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DESKTOPS AS A SERVICE New approaches to desktop management from cloud service providers As end users become more demanding consumers of IT, and desktop environments become increasingly complex and distributed, organizations are looking for third- party options to handle these challenges. 4 FINDINGS • With the consumerization of IT, the goal is to accommodate increasingly demanding end users and the myriad devices they use to access their applications and data. PAGE 1 • Shared, session-based computing is still the most common form of hosted desktop virtualization. PAGE 5 • The future of VDI depends on service-provider licensing agreements that meet most parties’ needs. Whether these emerge depends on how Microsoft decides to work with service-provider partners. PAGE 7 • Interest in third-party DaaS is at a fever pitch, especially in light of increasingly complex, and difficult to manage, distributed desktop environments. SMBs are early adopters. PAGE 2 5 IMPLICATIONS • The major desktop virtualization players must partner with service providers and develop virtualization management expertise to remain relevant in cloud-based, centrally managed markets. PAGE 10 • IT should expect to manage environments with a combination of virtual applications, VDI, and cloud- based and local physical desktops. PAGE 2 • Organizations need to figure out how to comply with Microsoft licensing if they want to adopt DaaS. In many cases, VDI as a service (VaaS) is too expensive, making session-based computing a more viable alternative. PAGE 7 • Desktop virtualization vendors need to expand their story beyond session-based computing and VDI. The onslaught of HTML5-ready Web applications is a driver here. PAGE 8 • Organizations will need to look at IT as a competitive differentiator, not just another drain on the budget. PAGE 1 BOTTOM LINE • At the very basic level, we define ‘desktops as a service’ as any combination of session-based computing, a desktop connection broker, user and application virtualization, a protocol or client hypervisor, and network, security and storage optimization – plus a hosting partner. As it stands now, there is much confusion about DaaS, and whether it will mean VDI as a service or session-based computing, and how much HTML5 might displace both of these models. FEBRUARY 2012 THE 451 GROUP: INFRASTRUCTURE COMPUTING FOR THE ENTERPRISE © 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED. ICE INFRASTRUCTURE COMPUTING FOR THE ENTERPRISE

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Page 1: DESKTOPS AS A SERVICE - WordPress.com...isn’t resting on those laurels as Hyper-V gains market share. VMware’s DaaS strategy VMware’s DaaS strategy is highly partner-centric,

DESKTOPS AS A SERVICENew approaches to desktop management from cloud service providers

As end users become more demanding consumers of IT, and desktop environments

become increasingly complex and distributed, organizations are looking for third-

party options to handle these challenges.

4 FINDINGS•WiththeconsumerizationofIT,thegoalistoaccommodateincreasinglydemandingendusersandthemyriaddevicestheyusetoaccesstheirapplicationsanddata.PAGE 1

• Shared,session-basedcomputingisstillthemostcommonformofhosteddesktopvirtualization.PAGE 5

• ThefutureofVDIdependsonservice-providerlicensingagreementsthatmeetmostparties’needs.WhethertheseemergedependsonhowMicrosoftdecidestoworkwithservice-providerpartners.PAGE 7

• Interestinthird-partyDaaSisatafeverpitch,especiallyinlightofincreasinglycomplex,anddifficulttomanage,distributeddesktopenvironments.SMBsareearlyadopters.PAGE 2

5 IMPLICATIONS• Themajordesktopvirtualizationplayersmustpartnerwithserviceprovidersanddevelopvirtualizationmanagementexpertisetoremainrelevantincloud-based,centrallymanagedmarkets.PAGE 10

• ITshouldexpecttomanageenvironmentswithacombinationofvirtualapplications,VDI,andcloud-basedandlocalphysicaldesktops.PAGE 2

•OrganizationsneedtofigureouthowtocomplywithMicrosoftlicensingiftheywanttoadoptDaaS.Inmanycases,VDIasaservice(VaaS)istooexpensive,makingsession-basedcomputingamoreviablealternative.PAGE 7

•Desktopvirtualizationvendorsneedtoexpandtheirstorybeyondsession-basedcomputingandVDI.TheonslaughtofHTML5-readyWebapplicationsisadriverhere.PAGE 8

•OrganizationswillneedtolookatITasacompetitivedifferentiator,notjustanotherdrainonthebudget.PAGE 1

BOTTOM LINE• Attheverybasiclevel,wedefine‘desktopsasaservice’asanycombinationofsession-basedcomputing,adesktopconnectionbroker,userandapplicationvirtualization,aprotocolorclienthypervisor,andnetwork,securityandstorageoptimization–plusahostingpartner.Asitstandsnow,thereismuchconfusionaboutDaaS,andwhetheritwillmeanVDIasaserviceorsession-basedcomputing,andhowmuchHTML5mightdisplacebothofthesemodels.

FEBRUARY 2012

THE 451 GROUP: INFRASTRUCTURE COMPUTING FOR THE ENTERPRISE© 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

ICE INFRASTRUCTURE COMPUTING FOR THE ENTERPRISE

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THE 451 GROUP: INFRASTRUCTURE COMPUTING FOR THE ENTERPRISE i © 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

ABOUT 451 RESEARCH 451 Research, a division of The 451 Group, is a leading global analyst and data company focused on the business of enterprise IT innovation. Clients of the company — at end-user, service-provider, vendor and investor organizations — rely on 451 Research’s insight through a range of syndicated research and advisory services to support both strategic and tactical decision-making.

© 2012 451 Research, LLC and/or its Affiliates. All Rights Reserved. Reproduction and distribution

of this publication, in whole or in part, in any form without prior written permission is forbidden.

The terms of use regarding distribution, both internally and externally, shall be governed by the

terms laid out in your Service Agreement with 451 Research and/or its Affiliates. The information

contained herein has been obtained from sources believed to be reliable. 451 Research disclaims

all warranties as to the accuracy, completeness or adequacy of such information. Although 451

Research may discuss legal issues related to the information technology business, 451 Research

does not provide legal advice or services and their research should not be construed or used as

such. 451 Research shall have no liability for errors, omissions or inadequacies in the informa-

tion contained herein or for interpretations thereof. The reader assumes sole responsibility for

the selection of these materials to achieve its intended results. The opinions expressed herein are

subject to change without notice.

