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Technology Stocks : Citrix Systems (CTXS) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (6851)	7/29/1999 10:09:00 PM
From: jhg_in_kc	Read Replies (1) \| Respond to of 9068

a must read: THE LAY OF THE LAND: THIN CLIENT OPTIONS. The "thin" comes from the opposite of the acronym "fat" seen on MSFT File Manager when you look at your C Drive: ("Fat" means File application Profile?) 'Ultra-Thin Client - Client/Server' Architecture Ultra-Thin Client compared to NCs, NetPCs, and Windows Terminals Introduction The terminal, once closely associated with mainframe computing, has come into its own. Operator desktops in the mainframe and mini-computer eras were dominated by character mode terminals. Terminals were regarded as a means of providing the operator with an interface to the computer system and its applications. With the introduction of the personal computer, user focus shifted. PCs enabled users to have direct control of applications and functions locally. The need for this control launched a billion dollar computer industry. Today the tide has shifted. Once again the desktop workstation is being evaluated as a tool where lower cost and functional characteristics are the driving motivation. Surveys conducted in 1992 showed that large installations typically expected to have one time client/server costs of $7,000 per seat with 64% of this amount allocated to hardware and software maintenance. Desktop support, operator training, and PC administration, combined with network administration costs send the total cost of networked PC ownership soaring. As a result the computer industry is searching for more cost effective solutions. As an example of this changing trend, Microsoft recently announced it has plans to develop client and server software for a sub-$500 Windows terminal that will go head-to-head with network computers. The move is a radical shift for the software giant. Microsoft has traditionally been a staunch proponent of network-ready PCs that store all software and data on a local hard drive ("fat" clients). Thin-Client Alternatives Other computer companies have proposed a number of cost effective thin-client computing alternatives to networked PC's. These options can be separated into four basic groups: the NetPC model, the NC (network computer) model the Citrix WinFrame model, and Microsoft's Windows Terminal model. -------------------------------------------------------------------------------- NetPC Model The NetPC computing model is the closest to traditional client-server model in which there are several PCs running off an NT or UNIX server. In this model PC's are replaced with NetPCs (diskless PCs). The client downloads its operating system and applications from a server at startup. The software and data are stored remotely, reducing the cost of service and support of the software. However, processing is done locally and access to remote data uses an Ethernet protocol. Because NetPCs are essentially PCs, they have signifacant hardware costs and the problem of administration still exists. -------------------------------------------------------------------------------- NC Computing Model The NC (network computer) consortium has proposed another option. It has created a completely different architecture that uses Java OS and moves all applications to the Web browser. This option eliminates the need for PC's and uses a server (UNIX or NT) which is hooked up to a series of NC terminals. The terminals download the operating system, browser and software from the server and do Java-based processing locally. They have local memory and processing and receive data using TCP/IP protocol. The advantages of this model are lower initial hardware and software costs and lower maintenance costs. Also, because most client system software is downloaded at the time of booting up the terminal, changes to the software are easily accomplished. A major disadvantage to the NC computing option is that existing Windows and server applications are not able to run because the architecture must be coded in Java. -------------------------------------------------------------------------------- Citrix WinFrame & Prologue WinTimes Model The Citrix WinFrame or Prologue WinTimes solution brings multi-user capability to the Windows NT environment in a similar manner to how terminals have been supported by Unix. Users run Win32 applications from a central Windows NT host on terminals. The Citrix designers have created ICA (Intelligent Console Architecture) that allows WinFrame clients to communicate with the server with reasonable performance. This solution lowers cost by providing a single software maintenance point like other thin-client solutions, and enables users to run existing Windows applications like a NetPC. Unlike other thin-client solutions all application processing, with the exception of graphics, occurs on the host, which runs on Citrix's modified Windows NT kernel. Unfortunately because the solution is reliant on Microsoft's NT Server and Citrix's WinFrame, software licensing costs are high on a cost-per-seat basis. In addition, Microsoft has currently restricted Citrix's and Prologue's license of the Windows NT software to version 3.5. -------------------------------------------------------------------------------- Windows Terminal Model Microsoft's newly proposed idea, the Windows Terminal is yet to be exactly defined. It appears that it will be thin-client or ultra-thin client on which software and data will be received remotely using a yet to be decided protocol and where processing may be remote or local at the terminals. -------------------------------------------------------------------------------- The Ultra-Thin Client Alternative Maxspeed's MaxStations, provide standard Windows software capability at an even more reduced cost than these thin-client alternatives. This solution gives multiple users simultaneous access to a single client PC which can in turn be connected to a server. The OS, applications, and graphics display run on the Windows 95 system and are accessed by the MaxStations using a direct video connection at 32 Megabits per second. The Windows 95 systems can behave as a client to a main server for access to common databases, and a server to the very-thin MaxStation clients simultaneously. Any software changes on the server or PC are immediately manifested at the user's MaxStation. This technology eliminates the overhead of network traffic to the stations. The PC itself remains fully operable as a local station when access is needed to the diskette or CD-ROM drive. MaxStations are able to run any browser, Java-enabled applications and standard Windows or UNIX applications. They can act as NC terminals, effectively creating multi-user NC systems. This configuration dramatically reduces cost per seat and maintenance cost to provide Internet access to all users.

