How Citrix Systems Inc. (NASDAQ:CTXS) and VMware Inc. (NYSE:VMW) Are Feeling The Brunt Of Cloud Offering By Amazon.com Inc. (NASDAQ:AMZN)
In the fast paced world of Information Technology, today’s market leader can be easily pushed back into the position of a laggard, thanks to the rapidity with which disruptive technologies are being developed by new age companies. In a scenario which follows the above script, we are finding today that yesterday’s best of the breed technology providers like Citrix Systems, Inc. (NASDAQ:CTXS) and VMware, Inc. (NYSE:VMW) are facing heavy headwinds at the browsers thanks to the announcement by the $168 billion market capped internet technology giant Amazon.com, Inc. (NASDAQ:AMZN) that it would be soon be offering desktop virtualization business sector.
The entry of Amazon.com, Inc. (NASDAQ:AMZN) into the virtual machines space is a clear warning for the smaller firms which have their entire portfolios built around their virtualization space. The reason for the distress on part of investors of (NASDAQ:CTXS) and VMware, Inc. (NYSE:VMW) is due to the fact that these smaller firms will face a bigger competitor with deep pockets ready to plough in huge resources to capture their customer base in the virtualization space.
Amazon.com, Inc. (NASDAQ:AMZN) had recently announced that its “Amazon Web Services unit will enter the desktop virtualization market to boost its cloud computing business”. The announcement came in the form of blog post by the cloud computing pioneer. It had indicated that it is all set to launch its desktop virtualization product under the brand of “Amazon WorkSpaces” in the first quarter of 2014.
As with all other cloud based services that Amazon.com, Inc. (NASDAQ:AMZN) has been pioneering, this virtualization service too is being offered in the form of Infrastructure as a service. The beauty of this business model is that customers can log on from anywhere in the globe via an internet connection to access the service and pay for only that services that they use.