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72 hours after the XenDesktop 4 announcement
In the past 72+ hours after the announcement of XenDesktop 4, I have seen several positive comments written up by esteemed bloggers such as Chris Wolf (Burton Group), Dan Kuznetsky, Brian Madden, Doug Brown, the 451 Group, and more, reinforcing our mission to make desktop virtualization as the solution to the outdated desktop management practices.
In addition, I have personally had several 1:1 conversations with customers and partners and the feedback I have received has been extremely positive. In fact, I was visiting a healthcare customer today and when they heard about XenDesktop 4 - they loved it and when I told them about the Trade-up program, they were excited and wanted to move forward with it ASAP.
Licensing - what? why? hmm!!!
Licensing for XenDesktop 4 has certainly created some discussions in the blogosphere. The user-based licensing in XenDesktop 4 means that customers pick the users they want to deliver virtual desktops or apps to. In addition, it offers the ability to reassign a license from one user to another. For example, in a scenario where an employee quits an organization - the license can be reassigned to another employee. The licensing works perfect for the mainstream use cases where customers are rethinking their desktop management and applying the power of all types of virtual desktops and applications across a range of users. And, the licensing makes even more sense when you implement local VM-based desktops with offline use. In my conversations with the customers and partners, we have found that the licensing works well for majority of customers and prospects.
However, we have also seen comments that user-based licensing does not work for certain use cases, for example - student labs in schools or Universities or shared devices in a healthcare facility. First of all, I want to state that majority of these comments have reinforced that XenDesktop 4 is a solid product that addresses customer requirements, and customers are extremely interested in using the product for their implementations. Citrix's goal is to enable organizations to adopt desktop virtualization and address all enterprise use cases and not restrict usage for any specific use case scenario.
Is Citrix doing something about it?
We have received the customer feedback and we are actively investigating appropriate licensing programs for XenDesktop 4 to address these use cases. We believe that all customers should be able to adopt desktop virtualization enterprise-wide and reshape their desktop computing, and we stay committed on that mission. We are in the process of collecting some more information and we plan to share our solution to address these requirements within 30 days.
How can you help?
Finally, we recently launched a survey to collect more information on how our customers plan to start their desktop virtualization projects with XenDesktop 4. It takes less than 5 minutes to fill it up with mostly multiple choice questions. I encourage everyone to give us your direct input on your use cases. It will help us enhance our product offering overtime and guide us to offer appropriate licensing programs immediately. CLICK HERE TO PROVIDE FEEDBACK
Thank you for interest and support in Citrix and XenDesktop 4. We are open to input so we can serve you with the right products and programs.
Don't forget to attend our online event - we will talk licensing a bit more then!
Comments (24)
Oct 09
Greg Kern says:
With all due respect, this piece is mostly full of Marketing-speak, and does not...With all due respect, this piece is mostly full of Marketing-speak, and does not squarely address the concern that most of us Partners and our Customers are concerned about: The Per-Named-User licensing model. From everything we've all read about it, this is a 1-to-1 model, VERY expensive, and nowhere NEAR as valuable and versatile as a Con-Current User (1-to-Many) model...
I find it hard to imagine ANY Customer, in ANY vertical, who would think that this is a great deal, especially coming from Citrix, whose claim to fame, for years, has been a centralized, single-App-to-many-Users model, licensed, appropriately, as CCU... Why in the world they have begun viewing Desktops as anything other than just another published App is really beyond me...
Citrix better fix this fast: We're hearing significant backlash from Customers (and potential Customers) over this already...
Oct 09
Anonymous says:
How about providing a similar survey asking customers opinion of the new licensi...How about providing a similar survey asking customers opinion of the new licensing model with nothing more than a (Yes/No) like or dislike and a place for comments.
Then:
1. Send they survey link to every customer email distribution list.
2. And have every Citrix employee tweet the link just as much as they artificially advertised XD4 on Twitter.
3. Run the survey for 2 weeks.
4. Post statistics and comments in a public forum.
Most of us have an assumption of what the numbers would look like.
