Microsoft's strategic relationship with thin-client
specialist Citrix seems to have done more for sales of Windows,
says Simon Moores.
I found my neatly ironed, black "Citrix" monogrammed
shirt hanging in my wardrobe today. It’s a long time since I last
wore it, and it made me stop and wonder how the arrival of Windows
Server 2003 has impacted what was once a highly lucrative
‘thin-client’ computing niche, dominated by Citrix.
Once upon a time the world was hell-bent on a course towards
thin-client computing and industry figures were writing the
obituary of the personal computer, which was to be replaced by
network computers or ‘thin-clients’ or even Java-powered devices,
courtesy of Lotus Development and its eSuite.
Nothing quite happens to plan in this business but Microsoft,
careful to hedge its bets with Windows NT, developed a strategic
relationship with Citrix, the darling of the thin-client
revolution.
Citrix created a completely new way of looking at Windows
systems based on the mainframe experience of Ed Lacobucci, its
founder. Thin-client meant better management, lower operating cost,
more mobility and best of all, a break between the hardware and the
software upgrade cycles.
Unfortunately, in practice, the technology didn’t quite deliver
the economic benefits that were promised. Why not? Well, once it is
developed, software does not cost anything to manufacture so it is
difficult to price. Suppliers therefore tend to set prices based on
“value to the customer”. In other words, they maximise the return
on each client. In the case of thin client, Citrix charged a
licence fee for every client, which made thin-client computing
rather more expensive than it should have been.
All right, it was all rather more complicated than this, but the
results had Microsoft steadily building more thin-client technology
into Windows, while Citrix increasingly specialised in the
added-value department, as Microsoft nibbled-away at its
functionality in every new Windows Server release.
Today, if you are running a mixed environment with non-Windows
clients and Unix servers, Citrix still has a place in your IT
strategy. Otherwise, its role is less clear.
Mark Tennant, Microsoft’s Windows Server 2003 product manager
remarks a little more diplomatically, “Windows gives users the
basic terminal services in Windows 2003 but Citrix strengthens the
proposition by offering additional value, which includes single
sign-on and mixed client support."
Functionally, things have, however, changed between Windows NT,
Windows 2000 and Windows 2003 in a way, which could save customers
an average of £100 per client, according to James Barden of
thin-client specialist Insite (Europe).
According to Barden, “Even using Windows 2000 Server, delivering
thin-client services to users without costly Citrix client licences
meant compromises in usability, screen quality and manageability.
Microsoft’s Windows 2003 sees the majority of Citrix functionality
now included in the standard product. For Citrix, this represents a
commercial problem, but for businesses striving to strip cost out
of projects, it represents a huge cost advantage.”
So there you have it, upgrading to the latest version of Windows
may actually reduce overall computing costs, with a 60% reduction
in the risk of security compromise as a bonus.
If Barden has his sums right, then Windows 2003, deployed in
areas, such as the public sector, where thin-client computing is
popular, could spell the end of one of the great myths of our time,
up there with weapons of mass destruction and the return of
Elvis.
Driving down the total cost of ownership with Windows might be
true after all?
What do you think?
Do you think thin-client computing still adds up?
Tell us in an e-mail
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Setting the world to rights with the collected thoughts and
opinions of leading industry analystDr Simon
Mooresof Zentelligence.
Acting globally, Zentelligence (Research) advises
governments, suppliers, business and the media on the evolution,
application and delivery of leading-edge technologies and
specialises in the areas of eGovernment and information
security.
For further information on Zentelligence and its research,
presentation and analyst services visitwww.zentelligence.com