized monitoring of the users connected to a network. Data and applications
are stored on a centralized server, and all the client systems are connected to this server. The
network administrator from the vendor providing the cloud-based services manages and
provides access to these end-user systems. The centralized provisioning of end-user systems with
required computing resources eases the management of user profiles. Using cloud-based VDI,
operating systems and software can be loaded on the server and a copy can be provided to
the end-user systems for use.
With the increasing adoption of applications by enterprises to cater to changing business
requirements, there is a growing need for customized applications. Cloud-based VDI solution
vendors provide customized applications to end-users with features that suit their requirements.
In fact, cloud-based VDI solutions can achieve a high level of customization with user data and
profile management and on-demand application delivery, and this is driving their increased
adoption among end-users. Moreover, cloud-based VDI solution providers are also
concentrating on providing end-to-end solutions to end-users.

21
Nowadays, enterprises are finding it increasingly difficult to manage the increasing complexity of
network infrastructure resulting from the rapid technological advancements in the market. There
is a growing trend of outsourcing of support services to third-party vendors that are experts in the
management and maintenance of enterprise infrastructure. Cloud-based VDI vendors provide
desktop infrastructure support to enterprises along with rapid system provisioning and
maintenance services. Thus, enterprises can outsource their desktop provisioning services to
these vendors so that they can focus on their core business activities.
With rapid technological advancements, organizations seek to use these technologies to their
fullest potential for maximum benefits. Cloud-based computing services have emerged as the
best option for adopting modern technology at a low cost. Cloud computing service providers
are incorporating the latest technological developments into their infrastructure to maximize the
benefits for end-users. Even virtual desktops are also being made available on the cloud
categorized as a service. Thus, with the increased adoption of cloud-based services, vendors
are incorporating new and improved features to cater to the specific needs of end-users. This
drives the Cloud-based VDI market in Europe.

22
13. Key Vendor Analysis
13.1 VMware Inc.
Business Overview
VMware Inc. was founded in 1998 and is headquartered in Palo Alto, California, US. It is the
global leader in virtualization and cloud infrastructure. It delivers customer-centric solutions to
accelerate IT by reducing complexity and enabling more flexible and agile services. Nearly 50
percent of its revenue comes from the issue of licensing, and the remaining comes from software
maintenance and professional services. The Americas contributes more than half of its revenue,
while the rest is shared among the EMEA region and the APAC region.
The company reported net revenue of US$3.77 billion in FY2011, which was an increase of 32
percent compared to its revenue in FY2010. VMware generates its revenue from two business
segments: Licensing and Services. The Services segment includes software maintenance, and
professional services such as online support. The revenue from the issue of licenses was US$1.84
billion, which was an increase of 31 percent compared to the revenue in FY2010. Revenue from
services was US$1.93 billion, which was an increase of 32 percent compared to FY2010.


23
Strengths
VMware has a wide adaptability in
the market. Its virtualization
technology is supported on almost
all the system architectures present
in the market
The company's solutions support
live migration. Live migration refers
to migration of virtual environments
between physical systems
It has strong brand value as a result
of its proven expertise in cloud-
based solutions

Weaknesses
Its solutions require high
configuration systems for good
performance, which increases
capital costs during adoption
Opportunities
Several small companies are
providing unique virtualization
solutions. The strategic acquisitions
of such companies can prove
beneficial for the company
Enterprises consider cloud-based
VDI to be a cost-effective solution;
this provides the company with
huge growth opportunities in the
near future
Threats
The VDI market is still is in the
growing phase, and users find
traditional VDI solutions efficient
and cost-effective. In such a
scenario, users may continue to
deploy traditional VDI rather that
cloud-based VDI to eliminate the
complexity associated with cloud-
based VDI integration
SWOT Analysis


24
13.2 Citrix Systems Inc.
Business Overview
Citrix Systems Inc. was founded in 1989 and is headquartered in Fort Lauderdale, USA. It is the
market leader in server and desktop virtualization, networking, SaaS, and cloud computing
technologies including XEN open-source products. In 2011, revenue from the sale of products
and issue of licenses accounted for 67 percent, and software maintenance and professional
services contributed 33 percent of the total revenue. Citrix provides IT solutions that are not
dependent on the hardware and are upgradable according to the growing technological
needs. It is an expert in providing solutions for remote desktop connections and remote access
to systems in a network.
The company reported net revenue of US$2.21 billion in FY2011, which was an increase of 18
percent compared to the revenue in FY2010. Revenue from the issue of product licenses has
increased by 20 percent to US$744 million. Revenue from the renewal of licenses was US$741
million with an increase of 8 percent. The company has its business in both desktop and server
virtualizations. Citrix, along with its most popular product called XEN, is one of the leading players
in the Global Virtual Desktop Infrastructure market.