New York20 West 37th Street, 6th Floor

New York, NY 10018

Phone: 212.505.3030

Fax: 212.505.2630

San Francisco140 Geary Street, 9th Floor

San Francisco, CA 94108

Phone: 415.989.1555

Fax: 415.989.1558

London37-41 Gower Street

London, UK WC1E 6HH

Phone: +44 (0)20.7299.7765

Fax: +44 (0)20.7299.7799

Boston125 Broad Street, 4th Floor

Boston, MA 02109

Phone: 617.275.8818

Fax: 617.261.0688

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ii DESKTOPS AS A SERVICE© 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

TABLE OF CONTENTS

SECTION 1: EXECUTIVE SUMMARY 1

1.1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . 1

1.2 KEY FINDINGS . . . . . . . . . . . . . . . . . . . . . . . 2

1.3 METHODOLOGY . . . . . . . . . . . . . . . . . . . . . . . 3

SECTION 2: THE STORY SO FAR 5

2.1 SESSION-BASED COMPUTING . . . . . . . . . . . . . . . . . . 5

2.2 VDI . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2.3 APPLICATION STORES. . . . . . . . . . . . . . . . . . . . . 6

2.4 MICROSOFT LICENSING . . . . . . . . . . . . . . . . . . . . 7

2.5 HTML5 . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2.6 DAAS ADOPTION . . . . . . . . . . . . . . . . . . . . . . 9

SECTION 3: SERVICE PROVIDERS 10

3.1 DESKTONE . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.2 DINCLOUD . . . . . . . . . . . . . . . . . . . . . . . . . 10

3.3 RACKSPACE . . . . . . . . . . . . . . . . . . . . . . . . 11

3.4 NIVIO . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

3.5 NGENX . . . . . . . . . . . . . . . . . . . . . . . . . . 13

SECTION 4: CASE STUDIES 14

4.1 FREED-HARDEMAN UNIVERSITY – DESKTONE . . . . . . . . . . . 14

4.2 ENFORM TECHNOLOGIES – WANOVA . . . . . . . . . . . . . . . 15

4.3 IMMIGRATION ATTORNEYS – DINCLOUD . . . . . . . . . . . . . 15

SECTION 5: SURVEY DATA, MARKET SIZING AND M&A 17

5.1 SURVEY DATA . . . . . . . . . . . . . . . . . . . . . . . 17

Figure 1: Survey Question – What Percentage of Desktops Are or Will Be Virtual-

ized in 2011? In 2012? . . . . . . . . . . . . . . . . . .17

Figure 2: Survey Question – What Is the Status of Your Desktop Virtualization

Project? . . . . . . . . . . . . . . . . . . . . . . .18

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5.2 MARKET SIZING . . . . . . . . . . . . . . . . . . . . . . . 19

Figure 3: The Desktop Virtualization Ecosystem Market Opportunity . . . .19

5.3 M&A . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

SECTION 6: ADJACENT MARKETS 20

6.1 THIN CLIENTS AND MOBILE DEVICES . . . . . . . . . . . . . . . 20

6.2 IDENTITY AND ACCESS MANAGEMENT . . . . . . . . . . . . . . 21

INDEX OF COMPANIES 22

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THE 451 GROUP: INFRASTRUCTURE COMPUTING FOR THE ENTERPRISE 1 © 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

SECTION 1 Executive Summary

1.1 INTRODUCTION

Now that most organizations have their servers virtualized, they can turn their attention

to virtualizing their desktops. Many enterprise IT administrators that started desktop

virtualization pilots expected those to work in exactly the same way as server virtual-

ization did. These administrators quickly realized, however, that desktops, with all their

moving parts, were more complicated to virtualize than servers, and that desktop virtu-

alization can actually increase IT spending. At the same time, enterprises faced coping

with a new generation of end users that have become accustomed to personalized work-

spaces, downloading and using their own applications, and accessing their workspaces

from whatever device they choose.

Desktop virtualization gives IT departments a way to centrally manage increasingly

complex and distributed end-user environments, and show their bosses that they can

cut organizational costs and even bring competitive value, not just budget drain. Enter-

prises will continue to deliver session-based applications and also work on virtual

desktop infrastructure (VDI) projects in-house, and internal IT shops are beginning to

resemble service providers themselves. Even though these enterprises have an increasing

number of options to subscribe to desktops hosted by third-party service providers,

it’s the SMBs that are actually taking the plunge. In many cases, though, what they’re

subscribing to are hosted applications rather than entire desktops. Then there’s the

promise of an increasing number of Web applications that can be rendered directly in

HTML5-enabled browsers added into the mix. It’s the Wild West in end-user computing.

By VDI, we mean server-hosted desktop virtualization, sometimes (confusingly) called

hosted virtual desktops, or HVD. By ‘hosted desktops’ or (more usually) desktops as

a service (DaaS), on the other hand, we mean desktops offered by third-party service

providers. Of course, there’s the additional wrinkle that IT organizations are evolving

into internal service providers, further eroding the distinction. But, for the time being,

let’s think of VDI as virtual desktops hosted on-premises, while DaaS and VDI as a

service (VaaS) involve virtual desktops hosted elsewhere.

Organizations will continue to manage hybrid environments of physical and virtual

applications and desktops, and scores of desktop systems management vendors are

betting on that. A typical case is an enterprise busy developing its own cloud, then

finding it has to manage hybrid environments, as employees are already adopting shiny

new endpoint devices and Web applications such as Dropbox. And, despite the popu-

larity of these useful Web applications, the race is on to provide support for Windows

applications across non-Windows devices and operating systems.

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Desktop virtualization giants are onto it. Citrix and Microsoft maintain their awkward

closeness, and tell a similar story – that Microsoft Remote Desktop Services (RDS)

coupled with Citrix XenApp is the most viable delivery method for DaaS. They’re telling

this story as a temporary measure, because Microsoft’s licensing makes VDI and VaaS

really expensive. Microsoft recognizes the huge opportunity for DaaS, and isn’t writing

VaaS off. After all, one of its gold partners, dinCloud, provides just that. When, and if,

the desktop giant decides how to structure SPLAs that make this model viable for any

service provider, the market for VaaS could really take off. Citrix is ready and waiting.

VMware remains relevant in desktop virtualization, mostly with on-premises VDI, still

by very much leveraging its dominance in server virtualization. However, the company

isn’t resting on those laurels as Hyper-V gains market share. VMware’s DaaS strategy

is highly partner-centric, and in 2011, the virtualization behemoth forged a partner-

ship with Symantec. The two companies are working on a reference architecture that is

expected to be available in 2012. Another partnership with Desktone should make View

– which was not designed with multi-tenant environments in mind – more accessible to

service-provider partners.

While VMware gathers DaaS partners, the company doesn’t have a competitive session-

based offering that can stand up to the current Microsoft-Citrix standard. Instead, and

as the virtual desktop window of opportunity closes, VMware is preparing for the next

generation of application delivery. The company’s Horizon App Manager platform rivals

Citrix’ Receiver application portal. In addition, Project AppBlast demonstrates its seri-

ousness about HTML5-based Web application delivery. Look for more.

Overall, interest in DaaS and development of the DaaS marketplace are exploding. We

can thank the introduction of the iPad for getting the race into full gear: tablets with

access to hosted applications and desktops can solve a variety of end-user problems.

