So by now most of you have seen that Citrix will be acquiring XenSource (Press Release). As a Citrix, VMware and Microsoft partner, this makes life real interesting (as I'm sure it does for many other partners). It has always been a "cat and mouse" game when it comes to these 3. We used to be able to say "Virtualize all your Microsoft core infrastructure with VMware and then deliver the applications via Citrix". Then Microsoft entered the virtualization space (Microsoft Virtual Server) (of course it starts earlier than this with Terminal Services, etc but I'm trying not to write a novel here). Then VMware decides they want part of the remote access world (VMware ACE). Then Citrix make a small step into "virtualization" with Ardence. Then VMware acquires a Connection Broker (Propero). And finally we have tonight's topic... Citrix buys XenSource.
I'm sure I'll be spending a lot of time soon with Propero and XenSource in the coming months to get my hands around both technologies and how they can help our clients, but for now... I'm gonna analyze this most recent acquisition by Citrix.
I break this acquisition into two key parts: Server Virtualization and Desktop Virtualization.
Server Virtualization - This is the harder one. Of course, VMware is #1. No question. So is Citrix going after VMware? Or are they just playing "me too"? Let's say Microsoft is number #2 and Citrix wants to be #3. Citrix can compete on price against VMware, but loses on the features. Citrix can compete with better features than Microsoft, but can't beat that price. So let's just say if this is Citrix's strategy, they will get clients who are anti-MS or have tight budgets.
If Citrix wants to be #2, you'll probably see a lot more features coming soon (beyond the recent announcements by XenSource) and lot of integration with other Citrix technology (think Access Gateway Virtual Appliances, EdgeSight/ThinGenius load generator/synthetic tester appliances).
They have a long road to climb here to achieve this, so I'm thinking this strategy is more the former ('take what we can get") than the latter ("Let's go up against VMware!")
PS Unless SWSoft or Virtual Iron are bought by someone big, I have to think they will not be around much longer. There isn't much room left with 3 heavyweights in the room.
Desktop Virtualization - Now this is where I think Citrix is really going for the jugular. Virtualize your hardware (XenSource), Stream your operating system - physical or virtual (Ardence), and then Virtualize (Presentation Server) or Stream (Presentation Server or Desktop Server) your applications. All using the best remote display and remote access protocol for Windows applications (ICA) and a leading VPN Technology (Access Gateway Product Line). Not a bad idea. They own a larger piece of the application delivery stack for Virtual Desktop deployments. Pretty compelling story since VMware doesn't really care about applications and how they are delivered and they care only a little about Remote Access. And Microsoft doesn't seem to be pushing into the Virtual Desktop market - possibly due to their hardware friends like HP and Dell who stand to lose a lot of desktop refresh cycles most organizations have setup today.
Since the Desktop Virtualization infrastructure doesn't have to be as robust as a production server environment (where organizations are putting VMware in use today), clients may not want to pay for some of the advanced features that VMware is pushing just to deliver a desktop. So in swoops Citrix to offer their lower cost and more application delivery oriented virtualization architecture. This is where Citrix has the largest potential and its biggest advantage.
However nothing is "guaranteed except death and taxes". Citrix has an up hill battle. VMware may potentially have another "car in their rear view mirror" even if it has a ways to catch up... it just received a nitrous injection from Citrix. Can Citrix, VMware and Microsoft still be friends? Can Citrix create better features or adminstrator interfaces than VMware and/or Microsoft? Is Citrix showing up to a game that started a few years ago? Can Citrix simplify UNIX administration for the average Windows administrator (big question mark here)? How long will it take for Citrix's "Go To Market" strategy for its current partners take? How will those same partners react now that there are 3 large very large elephant's in the room all trying to sell their product? As always, time (and lots of meetings) will tell.
More information:
CRN Comparison of Virtualization Technologies
http://www.crn.com/software/201400070
CRN Comparison of Virtualization Technologies (last page for price and program details)
http://www.crn.com/software/201400070;jsessionid=N2W255NIPBEQQQSNDLPSKHSCJUNN2JVN?pgno=6
XenSource Benchmarks Against VMware (Marketing)
http://www.xensource.com/Documents/hypervisor_performance_comparison_1_0_5_with_esx-data.pdf