Nemertes Impact Analysis

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XenServer5 and the Art of Mindshare Capture

Citrix (NASDAQ:CTXS) launched XenServer5, featuring important additions in high-availability and management. With emphasis on XenServer's ability to thin-provision and manage both physical and virtual servers, Citrix is aiming both at the approximately 80% of companies that have not completed server virtualization efforts and at the 20% who say they are fully virtualized but still, according to Nemertes' forthcoming Virtualization research, average only 61% of servers virtualized.

Impacts:

Enterprise: Citrix is right to emphasize seamless management of physical and virtual space. If you have not made a strategic commitment to another platform yet, take a close look at XenServer5.

Vendors: Citrix's roadmap centers on delivering IT services and leaves lots of room to partner, especially in management and security.

Investors: Microsoft (NASDAQ:MSFT) and Citrix have forced the price of basic hypervisors to $0; XenServer5 significantly ratchets up the pressure on VMware (NYSE:VMW); don't expect it to retain its overwhelmingly dominant market position.

John Burke, Principal Research Analyst

http://www.citrix.com/English/NE/news/news.asp?newsID=1681775
http://www.nemertes.com/issue_papers/nemertes_issue_paper_nextgeneration_computing_strategies