It’s still early on, and SMBs are the first to adopt. In this report, we profile a handful

of service providers that are already delivering DaaS. We also provide a few use cases,

both third-party DaaS deployments and an internal DaaS-like deployment.

1.2 KEY FINDINGS

• It’s no longer about just the desktop; it’s about users and their applications and

data. Where and from which devices users access their data and applications will

determine which delivery model makes the most sense.

• Mobility and the complexity of managing distributed desktop environments moves

the conversation away from VDI in many use cases. Workers can easily log into

shared or Web applications from a tablet or smartphone while on the road. The

infrastructure is less expensive and complicated to support and manage in these

environments.

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• Although we are already moving into a ‘post-PC world,’ it’s not going to be a ‘post-

Windows world’ anytime soon. Vendors are betting heavily on this, and are mostly

working to get Windows applications on non-Windows devices.

• Microsoft licensing favors session-based desktops in DaaS deployments. The real

take-up in VaaS depends on whether Microsoft develops SPLAs to validate the switch

to fully hosted desktops.

• SMBs are early adopters of DaaS. Enterprises are just dipping their toes in the water,

and sticking largely to on-premises desktop infrastructure.

• Desktop virtualization is really just another way to manage end-user environments.

Organizations are harnessing these technologies to provide services to workers that

are demanding a better work/life balance, and to use whichever device they want.

• HTML5 is already in use. As it develops further, it will be a major factor in how

users access their data, and how desktop administrators work. For now, there are

significant limitations due to WAN latency.

• For the foreseeable future, most organizations will still need to manage physical

environments as well as virtual, or cloud, environments. Dozens of desktop systems

management vendors are happy to do this.

• Even though many say that the world isn’t ready for DaaS, we are seeing increasing

interest and adoption. For many cash-strapped startups, putting their desktops in the

cloud is a no-brainer. Enterprises tend to have more resources to provide internal

services.

• Service providers need to negotiate Microsoft SPLAs that make VaaS an affordable

option in order for enterprises to consider looking at third-party hosted desktops.

• Organizations that have been burned by VDI projects in the past are good candidates

for DaaS.

• Vendors and service providers need to educate potential customers in this nascent

space. That means they must come to agreement on what DaaS really is. For now, all

eyes are on Microsoft.

1.3 METHODOLOGY

This report on DaaS is based on countless anecdotal conversations with IT managers

across multiple industries, as well as our regular research on software vendors. This

research was supplemented by additional primary research, including an end-user

survey that was conducted by our sister organization TheInfoPro, and attendance at a

number of trade shows and industry events.

Reports such as this one represent a holistic perspective on key emerging markets in the

enterprise IT space. These markets evolve quickly, though, so 451 Research offers addi-

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tional services that provide critical marketplace updates. These updated reports and

perspectives are presented on a daily basis via the company’s core intelligence service

– the 451 Market Insight Service. Forward-looking M&A analysis and perspectives on

strategic acquisitions and the liquidity environment for technology companies are also

updated regularly via the Market Insight Service, which is backed by the industry-

leading 451 M&A KnowledgeBase.

Emerging technologies and markets are also covered in additional 451 practices,

including our CloudScape, Enterprise Security, Eco-Efficient IT, Information Manage-

ment, Commercial Adoption of Open Source (CAOS), Infrastructure Computing for the

Enterprise (ICE), Datacenter Technologies (DCT) and 451 Market Monitor services. All of

these 451 services, which are accessible via the Web, provide critical and timely analysis

specifically focused on the business of enterprise IT innovation.

This report was written by Karin Kelley, Analyst, Infrastructure Computing for the

Enterprise, with assistance from John Abbott, Chief Analyst; Rachel Chalmers, Research

Director; Steve Coplan, Senior Analyst; Peter ffoulkes, Research Director; and Swapna

Subramani, Analyst.

Any questions about the methodology should be addressed to Karin Kelley at:

[email protected]

For more information about 451 Research, please go to the company’s website:

www.451research.com

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THE 451 GROUP: INFRASTRUCTURE COMPUTING FOR THE ENTERPRISE 5 © 2012 451 RESEARCH, LLC AND/OR ITS AFFILIATES. ALL RIGHTS RESERVED.

SECTION 2 The Story so Far

As we stated before, we define DaaS as any combination of session-based computing,

a desktop connection broker, user and application virtualization, a protocol or client

hypervisor, and network, security and storage optimization – plus a hosting partner. In

the industry, however, DaaS is defined in many different, and often conflicting, ways.

Beyond desktop virtualization, the DaaS acronym has been defined as ‘data as a service’

and even ‘development as a service.’ With that in mind, let’s take a look at the evolution

of what, for now, we will call DaaS, with regard to desktops.

2.1 SESSION-BASED COMPUTING

Session-based computing in Windows and DOS environments was invented by Citrix,

when the company introduced WinView in 1993. At the time, the multiuser product was

intended to compete with Unix and Xenix, Microsoft’s x86-based desktop version of

Unix. Later, when Microsoft released Windows NT 4, it licensed Citrix code, and began

work on its own similar product. The result was Windows Terminal Server Edition for

Windows NT Server 4.0, which was released in 1998. In the deal, Citrix agreed to not

ship a competing product, but negotiated the rights to sell an extension to Windows

Terminal Server called MetaFrame.

These early iterations were developed to deliver hosted applications to endpoints; but

let’s fast forward to 2012. What Microsoft had called Terminal Services is now named

Remote Desktop Services (RDS), and the suite includes its application virtualization and

streaming product App-V.

For its part, Citrix called its flagship MetaFrame Server and Provisioning Server before

settling on the name XenApp. The product also includes application virtualization and

streaming. Competitive platforms in remote session-based computing include: Quest

Software’s vWorkSpace, 2X Software’s ApplicationServer, Ericom Software’s PowerTerm

WebConnect, Oracle’s Secure Global Desktop and Red Hat Enterprise Linux Desktop.

Service providers are also using these products to provide session-based DaaS.

2.2 VDI

Virtual desktop infrastructure moves the Windows workspace to the machine room or

datacenter. This workspace is served to end users over the LAN or WAN. There’s defi-

nitely a resemblance to its session-based predecessor, but in this model, the end users

get a whole OS to themselves, albeit on a shared CPU.

The advantage of having the whole OS is that users can customize their environments,

adding their own applications, for example. The disadvantage of VDI is that servers

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can’t support as many simultaneous users as they can in terminal services models.

Consolidation ratios are far lower in VDI. But on the upside, any workload consolida-

tion at all is better than the 1:1 ratio yielded by a traditional desktop PC.

TheInfoPro conducted a survey on desktop virtualization, and discovered that most

respondents intend to investigate on-premises VDI, if not to deploy it. However, we also

discovered that most VDI deployments still haven’t made it past the POC or pilot stage.