We can understand any decision from a profit margin perspective, but if you seek feedback, you may potentially find that popular opinion regarding the change....may also impact the same profit margins you're looking to improve upon in a negative manner.
Oct 09
Anonymous says:
"Citrix better fix this fast: We're hearing significant backlash from Cust..."Citrix better fix this fast: We're hearing significant backlash from Customers (and potential Customers) over this already..."
I am a current XenApp customer and potential XenDesktop customer. If licensing is handled on a per user basis, Citrix will not be a player in our desktop environment redesign. Why would I want to buy licenses for 15,000 users when only 800 at a time are using your product? Then on top of that, pay assurance on the new licenses.
Along with renaming products and clients every quarter, this is just the latest in the long line of marketing blunders by Citrix.
I don't think you will like the feedback you are seeing in the survey.
Oct 09
Anonymous says:
I work for a very large firm that has a very big XenApp and VDI population (non ...I work for a very large firm that has a very big XenApp and VDI population (non XD right now). This new licensing model will steer our management to either keep using the VDI broker we have today (non XD that does CCU licensing) or look at another product that will do CCU licensing. CCU licesning for an environment our size with users globally makes finiacial sense and it would be cost prohibitive for us to move to a Non CCU model.
Wake up guys!! You have an awesome feature set with XD (especially XD 4) and you are going to screw it up with this new license model.
Oct 09
Simon Bramfitt says:
Citrix is one of very few companies that has adopted and maintained a concurrent...Citrix is one of very few companies that has adopted and maintained a concurrent user based licensing model and the majority of customers have done very well by it. It is entirely understandable that fter so many years of living with (and loving) a CCU licensing model, the transition to users based licensing is going to take a little getting used to. One thing that appears to be lost to the majority of people commenting on this topic is that what Citrix are doing here is to align their licensing model with that of the rest of the industry and with the physical world.
A global company that has seen an artificial reduction in the number of XenApp licenses needed to support its workforce because they are able to take advantage of a follow the sun working model is going to see a small increase in CapEx desktop delivery costs here. But the cost of an XD4 license in very small in comparison to the cost of delivering the entire physical desktop and all the s/w deployed on it. No one ever complains about the fact that for more than 75% the time a physical PC sits idle (usually powered on) consuming capital that could be used elsewhere, but now that for the first time Citrix are adopting a licensing model that more closes matches the service being provided, a 'virtual' riot breaks out.
I'd offer the following advice to those people who are concerned about the costs of XD4.
Assess the functionality
Read the fine print on licensing and see if you can accommodate the terms successfully
Wait for further announcements on licensing deal for your vertical
Do the math and work out the ROI
If the ROI looks good negotiate a deal then adopt
If the ROI looks bad negotiate harder then adopt
But don't get hung up on the sticker price when you are making a long-term investment in your desktop delivery capability
regards
Simon
Oct 09
Steven Hunt says:
I hear quite a bit of hesitation about the per user license model from our custo...I hear quite a bit of hesitation about the per user license model from our customers until we begin to talk about what exactly XenDesktop 4 does. When you really look in depth at the product it complete changes/replaces the way you deliver desktops and applications to the users. There are a lot of soft costs you must measure on a per user bases when it comes to delivering a physical machines, OS, applications and subsequent resources. When evaluating this you see that the per user cost of XenDesktop is a drop in the bucket because of what exactly it can do for you organization.
Oct 09
Tyrone Thomas says:
Ultimately, per user is the correct model for the new wave of application and de...Ultimately, per user is the correct model for the new wave of application and desktop delivery capabilities. Citrix has been brave to move forward with it and everyone else will follow in time - including you Microsoft! - however i think this announcement in it's current form/guise was premature and malformed.
Desktop virtualisaton has only just reached a point of acceptance as a concept that could help business. Still the primary inhibitors are cost and technical maturity.