To: Chuzzlewit who wrote (6851)	7/29/1999 10:17:00 PM
From: jhg_in_kc	Respond to of 9068

IT COST BENEFITS CLAIMED BY CITRIX Last October we published an article that explained the licensing of Citrix WinFrame, MetaFrame and Microsoft Windows NT Server, Terminal Server Edition (TSE). The article displayed the excessive premium that MetaFrame customers have had to pay due to Microsoft's controversial licensing of TSE. Thanks to the continued customer feedback (see customer poll), Microsoft has now reversed course and a significant less expensive method of licensing TSE. This article is designed to bring you up to speed on how these changes impact your future Citrix deployments and expansion activities. A Quick Review of the Licensing Models WinFrame - The WinFrame licensing model is simple. For each WinFrame server you must purchase one WinFrame Enterprise license (list price $5,995) that includes everything you need on the server and your first 15 concurrent users. For additional concurrent users you pay $200 (list price) each. If you require more than one server then you probably want to load balance them and this requires a load balance license for each server (list price $1,495). By the time you're all done you will pay, on average, somewhere in the neighborhood of $300 per concurrent user (list price). This includes all of the software you need - operating systems included. If your ratio of individual users to concurrent users is 4:1 (Citrix's industry wide estimate) then the actual cost per individual user is only $75! Obviously this number will vary, but the possible range of licensing fees per user are $300 on the high end, and some very small number at the low end. (WinFrame product spec sheet) If you need or want a Citrix thin-client/server product based on Windows NT 4.0 then the you need to purchase Citrix MetaFrame along with Windows NT Server, Terminal Server Edition (TSE). Microsoft TSE - For each server you are required to purchase a TSE base operating system license ($1,899 estimated retail price for a 10 user system). Then for each individual user (or device) beyond the first 10 that will connect to the server you are required to purchase a Windows NT Client Access License (CAL) $39.95 (estimate retail price) and either a Windows NT Workstation 4.0 License $269 (estimated retail price) or the new Terminal Server CAL $109 (estimated retail price). If we assume 40 users per server and all users use the new Terminal Server CAL, the average cost per individual user is $159. For further information, refer to Thin Planet's detailed discussion of Microsoft's new TSE license options complete with current pricing information. Citrix MetaFrame - The MetaFrame licensing model is exactly the same as the WinFrame model and all of the prices are the same with the exception of the base server ($4,995 instead of $5,995). The reduction in the base server price reduces the average list price per concurrent user from $300 to $275 (assuming 40 users per server). Using the a 4 to 1 ratio of individual users to concurrent users, the cost per individual user drops to $69.

To: Chuzzlewit who wrote (6851)	7/29/1999 11:18:00 PM
From: Wigglesworth	Respond to of 9068

<< Justice seeking a possible breakup of Microsoft. What are the implications to the software industry as a whole >> While someone is at it, could he also deliberate on the implications to the solar system as a whole should Justice seek to break up the sun?

To: Chuzzlewit who wrote (6851)	7/30/1999 12:52:00 AM
From: David Montgomery	Read Replies (1) \| Respond to of 9068

I Think You Have it Right. Justice doesn't have much to do with reality. If they opt to break up Microsoft, everyone who owns Microsoft benefits. Microsoft has a fairly broad market ( :-) ) now and will only continue to grow. Citrix (IMHO) will benefit now from the fact that if Microsoft tries to put Citrix out of business with new "Windows Operating System" features, Microsoft will only facilitate the breakup - that strengthens Citrix's position. It's a win - win - win situation.