Why does VDI fail? Complexity and cost are big issues, but they don’t explain it all.

While there are sophisticated tools to manage VDI environments, particularly around

storage and I/O, user and performance monitoring and management, the real concern

is user acceptance, which stymies most VDI rollouts. Latency over the WAN, and slow

log-on times during the morning ‘boot storm’ contribute to users’ frustration with VDI.

For all of these reasons, VDI burn victims are excellent candidates for managed DaaS.

Companies like Desktone, dinCloud and tuCloud are actually delivering VaaS today.

That said, VaaS is not the primary model for the emerging DaaS market – although

there’s the widespread misconception that it is. The problem is that performance issues

with pure, on-premises VDI flow logically to VaaS deployments.

2.3 APPLICATION STORES

Inspired by Apple’s App Store for the iPhone, enterprise IT departments daydream about

offering a similar storefront to their internal ‘customers.’ Such a storefront is coming

to be known as an ‘app marketplace,’ and it exists in at least three main flavors: self-

service catalog, online showcase and full-fledged app marketplace. Vendors coming

into this space include PaaS and SaaS players, MSPs, traditional enterprise ISVs, dedi-

cated startups and desktop virtualization providers. There are also mobile and consumer

app marketplaces, while other adjacent markets include security providers and data and

application integration players.

We can trace the genesis of application marketplaces to CRM and ERP vendors’ deci-

sion to open up their development platforms and tools to partners and customers. Some

were SaaS pure plays; others had hybrid on-premises/hosted strategies. As they opened

up their platforms, they became PaaS pioneers. When partners developed to their PaaS,

these providers built the first online showcases to demonstrate the vitality and richness

of this partner ecosystem.

By and large, the app marketplaces remain software showcases rather than actual store-

fronts. This means that while potential customers can look at app specifications and

reviews, and perhaps download and try out the software, they often can’t buy directly

from the apps marketplace.

At the same time, we’re seeing a variety of other app marketplace models emerging. For

now, the kind of online showcase we’ve outlined – initiated by a particular vendor to

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demonstrate the flexibility and maturity of its PaaS – is the norm. But we’re also seeing

some app marketplaces that are functioning as a meeting point between apps developed

using a variety of third-party PaaS and apps from a single vendor using its own PaaS. We

are also seeing aggregators emerge to pull together a wide variety of different vendors’

apps built on disparate platforms.

Desktop virtualization players like VMware and Citrix are betting heavily on cloud-deliv-

ered applications. Citrix augments its application delivery smarts with a self-service

application portal called Receiver. Similarly, VMware aims to take advantage of its large

enterprise customer base with the release of its Horizon App Manager, as well as Project

AppBlast, which aims to take advantage of HTML5-based browsers. Citrix has already

released a Receiver client for Chrome OS that integrates with Facebook. These moves are

a no-brainer for the desktop virtualization and management vendors, and may leapfrog

both companies’ VDI initiatives.

2.4 MICROSOFT LICENSING

As we’ve said, Microsoft’s current licensing options favor session-based computing over

VDI. In fact, both Microsoft and longtime partner Citrix maintain that session-based

virtual desktops make more sense in most use cases, especially when those sessions are

delivered from the cloud. They argue that organizations can achieve much higher consol-

idation ratios on servers because of the shared architecture of session-based computing.

IT administrators have tighter, locked-down control over those resources when employees

take them on the road, or when malware attacks make them vulnerable. Session-based

computing does have certain advantages, but the consequence – whether intentional or

not – is to strangle VDI, hosted or on-premises. The model won’t really take off unless

and until Microsoft makes some changes to its licensing.

Traditional Windows licensing models simply weren’t designed with VDI and a post-PC

world in mind. These come in three flavors: original equipment manufacturer (OEM)

licenses, full packaged product (FPP) licenses and volume licensing (VL). OEM licenses are

bound to hardware, cannot be transferred, and are valid as long as the equipment oper-

ates. Even though these licenses can be cost-effective in a traditional desktop environ-

ment where people use one physical device for work, it can get expensive in a VDI envi-

ronment, where workers ideally access their virtual desktop from a variety of devices.

FPP licenses were designed specifically for retail machines, and require VMs on a host

server to be mapped to only one user, which negates any benefits of VDI. In this arrange-

ment, only one VM can be assigned per user, and if the VM needs to be moved to another

host, it must also be removed from the device that VM was assigned to. According to

Microsoft documentation, organizations that want to put multiple VMs on a host server

should look into Software Assurance licenses. We’ll get into that shortly. Last, but not

least, is VL, which has all the limitations of FPP, and more restrictions that limit using the

load-balancing and business-continuity benefits VDI offers.

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In addition to these, two more licenses were created especially for VDI – Windows Client

Software Assurance (SA) and Virtual Desktop Access (VDA). SA is basically VL on steroids.

These licenses include technical support, consulting and training. SA also comes with

virtual desktop licenses for fat clients. For organizations that want to use thin clients in

their VDI deployment, they must purchase an additional VDA license. VDA is also required

on employee-owned and contractor devices. VDA is available through all VL and SA

licenses for $100/device/year. What these VDI-specific licenses give customers in flexi-

bility, they take away again in cost.

2.5 HTML5

Another major driver of change in end-user computing comes out of left field, in the

form of a new Web standard. The latest version of HTML is still under development, even

though some pieces of it are already in use. Work on HTML5 began in 2004. It is still

in ‘working draft’ status, and is expected to be completed by 2014. New features will

continue to be added gradually. Development is a joint effort between the World Wide

Web Consortium (W3C) and the Web Hypertext Application Technology Working Group

(WHATWG). All of the major browsers already support it, to some degree or another.

Google’s open source Chromium project, and the resulting Chrome OS, has been custom-

built to work with Web applications written in HTML5.

Like its predecessor, the basic principle behind HTML5 is interconnection on the Web.

While earlier versions connected static images with hypertext, HTML5 allows Web devel-

opers to embed and manipulate video and audio into Web pages without third-party plug-

ins like Adobe Flash or Apple QuickTime. Another important new feature in this version

is ‘canvas,’ which, through the use of JavaScript APIs, can dynamically render graphics

pixel-by-pixel in the browser. Canvas was developed by Apple in 2004, but is now incor-

porated into HTML5. In addition, HTML5 uses the Cascading Style Sheets language for

presentation semantics. By using accepted standards and features, Web developers draw

from the same toolbox, and can communicate through the JavaScript Web-messaging

framework in a more dynamic, media-rich and interconnected Web – across multiple plat-

form and devices.