The majority of real world deployments today are still currently evaluation or small deployments, planning to ramp up over time, as requirements and budgets allow (Am aware of the big showcase customers publicised)
For most, desktop virtualisation today is primarily being considered as supplementary to traditional desktop provision and deployment - not yet as the strategic and default mode of desktop delivery - although this is the Citrix vision - as well as everyone else concerned with desktop virtualisation.
A number of partners I've spoken to, are now having to revisit business cases as the new licensing model has blown them apart - in particular for their customers in education and public sector (health and local authority). And not just for the first year but even more so for yr2,3, 4 and beyond as subscription advantage is levied on the now increased number of licenses.
What would have been better, would have been to start by educating the market, and as the feature set grows, unveil the benefits of how desktop virtualisation and for Citrix - XenDesktop in particular - is a viable alternative to traditional desktop provision - this could be done at relative pace - however this big 'whammy' has left a lot of people choking - the path/bridge to transition is broken, and we're now of the edge of the chasm.
As well the ecosystem/market education - Citrix need to move quickly to clarify and reconcile licensing and component/feature/product entitlement across all of delivery centre.
The easy answer is buy Platinum and you get everything - but in reality this won't be applicable or possible for everyone.
Finally - the questions in the survey won't provide you with an accurate reflection the feeling of the market with regards to the XD4 licensing changes - the questions are written from a viewpoint that only considers XenDesktop in isolation being applied to a greenfield site - where the reality is that XenDesktop is primarily being considered by those who already know and use Citrix in some other form already - i.e XenApp
At the end of the day, the key issue in focus is not the model but the pricing - this is where Citrix should focus its efforts in the next 30days.
Oct 09
Anonymous says:
Simon, that is all fine and good but you have to take into account that VDI is a...Simon, that is all fine and good but you have to take into account that VDI is a new technology. CCU gave us the ability to ease VDI into the environment and allow all users to try it. Just as Power plants are built to their maximum capacity, the CCU model would have allowed you to get the number of licenses you wanted anyway as VDI gained acceptance in your environment. Why not let the product expand through grass roots the way XenAPP has for years. You start with a small farm and it expands as you are successful.
This new licensing model now forces you to make a much larger commitment to VDI than many of us were expecting or ready for. Regardless of the extensive merits of XD4, decision makers and "C-Level" executives may not be ready to make a PNU commitment to this technology. If your XD implementation was going to service 500 people with 200 licenses and now you have to go back to management, when budgets are shrinking, and say it is going to cost XX amount more you are going to get a rude reception.
This isn't just a matter of needing to sell VDI to the IT brass, several System engineers see the cost savings in VDI but that doesn't mean you are just going to walk into a room and say 'time to get rid of the desktops'. I feel like Citrix is banking on the fact that there is cost savings to moving to VDI because you won't need the same desktops anymore. That gap hasn't been bridged or accepted by the industry just yet and the idea that the industry is ready to jump feet first into VDI is delusional. Not six months ago I had a conversation with the Cloud Computing manager for a VERY large Systems Integrator and he stated that he did not see the value in VDI. Sure, eventually he will see the value, or a competitor will beat him to it but this is the mentality of several decision makers in this industry today.
For us, the blood hasn't even dried yet from the VMWare View fight we just finished and now we are going to deal with the fact that View is CCU and XD is now PNU.
Nearly all of us think VDI is the way to go and most of us believe Citrix is holding the hammer at a time when the technology iron is very hot. You need to focus on shaping the technology and not your licensing model as the budget iron seems to be stone cold these days.
At its current cost, I am going to have a very hard time making a case for XD in my environment.
This was the wrong time for this move, let your product get some penetration before making this kind of a change.
My worry is not being able to sell it and having XD4 taken off the table for us. To make a large investment in VDI today, for several decision makers, is a leap of faith at a time when the financial safety net has been removed. No matter how secure it is, some of them just won't do it.
I appreciate your post, obliviously you have had some success getting this sold in your market but some of us are still working to get this technology accepted.
