Citrix Systems CTXS recently deployed a cloud-based solution – Citrix App Delivery and Security Service – designed primarily to simplify and automate the process of delivering applications like provisioning, integration and management. This will help IT teams deliver an improved user experience.
The solution is “intent-based,” which means it can automatically convert business and technical intent into application delivery as well as security policies and configurations, the company added. The offer is expected to be available from the fourth quarter of 2021.
Citrix App Delivery and Security Service is able to automatically detect and correct various application delivery issues, including performance degradation and outages.
Citrix also said the solution can collect and evaluate 10 billion data points from over 1 billion users across 50,000 networks in 200 countries per day to provide increased visibility into the state of the internet through at Citrix Intelligent Traffic Management.
Citrix Systems, Inc. Price and consensus
Citrix Systems, Inc. price-consensus-chart | Quote from Citrix Systems, Inc.
IT teams can leverage data to improve the application experience for users. IT can also recommend locations to host additional sites to handle higher traffic and maintain adequate service levels.
The new solution includes bot management, a built-in web application firewall, and application programming interface (API) protection for valuable and sensitive assets.
Changing workspace requirements highlight opportunities
The cybersecurity market, globally, is expected to experience a CAGR of 14.5% between 2021 and 2026 and reach $ 352.25 billion, according to a report by Mordor Intelligence. The trend towards remote working has led to an increase in the cases of cyber attacks, thus requiring the deployment of robust secure access solutions.
Higher requirements to create an agile IT infrastructure capable of thwarting advanced persistent threats are also fueling the market growth.
Adopting a distributed working model is expected to drive demand for digital workspaces and security solutions in the post-pandemic world.
These projections bode well for Citrix, which is one of the well-known players in the field of digital workspace solutions. In addition to Citrix SD-WAN and Citrix Secure Workplace Access solutions, the company also offers solutions such as Citrix Endpoint Management, Citrix Secure Browser, and Citrix Virtual Apps and Desktop.
The acquisition of Wrike (March 2021) is expected to strengthen the company’s presence in the area of ââcollaborative work management solutions based on Software as a Service (SaaS).
However, Citrix is ââgoing through a difficult time, given the ongoing transition to a subscription-based model. The transition puts pressure on Products and Licenses revenues as well as Support and Services revenues.
A highly leveraged balance sheet is another concern for this Zacks Rank # 3 (Hold) company. As of June 30, 2021, the Company’s cash and cash equivalents and investments were $ 532 million. Long-term debt at the end of the quarter stood at $ 3.474 billion.
In the last published quarter, the company announced that it is incorporating various changes to its business organization as well as its go-to-market processes and strategies in the second half of 2021 to strengthen its SaaS operations. Citrix has lowered its outlook for 2021 due to a negative impact of these organizational changes.
For 2021, Citrix is ââforecasting revenues of between $ 3.22 billion and $ 3.25 billion, compared to earlier forecasts of $ 3.38 billion to $ 3.42 billion.
A few days ago, Bloomberg reported that the company was in discussions with its advisers to explore a potential selloff amid disappointing stock performance. There is no official word on the Citrix issue.
In the past year, Citrix shares are down 22.3% against an industry growth of 29.8% and the S&P 500 index rally of 31.3%.
Actions to consider
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