Instead of using HTTP, which requires every request for data to receive a response, HTML5

uses a protocol called WebSockets. This protocol allows for a continuous, multithreaded

stream of textual data between browsers and devices through a single TCP socket. This

makes it possible to handle complex Web applications more efficiently than HTTP, which

needs multiple connections for multiple requests. With new offline storage capabili-

ties, application data can be cached on the users’ local hard drive. Applications then have

access to that data in a local SQL database, thereby reducing calls to the server.

The remote media protocols that work with virtual desktops and applications use binary

files, so tweaks need to be made to port through the WebSockets layer, which only accepts

textual data. Several companies, including Ericom Software with its AccessNow product,

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offer software clients that translate the binary data from RDP into textual data and

other bitmap images that HTML5-enabled browsers can render natively. Citrix has

released its HTML5-compatible Receiver for Facebook that is currently only avail-

able on Chrome OS. VMware announced Project AppBlast last fall. It, too, aims to

deliver Windows applications to HTML5 browsers, but has not yet been released. Other

players in this emerging market include Cybele Software, with its ThinRDP offering, and

Remote Spark, with its Spark View offering.

2.6 DAAS ADOPTION

So far, most adoption of DaaS has been in the SMB market. To be clear, these DaaS

deployments are primarily session-based computing. Typical workloads include

accounting and payroll, data storage, email, collaboration and CRM. Enterprises are

dipping their toes into DaaS, although many of these deployments aren’t supplied by

third-party DaaS providers, but delivered by the internal IT departments.

While the king of desktops acknowledges VDI, and the potential market opportunity in

delivering it as a service, Microsoft still regards VDI as an emerging technology. It is

working on a strategy for VDI models, but in the meantime, is not openly promoting

VaaS. Instead, Microsoft (and partner Citrix) maintain that a combination of RDS and

Citrix XenApp works in most use cases. Citrix claims that 90% of its current DaaS

deployments are actually XenApp sessions, and that users don’t even realize that they

aren’t getting a full Windows 7 desktop.

That said, two of the companies profiled in this report primarily promote VaaS. After

struggling for years, Desktone, the pioneer of the service-provider-based approach,

had to change its original business model. Now it hosts the service itself, in order to

be in a position to iron out the complexities of VaaS. The company built its software

on open source technology to minimize some of the Microsoft licensing costs, and is

now partnering with service providers as well as offering the service itself. DinCloud

is able to offer VaaS at reasonable prices through a volume-licensing deal from Micro-

soft. TuCloud uses Citrix’s VDI-in-a-Box platform, which is based on its acquisition of

Kaviza, to deliver DaaS.

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SECTION 3 Service Providers

Most, if not all, service providers have DaaS in their sights. Those already providing DaaS are

still fine-tuning their offerings to make financial sense. Partner clouds are proliferating at a

dizzying speed, consisting of a batch of service providers, software and hardware vendors.

We expect to see new partnerships and offerings in our radar almost daily. We’ve profiled

only a handful of these below, simply because they are spreading like a wildfire. All of the

major systems integrators, including IBM, Wipro and CSC (just to name a few) are vying for a

piece of the market. Smaller systems integrators and consultants are already seeding the SMB

market. As it stands now, larger enterprises are working on their own internal DaaS offerings.

3.1 DESKTONE

DaaS pioneer Desktone is back in the news after partnering with VMware to offer service

providers a DaaS package. The joint roadmap includes Desktone’s multi-tenant DaaS Plat-

form, which features a grid architecture, role separation and lots of open source to keep costs

down; VMware’s View 5 with the PCoIP display protocol to keep the end-user experience

sharp; VMware vSphere 5; and vCloud. The combination of a reinvented Desktone, which is

now targeting service providers rather than enterprises, with a VMware anxious to crack the

service-provider market, makes sense from the vendors’ points of view.

Founded in 2007, Boston-based Desktone has about 50 employees and 80 direct customers.

Desktone Cloud subscriber QueBIT provides training, sales enablement, test and development,

and business continuity to its remotely based consultants and contractors with the service.

A partnership with UK-based MSP Molten Technologies should extend Desktone’s European

footprint. In North America, outsourcing and cloud services provider mindSHIFT Technologies

is using the Desktone Platform to provide its cloudSHIFT Desktop to SMBs. Longtime services

partners including, but not limited to, IBM, Infosys Limited, Verizon and Marubeni all use the

Desktone Platform. Desktone also has a couple of its own datacenters, and is hosted on Rack-

space’s infrastructure.

3.2 DINCLOUD

Spun off of En Pointe Technologies in January 2011, dinCloud provides what it calls Hosted

Virtual Desktops, as well as hosted servers. In fact, the company claims that it provides every-

thing you can do in a datacenter from the cloud, including networking, storage and security.

Most important for DaaS, though, is the company’s close ties to Microsoft. DinCloud lever-

aged its roots in En Pointe, which is a major reseller of Microsoft licenses, to obtain a

volume-licensing deal. Also drawing on its genesis within En Pointe, the company provides

its customers with what it calls a ‘licensing desk.’ Here, a team evaluates each customer’s

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desktop and infrastructure requirements and determines what licensing models work, across

all of its software partners. The service includes recommendations on whether perpetual

licensing makes sense over a subscription model.

Executives claim its customers can realize a 20-55% savings by subscribing to the DaaS

service. The company says it is one of the only firms that can offer full VaaS because of its

relationship with Microsoft. Although dinCloud offers RDS when it makes sense for the end

user, the company really wants customers to use VDI. At the endpoint, dinCloud recom-

mends low-power, small-form-factor laptops over thin clients. It claims thin clients just

aren’t powerful enough to provide an acceptable user experience.

In the datacenter, customers can opt to be hosted on shared, multi-tenant infrastructure or

pay for a ‘dedicated public cloud’ of their own. Regardless of whether the customer’s data

resides on shared infrastructure or dedicated, all of the infrastructure appliances are virtual

and dedicated. This means that each customer has its own virtual firewall, for instance.

To overcome bloated storage and I/O bottlenecks that come hand-in-hand with VDI,

dinCloud has chosen to use InfiniBand architecture, instead of iSCSI or fiber channel-based

technology – both of which, CTO Mike Chase says, have technology flaws. VMware ESX

and Hyper-V sit at the hypervisor layer. Other infrastructure partners that are part of the

‘dinStack’ coalition include, but are not limited to: NetApp, Trend Micro, Vyatta, LANdesk,

Xsigo and Quest Software. On the hosting side, Equinix, Qwest Communications, AT&T and

Alchemy Communications are partners.

In January 2012, dinCloud secured $1m in seed funding from a handful of angel investors.

The company, which has been incubated by En Pointe since its incorporation in January

2011, will use the capital primarily for sales and marketing purposes. Los Angeles-based

dinCloud has been selling fully managed cloud-based virtual desktops and virtual servers

since April 2011. The company currently employs 30, but is likely to expand to 50 by the

end of 2012. It is already planning a series A institutional round, which is expected to be

secured by March.