25
Strengths
Citrix has increased its investments
in R&D activities, which increases its
prospects of penetrating the
market with innovative products
It has a strong online support
segment, which helps it to provide
efficient support to its customers

Weaknesses
The company has a relatively low
R&D budget for virtual desktop
solutions compared to other
leading vendors in the market
The brand equity of the company
is not as strong as compared to
other competing vendors in the
market
Opportunities
It can enter into technological
partnerships with other vendors to
develop user-friendly products and
gain a larger market share
Threats
As a result of the current financial
crisis, enterprises may delay
investments in new technology
Cloud-based VDI solutions are at
their nascent stage, and users may
wait for proven experience before
investing. This can have an adverse
impact on the company's future
plans for cloud-based VDI solutions
SWOT Analysis


26
13.3 Desktone Inc.
Business Overview
Desktone Inc. provides the industrys first virtual desktop hosting platform, enabling desktops to
deliver outsourced subscription service. It has its headquarters in Chelmsford, MA. The Desktone
Virtual-D platform has been incorporated with all the required technologies to offer a single,
automated self-serviced platform. By providing DaaS, the company reduces the cost in setting
up desktop infrastructure. Its DaaS methodology provides better protection for physical
resources and corporate information. The company is entering into a number of strategic
partnerships for the development of cloud-based VDI solutions. A recent partnership with Dell
Inc., will help the company to leverage the benefit of Dell's strong sales force in Europe and the
US. The company seems to be very aggressive at R&D as it has launched several solutions for
cloud-based VDI in a very short time period.

27
SWOT Analysis

Strengths
Desktone has a strong partnership
with VMware to provide desktop
virtualization solutions. It also
entered into a strategic relationship
with Dell Inc. to launch DaaS
The company is backed by
potential investors that can ensure
the availability of funds for
investment
It has several solutions for cloud-
based VDI. In particular, the launch
of Desktone 5.0 Platform will further
strenthen the company's position in
the market

Weaknesses
The company is very new and has
very limited geographical
presence
It depends heavily on its business
partners for the sale of its products

Opportunities
The company is developing
multiple user interfaces, which
have a great demand in the
market
The growing demand for cloud-
based VDI solutions can help the
company increase its market share
in the forecast period
Threats
Many other vendors are entering
the market to provide virtual
desktop solutions, and they present
a threat to the company
The company also faces the threat
of being acquired by a larger
company

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13.4 MokaFive Inc.
Business Overview
MokaFive is a virtual desktop solution provider headquartered in Redwood city, CA. It provides
fast, simple and advanced management capabilities to the employees of an enterprise. It
delivers fast, cost-effective and reliable solutions for virtualizing the desktops. The company
provides highly customized solutions to end-users, which makes it user-friendly and agile. The
company's solutions include the Moka five engine that is used for subscribing, running, creating,
distributing, and updating LivePCs, and virtual computers. Apart from that the company offers
Moka five LivePCs. Furthermore, company provides vWorkspace-MokaFive Suite; it is a virtual
desktop infrastructure solution for Windows and Mac laptops and desktops.


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SWOT Analysis

Strengths
MokaFive specializes in the
development of VDI solutions for IT
service providers, and this line of
business has good prospects in the
future
The company's VDI solution can be
installed directly on the system
hardware without any intermediate
layer
Its products have a strong, in-built
security feature
Weaknesses
The company mainly focuses on
providing solutions to Macintosh
systems and has limited experience
in catering to Windows-based
systems
The company has weak funding,
which can affect its operations
Opportunities
The company has a strong
presence in mobile-based desktop
infrastructure provisioning, which is
expected to grow rapidly in the
future
It is developing virtualized
environment solutions for iOS,
which will facilitate its expansion
into the Virtualized Application
market
Threats
Big players such as IBM and
RedHat are entering the market,
which can change the market
dynamics and make the market
very competitive. Such
developments may make it difficult
for smaller companies such as this
one to survive

30
13.5 Secure Online Desktop
Business Overview
Secure Online Desktop was established in 2011, and has it is headquartered in ReggionellEmilia,
Italy. It provides solutions to replace traditional desktop services with distributed systems. With the
company's services, traditional systems are replaced with thin clients, and the thin clients are
connected to centralized data centers, which provide the data and computational resources
required by end-user processes. The company also provides centralized databases for the safe
storage of files.


31
SWOT Analysis

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Strengths
Secure Online Desktop has a
strong presence in online software
provisioning, which is a major
advantage for the company
It has a strong R&D team, which
can deliver strong solutions for
enterprises

Weaknesses
The company has low technical
capabilities, which prevents it from
providing end-to-end solutions for
enterprises
Its business is limited to the
European region
The peripherals attached to the
nework are not detected in some
of the solutions of SecureOnline
Desktop
Opportunities
With many developments in
virtualization technology, there is a
scope for improvement in service
provision
The company provides various
solutions for the educational sector
Threats
The current weak economic
conditions are a threat to the
company's expansion plans in
Europe
The company is just emerging, and
therefore faces a high risk of being
acquired by big players in the
market

32
14. Other Reports in this Series
Global Public Cloud Services Market 20112015
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Global Enterprise Mobile Cloud Computing Market 20112015
Cloud-based VDI Market in the UK 20112015
Global Tape Automation Market 20112015
Global Mobile Virtualization Market 20112015
Global Colocation Market 20112015
Global Data Center Rack Market 20112015
Enterprise Mobile Cloud Computing Market in North America 20112015
Global Managed Hosting Market 2011- 2015
Cloud Services Adoption Market in the EMEA Region-Survey Report 2011
Global Data Center Opportunities and Challenges-Survey Report 2011
Global Hosting Infrastructure Services Market 20112015
Hosting Infrastructure Services Market in the US 20112015
Global Cloud Equipment Market 20112015


20112015

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