John Smith
Oct 09
Simon Bramfitt says:
John There's no doubting that an increase in the sticker price will generate pu...John
There's no doubting that an increase in the sticker price will generate push-back, but we have to accept that Citrix are aware of this and may well bend to pressure to relax pricing for early adopters.
Let's not forget that most XenDesktop early adopters will be existing XenApp accounts and will have licenses to trade up to XenDesktop, so the cost will be lower than it would be to go out and by any VDI solution from scratch. The cost increase to move up to XD4 is very close to the cost of paying Subscription Advantage for XenApp and is a small fraction of the overall cost of implementing any VDI solution.
Regards
Simon
Oct 09
Anonymous says:
We are using both products. Wr are thinking to stop the XenDestop deployment due...We are using both products. Wr are thinking to stop the XenDestop deployment due to the license change. We are also afraid that Citrix will change the XenApp licensing model next.
Citrix better fix this fast.
Oct 09
Anonymous says:
Yes, this change is also causing us to reconsider our deployment. The new licens...Yes, this change is also causing us to reconsider our deployment. The new licensing simply won't work for us.
Oct 09
Anonymous says:
I was going to start a pilot with XenDesktop but knowing what is coming, I am go...I was going to start a pilot with XenDesktop but knowing what is coming, I am going to reconsider and start looking other solutions.
Oct 11
Anonymous says:
As someone said above - most of the customers who is looking to go to XenDesktop...As someone said above - most of the customers who is looking to go to XenDesktop is XenApp customers who wants both worlds (published desktop and VDI).
XD is a perfect product for that and we have had a lot of projects and interest - now is these projects completely dead according to the change from concurrent users.
Therse no meaning to talk ROI as someone did above, yes we now that XD has a great ROI - but if VMware View give a better ROI with concurrent licensing, the customer will choose that!
For example:
We have healthcare company with 9000 users but only 2000 concurrent. They have today 2000 XenApp Platinum licenses. They wants to use both XA and XD for all of their users beacuse they sometimes needs XD instead of XA.
Trade in 2000 XA Platinum to 4000 XD Platinum = 2000 x $135 = $270.000
5000 new XD licenses = 5000 x ($350-50%) = $875.000
NEW INVESTMENT TO CHANGE TO XD 4 = $1.145.000
SA cost today = ($75-25%) 2000 x $56,25 = $112.500
SA cost tomorrow = ($50-25%) 9000 x $37.50 = $337.500
I can guarantee - that will never happen!!
We have a lot of examples with the same figures.
And I dont really get Citrix argument with this 24/7 discussion? If Citrix employees works 24/7 - good for Citrix. Most of the employees in the rest of the world works 7-8 hours a day!!
Oct 11
Anonymous says:
The game changer today is that the hypervisor has rendered the OS as an applicat...The game changer today is that the hypervisor has rendered the OS as an application itself to be delivered. The value proposition of the FlexCast model is the reduction of cost and complexity associated with distributing the most expensive application in the network today, the OS application. It is the OS application that is there 24/7. Getting that OS application there at the least cost to the business is the value inherent to the product.
Your issue with the hospital is interesting. You mention that the hospital wants to use XA and XD for all of their users. The reasoning is that the hospital sometimes needs XD instead of XA. There is a disconnect here.
XA continues to remain a CCU product, and for users exclusively accessing XA, the 22% CCU rate should continue. With regard to XD at the hospital, how many of the users will be using XD is the question. If indeed all of them will be using XD, then the prices are as stated.
So, back to the numbers. What is the percentage breakdown on XD users? Let's say that 40% of the hospitals users will leverage XD, 3600 users. To maintain current CCU of 22% the hospital will need to pick up some additional licenses for remaining users,900 license purchase to offer 1188 CCU for 5400 employees should do the job.