3.3 RACKSPACE

Rackspace supplies the IaaS for a number of desktop virtualization service providers.

Launched in May 2011, Rackspace’s Hosted Virtual Desktop (HVD) is a joint offering

with partner Citrix. Potential customers can sign up for a free 30-day trial, and down-

load a Citrix plug-in to get started. The hosted virtual desktop is actually a XenApp session

running on a Microsoft Windows 2008 Server R2. Because this is shared, session-based

computing, users can’t install their own applications or store any personal files on their

HVDs. The environment has access to 15GB of RAM, a shared quad-core processor and

150GBs of disk space that is shared by all concurrent sessions. Citrix’ CloudPortal is a self-

service provisioning and automation platform that IT administrators can use to manage

cloud environments.

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Rackspace also provides the IaaS for Desktone and joint channel partners. The hoster is

happy to let the channel use their datacenters for other desktop virtualization deployments,

too, including VMware View. When a customer contacts the HVD team, Rackspace refers

them to the proper platform, and says that it sees most interest in Citrix-based deploy-

ments. Customers can choose to have a dedicated environment. If the customer wants

to leverage a shared infrastructure for a fixed number of desktops, and has not already

decided upon a virtualization technology, Desktone is often the choice, even though Citrix

works in those scenarios, too.

Rackspace claims that the response to its HVD service was far greater than initially

expected, and came from a wide variety of verticals. The company reports it has deploy-

ments anywhere from the 10s to 1,000s of seats, and that incoming requests for trials

are growing. That said, the biggest inhibitor to adoption continues to be cost. Latency

and performance over the WAN are also causing concern. The company observes that

early adopters in this space will be the IT departments that can show TCO by repurposing

resources to more strategic projects than desktop management, at least until prices drop.

3.4 NIVIO

Cloud-hosted desktop and application provider nivio was founded in 2004 by Sachin

Duggal and Saurabh Pradeep Dhoot. The Switzerland-based company now has offices in

India, Singapore, the UK and Australia. The initial goal of the founders was to bring down

the cost and complexity of desktop computing for the cash-strapped educational market

schools in developing countries. In fact, the founders’ goal is to help educate 100 million

children in their lifetimes. Today, the company has its sights on broader markets. It is

opening a US office this year.

Nivio’s flagship offering, nDesktop, is a Windows desktop hosted on multi-tenant, cloud-

based infrastructure. With it, users can access their desktops over the Internet and from

various devices and operating systems, including Android, Mac, iOS, Linux and Windows.

Nivio does this using Microsoft Remote Desktop Services with App-V, along with some

proprietary provisioning and load-balancing software. Future versions should include

support for HTML5.

Interestingly, the founders started their project using VDI. After building a five-user pilot,

however, they ran into issues around scalability. They maintain that VDI works in ‘niche’

cases, and that it was not designed to scale in a multi-tenant cloud.

Nivio has a few other products, including nApps, which is an application store that users

can temporarily ‘rent’ hosted applications from. NDrive is an online storage service, and

nShare lets users share data, files, pictures and documents. Users can do this publicly or

privately through the service. The company also offers low-cost, low-energy PCs called

CloudBook and CloudPC.

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3.5 NGENX

Hosted virtual desktop provider nGenX was founded in 2000 as a traditional application

service provider (ASP), and purchased in 2004 by Q-Comm, a competitive local exchange

carrier. In 2010, Windstream Communications bought Q-Comm, but two subsidiaries,

including nGenX, were left out of the deal. Instead, the company’s management team

recapitalized, and was able to operate as a startup with the benefit of an existing customer

base and a substantial datacenter infrastructure. The independent company now has three

datacenters in Indiana and Kentucky.

After evaluating several other desktop and application virtualization alternatives, nGenX

settled on a combination of Microsoft and Citrix. According to president Robert Bye,

nGenX was the first beta customer in the Citrix Cloud Service Provider Program. NGenX

also started working early on with Australian startup EMS Cortex, and its cloud service-

automation platform – now owned and operated by Citrix itself. In addition, the company

was involved early on with application virtualization and streaming pioneer Softricity,

which is now Microsoft’s App-V.

NGenX’s virtual desktop offering, Office Anywhere, is based on a combination of Windows

Server 2008 R2, with Hyper-V and Remote Desktop Services (both are bundled with the

OS anyway). In addition, the service works with Citrix XenApp for desktop delivery and

streaming, Citrix’s cloud-automation platform Citrix EMS Cortex, and Microsoft App-V for

application virtualization. Citrix’s Cortex Control Panel provides a Web-based automation

and management portal that the service providers can offer their customers. Bye claims

they chose this base architecture because they had already invested in Systems Center to

manage the rest of the datacenter, and also because Hyper-V integrated better with the

automation software they use. Other tools used in the service include (but are not limited

to): Citrix User Profile Manager and EdgeSight, SolarWinds, Aria Systems subscription and

billing management, and salesforce.com. On the back end, Office Anywhere is run on a

Cisco Unified Computing Systems and HP servers, with an expandable Compellent SAN, a

NetApp SAN and Cisco Nexus switches.

The company charges customers in three ways. The first option is a true white-label model.

NGenX gives the customer a buy rate, which they are then free to mark up. Most ISV part-

ners are in this program, along with a few telcos, which bundle this with other services

for their customers. The second option is a co-branding arrangement, where the customer

chooses the price and nGenX gets a share of the revenue. Third is a residual commission

model, with the subscription service under the nGenX brand. Currently, the company is

seeing most demand for the white-label approach.

The Overland Park, Kansas-based company has about 40 employees, and is growing. On the

roadmap is an application store, although that’s a tough sell to ISVs, which worry about it

cannibalizes their own sales. Currently, users can request apps through Citrix Receiver.

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SECTION 4 Case Studies

As previously noted, SMBs are the key adopters in DaaS. However, education markets have

been at the forefront of desktop virtualization since early on, and DaaS is no exception.

We’ve also noted that not all DaaS deployments are provided through a third party; internal

IT departments can also be providing that as a service. We expect enterprises to adopt this

approach. Note that in this use case, it can be hard to distinguish VDI from on-premises DaaS.

4.1 FREED-HARDEMAN UNIVERSITY – DESKTONE

Freed-Hardeman University is a private Christian school located in Henderson, Tennessee.

Director of network operation Greg Maples and his team are responsible for providing IT

infrastructure and support for more than 2,000 enrolled students and about 300 faculty and

staff. When users, both students and faculty, started to bring pressure to support the Mac OS,

the team faced a great challenge: their entire infrastructure was Windows-centric. Worse,

many of the programs used at the university, including grade keeping, bill payment and

accounts-receivable software, did not have a client for Mac OS.

