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Prepare for 10% Citrix price hike

Citrix users will have to pay 10% more for their Citrix Xenserver virtualisation software, Metaframe Windows thin client software and NetScaler network acceleration tools from September.

The supplier has sent a letter to its authorised distributors across Europe, Middle East and Africa, giving them advanced notice of the increase.

Citrix blamed the price hike on rising costs of doing business globally, following the falling value of the US dollar (upon which Citrix pricing is based) compared to other currencies.

It comes despite booming profits at Citrix. In the second quarter of 2008 Citrix reported double-digit growth, with the EMEA region of 22%, making £68m in revenue.

The price increase could lead to Citrix users looking at alternative technologies. Some companies have actively moved away from Citrix - because of the cost of licensing the Metaframe product - and have adopted Microsoft's Terminal Services, which is built into Windows Server 2008.

For instance, earlier this year Tube Lines, which maintains the Jubilee, Northern and Piccadily London Underground lines, looked at the free Terminal Services software bundled with Microsoft Windows Server as an alternative to Citrix Metaframe software.

At the time, Adrian Davey, head of IT at Tube Lines told Computer Weekly, "I was frustrated that we had to use Citrix to [provide PC desktop] software at remote sites. We needed both Citrix and Microsoft Windows Server licences."

Through Microsoft's early adopter programme, he asked Microsoft to assess how Tube Lines could replace Citrix. "By working with Microsoft we have developed a Terminal Services product, which long-term, could enable us to get rid of our Citrix Metaframe server farm."


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