Citrix Launches iBusiness Service Provider Program to Accelerate Growth of ASP Market; Company Pioneers First Usage-based Licensing Model for ASP Industry

Business Wire, Sept 9, 1999

ORLANDO, Fla.--(BUSINESS WIRE)--Sept. 9, 1999--

Citrix Systems, Inc. (Nasdaq:CTXS) today announced at Citrix iForum '99 an aggressive series of new programs to support and accelerate the growth of the application hosting market. Citrix's new iBusiness Service Provider channel program includes the application service provider (ASP) industry's first "pay-as-you-go" software licensing model for enabling infrastructure software, Citrix MetaFrame(tm), where payment is based on actual usage of concurrent-user licenses. Usage-based software licensing offers a more flexible licensing scheme to help the fast-emerging ASP market reach more customers. The newly announced Citrix iBusiness Service Provider program will set the standard for ASP excellence by creating an alliance-based network around the ASP to facilitate partnerships with industry-leading companies in complementary areas, including network service providers (NSP) and application specialists. Today's announcement further strengthens Citrix's strategic position at the heart of the ASP movement.

Citrix server-based solutions have been widely adopted by the emerging ASP community as the cornerstone technology for application hosting. Currently, more than 75 application service providers are in active deployment or pilot projects based on Citrix's application server software. Citrix is a founding member of the ASP Industry Consortium, an independent international advocacy group dedicated to fostering greater understanding of and guidelines for the ASP segment of the computer industry.

"The ASP movement is emerging on the back of industry standardization on Citrix's Independent Computing Architecture (ICA(R)) and server-based solutions, now used by 15 million end users and 98 of Fortune 100 companies," said Chris Phoenix, vice president and general manager of Citrix's iBusiness Unit. "As early as 1996, innovative companies seized the opportunity for application hosting and became the industry's first ASPs, enabled by our server-based solutions. From those early beginnings, we now have a developed ecosystem of ASPs, NSPs and application specialists that are all contributing to the success of this growing market. With our new iBusiness Service Provider program, Citrix is providing a wealth of support behind these companies, while cementing our position as a cornerstone ASP technology provider."

"Pay-as-you-go software licensing will be an important factor in jump-starting the ASP market by opening the opportunity up to more providers," said Clare Gillan, vice president, Applications Research, International Data Corp. (IDC). "Equally important is ASP adoption of quality systems infrastructure and management software to deliver reliable performance. Citrix's early initiatives, such as designing a new licensing model, creating an ASP accreditation program and, in particular, helping to establish the ASP Industry Consortium, will help move the ASP industry forward."

The Citrix iBusiness Service Provider Network

A key benefit of Citrix's new iBusiness channel program is the alliance-based network it facilitates, bringing NSPs, ASPs and application specialists together with more than 7,000 Citrix Solutions Network (CSN) providers, 400 Citrix Business Alliance (CBA) members, and 100 OEM licensees of Citrix ICA to deliver a better business solution through partnerships and core competencies. The iBusiness channel program is tailored to meet the needs of these specialists:

iBusiness Application Service Provider. The Citrix iBusiness program is tailored to meet the unique requirements of ASPs that run hosted application facilities and want to provision Citrix application server software. Citrix will provide member ASPs with the software, services and marketing programs needed to serve new markets, grow revenue and build brand identity. Program benefits include: -0-

--   Citrix iLicense. Exclusive to iBusiness Application Service
     Providers, iLicense is a "pay-as-you-go," concurrent-user
     software license that enables the ASP to provision a full suite
     of Citrix software - including Citrix MetaFrame, Load Balancing
     Services, Installation Management Services, and Resource
     Management Services - across an entire server farm, without
     incurring up-front licensing fees.

     The iLicense Audit Utility measures concurrent usage on the
     server farm, enabling ASPs to make convenient monthly
     payments to maximize cost efficiencies and cash flow. The
     program also includes tiered discounts that take effect as
     the ASP's customer base grows. Product upgrades are
     automatically delivered for software provided under the
     program. Citrix iLicense is scheduled to begin shipping to
     qualified iBusiness Application Service Providers in October
     1999.

--   iBusiness Account Management. An iBusiness account
     management team will be assigned to the ASP, including
     a regional sales manager to handle day-to-day business
     needs, and an iBusiness development manager to
     facilitate strategic relationships with iBusiness
     Network Service Providers and iBusiness Application
     Specialists.

--   24x7 Technical Support. A senior support manager will
     be assigned to iBusiness Application Service Providers
     to become familiar with the ASP's environment, provide
     technical guidance and manage open issues until they
     are resolved.

--   Ongoing Training and Education. To ensure iBusiness Application
     Service Providers stay on the leading edge of Citrix technology,
     they will receive vouchers to send professional and technical
     staff to Citrix Authorized Learning Centers (CALCs). They will
     also have direct access to the Citrix Solutions Search CD-ROM and
     Citrix's library of best practice documentation that has been
     compiled from over a decade of hands-on experience.

--   Marketing and Sales Tools. ASPs can take advantage of marketing
     and sales tools to attract customers, build strategic
     relationships and brand their services. Additionally, they will
     gain unlimited access to Citrix's exclusive ASP Central portal, a
     members-only website that provides consolidated sales, marketing,
     educational and technical ASP resources.