The team tried using Parallels Virtuozzo Containers. With log-in times between three and five

minutes, users were not happy. Next, they compared Microsoft Remote Desktop for Mac and

Citrix XenDesktop. While discussing the proposal with Citrix, Maples saw an announcement

about DaaS from Rackspace, and gave the company a call. Rackspace recommended that he

call Desktone.

Since July 2011, the team has rolled out 60 Desktone desktops, mostly in the IT department

and in remote locations in Memphis and Nashville. There are plans to deploy more, specif-

ically in the classroom. One potential use case is in the biology department, which uses a

statistical and graphics program called SYSTAT that requires Windows to run. Another benefit

is that students can share data between classes by leaving the desktop running like a worksta-

tion. A further use case, according to Maples, is to give student workers access to a desktop

for their work. Come the following semester, access can be taken away and given to the

student that then fills that same position.

Maples claims that login times have been reduced to 30 seconds, and that the learning curve

is short. He also reports fewer helpdesk calls as a result of the deployment. Any hiccups, he

says, were on the university’s end. In fact, it was Desktone’s customer service that discovered

the problem was outdated Active Directory Group Policy settings. Maples no longer takes his

laptop home from work; instead, he just calls up his desktop through his iPad.

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4.2 ENFORM TECHNOLOGIES – WANOVA

Enform is a safety association for the upstream oil and gas industry in the Canadian

provinces of British Columbia, Alberta and Saskatchewan. Out of 150 employees, 30%

are mobile, including auditors that perform inspections at sites that extract and produce

crude oil and natural gas. Increasingly, demanding end users were starting to complain

about downtime when laptops needed to be worked on. Users were also becoming more

tech-savvy, and wanted to harness the ever-improving power of their devices.

In 2007 and 2008, while the IT team was virtualizing servers in Enform’s datacenters

with VMware, it decided to do a VDI pilot with VMware View. Enform also tried a pilot

with Citrix XenDesktop during this time. Manager of corporate IT Philippe Mawugbe

claims that although each platform had advantages, neither met the company’s busi-

ness needs. The economic downturn that was unfolding also made it hard to justify the

high costs of these deployments. When Virtual Computer turned up with the NxTop

client hypervisor and management suite, Mawugbe thought the approach was brilliant

and launched another trial. That experiment ran into issues, including limited platform

support and troubles with driver compatibility. Users were also annoyed about having

to log in to two separate sessions.

In 2010, the team discovered Wanova’s Mirage platform, and started yet another pilot.

Mawugbe was impressed at first because the platform was so lightweight, he would

not have to build another datacenter to support it. In addition, he could do every-

thing he could with VDI, without as much load on the network. Central management

was another key factor, as were backup and recovery capabilities. Finally, the end user’s

experience was not adversely affected. Out of 150, 120 now get their desktops through

Mirage, and the team plans to roll out to more once an in-progress hardware upgrade is

completed. Going forward, Mawugbe is pushing Wanova to be a one-stop shop for its

desktop needs. New features he would like to see include increased support during hard-

ware migrations, user-rights management capabilities and support for tablets.

4.3 IMMIGRATION ATTORNEYS – DINCLOUD

Immigration Attorneys is a new business that spun off of a much larger, well-estab-

lished law firm in late 2011. Headquartered in Chicago, the firm has 33 employees and

branch offices in Phoenix, Milwaukee and Tampa, Florida. After the decision was made

to split from the larger firm, Immigration Attorneys had less than a month to accom-

plish the transition, including finding new offices, dealing with the transfer of sensitive

data and setting up a desktop infrastructure. Initially, the team thought to replicate the

traditional client-server architecture they were familiar with from the old firm. But high

costs and new desktop technologies sent the firm on a path to hosted virtual desktops.

It looked at Rackspace’s offering, but found that out of line with its budget. Instead,

Immigration Attorneys chose dinCloud. The vendor impressed CEO Ira Azulay, primarily

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by its willingness to commit to the firm’s aggressive deadline to go live in less than a

week. Immigration Attorneys shipped an external drive with all of its data on a Friday,

and was able to go live the following Wednesday. There were no serious concerns over

security, as dinCloud offers multiple layers of authentication, and Immigration Attor-

neys was already comfortable using remote technologies from Citrix. Using dinCloud

eliminated the need to use Citrix for remote workers, too. The only problems the firm

encountered were essentially getting users acquainted with the new environment.

DinCloud was very responsive to any issues. One minor issue was a delay between

keyboard stroke and the display, but that was due to a bottleneck in the firm’s own

network, and easily fixed by adding bandwidth.

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SECTION 5Survey Data, Market Sizing and M&A

5.1 SURVEY DATA

In a survey of nearly 40 IT professionals conducted by our sister organization TheIn-

foPro, we found that desktop virtualization is on the roadmap for most respondents

in 2012. VDI and session-based computing top the charts, but not one of the small set

of respondents had cloud-hosted desktops in their business plan. The market is indeed

nascent, although we remain bullish that it will continue to grow over the next few

years, and believe interest is real. Adoption will depend on how the early players can

educate potential customers. For now, let’s take a look at some of the survey results.

FIGURE 1: SURVEY QUESTION – WHAT PERCENTAGE OF DESKTOPS ARE OR WILL BE VIRTUALIZED IN 2011? IN 2012?

Full sample: 2001, n=37; 2012, n=48

> 25%

21%-25%

16%-20%

11%-15%

6%-10%

1%-5%

0%

0% 10% 20% 30% 40% 50%

2011

2012

4%

17%

0%

2%

2%

4%

0%

13%

4%

13%

42%

38%

48%

15%

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FIGURE 2: SURVEY QUESTION – WHAT IS THE STATUS OF YOUR DESKTOP VIRTU-ALIZATION PROJECT?

Full sample: n=49.

Preliminary Investigation –

No Funding and/or Staff14%

In Consideration With an Active, Funded,

and Staffed Project12%

In Pilot29%

In Use – Production Deployment

45%

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5.2 MARKET SIZING

FIGURE 3: THE DESKTOP VIRTUALIZATION ECOSYSTEM MARKET OPPORTUNITY

5.3 M&A

The incumbent virtualization platform players will continue to acquire startup vendors to

round out their cloud suites. Last year, Citrix made six acquisitions, including EMS Cortex,

which gives it an application delivery platform for the cloud; RingCube Technologies,

which brings layering of personalization smarts; and AppDNA, which manages application

migrations. Similarly, Quest Software picked up ChangeBase for application analysis and

user management. VMware also chimed in with a number of SaaS acquisitions, including

SlideRocket and Digital Fuel Technologies.