Trade in 1800 XA P for 3600 XD P = 1800 x $135 = $243,000
Purchase XA for 22% CCU (5400 x .22) 988 x ($600 - 50%) = $296,400
Total Yr 1 Cost = ($243,000 + $296,400) + (SA on 200 x $56.25) = $550,650
Yr 2 SA = XD (1800 x $37.5) + (988 x %56.25) + (200 x $56.25) = $134,327
Yr 3 SA = XD (1800 x $37.5) + (988 x %56.25) + (200 x $56.25) = $134,327
Total 36 month cost for change = $819,304
Total 36 month current SA= $337,500
Total 36 month Cost differential = $481,804
Annual ROI break even target = $160,601
So, the question becomes, how do I save $220,000 per year while leveraging Citrix Flexcast technology and XD 4.0. Balance this against a do nothing approach where I am not saving $220,000 dollars, while continuing to spend $112,500, and still not meeting the use case that makes XD so attractive in the first place...is no balance IMHO.
Interesting to note that ongoing SA is $134,327 versus $112,500, which does not strike me as so horribly difficult given the cost justifications required to move forward with the project.
The business of changing our working world into a more productive and profitable enterprise is about change. The tools to change business to operate productively and profitably with Flexcast and XD have never been better. It can be done, more importantly it should be done!
RTE
Oct 12
Anonymous says:
You can say what you want. This is a numbers game. Who benefits? The end user...You can say what you want. This is a numbers game. Who benefits? The end user or Citrix?
Stick with it and they will probably make more revenue than a CCU model, but at what cost?
Stupid but well calculate move Mr numbers man.
Oct 12
Greg Kern says:
Simon, you posted this: "...But the cost of an XD4 license in very small in com...Simon, you posted this:
"...But the cost of an XD4 license in very small in comparison to the cost of delivering the entire physical desktop and all the s/w deployed on it. No one ever complains about the fact that for more than 75% the time a physical PC sits idle (usually powered on) consuming capital that could be used elsewhere, but now that for the first time Citrix are adopting a licensing model that more closes matches the service being provided, a 'virtual' riot breaks out."
Again, trying to be respectful, I have to say I just don't think you get it: It seems ridiculous to try and justify the costs of a XD4 PNU license with what a Physical PC costs. That's like saying a common cold isn't so bad compared to pneumonia. One of the biggest drivers of Citrix's success over the years has been that they've helped companies move AWAY from the very expensive Physical Desktop model (hardware, software, and an army of Support techs) to a centralized, install-once-deploy-to-many type infrastructure. Now you're going to raise the "cost of a Desktop" model again, as a "justification" for XD4?
Bottom line here is this: Your CUSTOMERS and potential Customers are telling you, directly, that a PNU licensing model for ANY Citrix product is a BAD IDEA and they'll begin (or continue to) reject your products if they're licensed that way. How will you respond??
Oct 12
Anonymous says:
Citrix needs three models 1) Per user good for many people and credit to them f...Citrix needs three models
1) Per user good for many people and credit to them for taking the leap
2) Per device for those that need this to manage just machines.
3) CCU, for shared environments. Yes it can cost more than the per user license. Make it the same as XA. This may be add XD to XA for a CCU users.
Having all the options let's people get to the eventual model 1 of per user over time. That's how you win mind share Citrix and kill VMware. This is just a gift to VMware that you need to wake up to. Think for god sake! It's ok to bring back a CCU model, customers will adore you for it. It's ok, not egg on you face, just do the right thing and listen to option 3 or a variant. It will have a HUGE impact on your adoption. VMware are sitting there praying you don't do it. THINK what your customers want.
Oct 12
Terry Anderson says:
I think the deeper issue here is that many of the customers we deal with have be...I think the deeper issue here is that many of the customers we deal with have become conditioned to the CCU model with Citrix products, and have used this model in beginning to calculate their costs and ROI numbers with XD as well. I would not dispute the fact that there is a place for a per user license model for both XD or XA, as this is something that we have discussed with clients and Citrix for several years around XA. The issue I have with this particular change is the sudden and arbitrary nature of the change. This license model fundamentally changes all of the financial models we have done to this point with customers around XD, with a limited time frame (40 days) for these adjustments. This will not be well received by clients, regardless of how much spin Citrix applies to it.
Citrix will have to provide both a CCU and a per user license model for some transitional period to allow customers to proceed with their adoption plans, or risk alienation in the VDI market.
Oct 13
Domenic Alvaro says:
I always use Citrix as an example of how licensing should be, with regard to Xen...I always use Citrix as an example of how licensing should be, with regard to XenApp concurrent user licenses. It's simple and everyone understands how it works.
On the other hand, Microsoft Terminal Service licensing gets complicated with per-user or per-device CALs and the inability to re-assign licenses.
If Citrix is going to stick with a per-user license model for XenDesktop, then it should also consider a per-device model for organisations where the number of users far outnumbers the number of client devices, such as schools and universities.
Either way, the concurrent user model is easier to sell, manage and increase at a later stage. I'd hate to see it go.
Oct 13
Anonymous says:
I loved CCU for the ROI, and I reached a point when I needed a license for all m...I loved CCU for the ROI, and I reached a point when I needed a license for all my users I simply bought more, and signed an enterprise agreement, in effect moving to per-user covering XA and XD. That was simple.......
What Citrix have done here is shown they don't understand the Desktop market and dont't talk to REAL customers and partners. A bunch of suits in CA that make decisions that screw shareholder value. VMware sucks so this leaves me no choice but to ignore VDI. What a disaster since I has hoping to leverage Windows 7 to get this started for about 20% of my population and grow to disaster recovery and beyond for me. This has completely killed the project unless I decide to implement on XA, which I think is my only choice.
To the poster above with the 3 models above. I think there is forth model. XD CCU standalone or they drop the price of XD 4 to get close.
Oct 13
Anonymous says:
For our case we are looking at dropping XenDesktop and keeping our pooled deskto...For our case we are looking at dropping XenDesktop and keeping our pooled desktop to leverage VM hosted apps. The new licensing model for XenDesktop does'nt fit our CCU ratio and we can't trade in our XenApp licenses because the ratio is even higher.
Shame, XenDesktop was a promising product but Citrix just killed it
Oct 14
Anonymous says:
"...But the cost of an XD4 license in very small in comparison to the cost of de..."...But the cost of an XD4 license in very small in comparison to the cost of delivering the entire physical desktop and all the s/w deployed on it. No one ever complains about the fact that for more than 75% the time a physical PC sits idle (usually powered on) consuming capital that could be used elsewhere, but now that for the first time Citrix are adopting a licensing model that more closes matches the service being provided, a 'virtual' riot breaks out."
This still makes no sense. End point devices with the desktop receiver installed will still be powered on Most of the time, whether they are thin clients or PCs. Until Citrix can deliver VDIs to a mossy stone or an empty cardboard box, companies will continue to be required to replace old PCs through attrition and replace/repair Thin clients. Thus having to pay for OS licenses on the PC plus Microsoft VECD license, plus XD4 named user. I don't see any savings for potential clients here with the new license model.
Oct 14
Anonymous says:
Wr are thinking to stop the XenDestop deployment due to the license change. I th...Wr are thinking to stop the XenDestop deployment due to the license change. I think that Citrix will change the licensing model for XenApp next from CCU to Per-user.
Oct 20
Anonymous says:
Since we are looking to offer desktops to our users it makes sense for Citrix to...Since we are looking to offer desktops to our users it makes sense for Citrix to adjust the model. This is not an app that only some people use at some point in time, so CCU does not apply. Our current POCs of XD and View are going forward and the lower price of XD makes it look even more attactive. Not to mention the full XenApp license.
The change to user based license compared to CCU changes nothing for us. Our users are in a desktop during the business day, all of them. It comes to the same number however you look at it.
I understand some people want the CCU model but don't assume that the rest of the world shares your opinion. The recent change has only helped us.
So far View can't match XenDesktop. With XD v4.0 I expect View to become less of an issue.
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