Going forward, we expect to see consolidation in the storage and I/O management space

for VDI environments. We think Dell, HP or IBM might be interesting suitors for storage

I/O optimization company Atlantis Computing. Along the same lines – and if Dell is inter-

ested in moving higher up the stack – it may look at Unidesk, which also provides some

clever layering technology. Deals are already happening in this space. Tiny California-

based DeskStream just bought even tinier Belfast-based WorldDesk, which has created a

DaaS service that uses Dropbox for online storage. The service also runs on DeskStream’s

DVD platform, which provides workspace layering and storage optimization.

2009 2010 2011 2012 2013 2014 2015

Initial Adoption:• Desktop virtualization viewed as a

market with a lot of potential• Hyper-growth stage yet to be achieved• Launch of Citrix XenDesktop 4 &

VMware View 4.0• Performance and ROI hurdles hinder

progress toward ‘desktop nirvana’• Session-based computing accounts for

over 75% market share

Focus shifting toward DaaS

The Desk

top

Virtualiz

ation E

cosystem

$5.6bn

$1.6bn

Broader Adoption:• Adoption in best use cases • Push by Citrix & VMware• Desktop + application + user virtualization =

closer to ‘nirvana product’’• First growth spike in 2010• Desktop virtualization revenues expand to com-

pete with session-based computing revenues• User-centric evolution of desktops with an aim

toward next-generation end-user computing

The desktop virtualization ecosystem revenue includes:• Server-, client-, cloud-, and OS-hosted desktop virtualization• Session-based computing• Application virtualization• Management (includes user virtualization)

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SECTION 6 Adjacent Markets

6.1 THIN CLIENTS AND MOBILE DEVICES

Thin clients were once seen as PC replacements, but only partially succeeded in that

role, remaining a tiny niche within total desktop sales. Even in the terminal services

sector driven by Citrix, thin clients never reached more than a 25% penetration rate.

Now, however, the increasing adoption of desktop virtualization assumes that access

will be available not only from PCs or thin clients, but also from mobile devices,

including smartphones and tablets. Some enterprises are adopting ‘bring your own PC’

strategies, where users are free to choose whichever device they prefer for both personal

and corporate use, with the IT department providing secure access to the enterprise

resources.

Wyse Technology’s recent purchase of mobile device management company Trellia

Networks indicates that the thin-client market is shifting its focus toward mobility. Also,

market leader HP now talks in terms of mobile thin clients. Number three in the thin-

client space (at least in terms of number of seats) is nComputing, which turns standard

PCs into thin-client servers. Others include Dell (still establishing itself), Germany’s IGEL

Technology and zero-client pioneer startup Pano Logic.

In the end, it’s all about end-user experience, and whether thin clients and mobile

devices can deliver that on par with PCs. Remote media protocols play a large part here.

In general, the various approaches to remote computing have been shifting in recent

years toward hardware-rendering and host-rendered protocols. Before this trend took

hold, thin clients had been getting fatter and were starting to require updates – in effect

turning into the PCs they were meant to replace and undermining any claimed cost or

ease-of-management benefits. That is perhaps one reason why thin clients have never

risen beyond single-figure percentages in desktop market share vs. personal computers.

The other reason is, of course, the limited user experience when compared to a PC. In

combination with VDI vendors, thin-client advocates now hope to fix that by pushing

much leaner and simpler clients, more capable hosts, tuned protocols that can deliver

full graphical interfaces, and virtual desktop software for personalization.

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6.2 IDENTITY AND ACCESS MANAGEMENT

Managing identity is key to delivering applications and desktops from the cloud. Iden-

tity in the cloud is entering a more advanced phase of evolution that builds on the

initial need to securely and consistently exploit internal identity logic to manage access

to off-premises resources and applications. Previously, we spoke about identity in the

cloud as the extension of authentication, authorization and provisioning to manage

access to resources and services outside of the corporate firewall.

The market is now contending with what the cloud requires for identity management

as a technology set relative to what the identity management industry can deliver. The

rise of a portable identity, or ‘identity container,’ is defined first by the work done to

define authentication and authorization standards by the identity management industry.

However, the desire for a ‘cloud aware’ identity that is free of the legacy concerns of

internal identity management to enable unconstrained, dynamic utilization of cloud

resources across service APIs is driving the new programmatic definition of identity.

As a result, spending on identity in the cloud is undergoing a shift from tactical invest-

ments (like federated single sign-on) to a single SaaS application. Rather than simply

serving as a means to extend the enterprise sphere of control, identity becomes a

crucial element in managing continuous services across discontinuous infrastructure –

not only between the enterprise and a third-party application, but between and across

cloud instances, whether private, public or hybrid. With identity now portable – but

still contingent on an enterprise identity – the stage is set for converting enterprise user

profiles into assured attributes articulated in standards for dynamic, automated and

granular authorization and provisioning.

Realistically speaking, the degree to which standards-based articulation of an enter-

prise identity and associated attributes will play out as a central management concern

– and the pace this happens at – is tightly linked to an organization’s strategic invest-

ment in cloud computing, application isolation and IT consumption models like desktop

virtualization. Plus, for many organizations with existing investments in identity and

access management infrastructure, managing access to external services, applica-

tions and resources alongside legacy applications is linked to the complex challenge of

governance. And the administrative processes are tied up with legacy infrastructure like

Microsoft Active Directory.

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INDEX OF COMPANIES

2X Software 5

Adobe 8

Alchemy Communications 11

AppDNA 19

Apple 6, 8

Aria Systems 13

Atlantis Computing 19

AT&T 11

ChangeBase 19

Cisco 13

Citrix 2, 5, 7, 9, 11, 12, 13, 14, 15, 16, 19, 20

Compellent 13

CSC 10

Cybele Software 9

Dell 19, 20

DeskStream 19

Desktone 2, 6, 9, 10, 12, 14

Digital Fuel Technologies 19

dinCloud 2, 6, 10, 11, 15, 16

Dropbox 1, 19

EMS Cortex 13, 19

Enform 15

En Pointe Technologies 10, 11

Equinix 11

Ericom Software 5, 8

Facebook 7, 9

Freed-Hardeman University 14

Google 8

HP 13, 19, 20

IBM 10, 19

IGEL Technology 20

Immigration Attorneys 15, 16

Infosys 10

Infosys Limited 10

Kaviza 9

LANdesk 11

Marubeni 10

Microsoft 2, 3, 5, 7, 9, 10, 11, 12, 13, 14, 21

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mindSHIFT Technologies 10

Molten Technologies 10

nComputing 20

NetApp 11, 13

nGenX 13

nivio 12

Oracle 5

Pano Logic 20

Parallels 14

Q-Comm 13

Quest Software 5, 11, 19

Qwest Communications 11

Rackspace 10, 11, 12, 14, 15

Red Hat 5

Remote Spark 9

RingCube Technologies 19

salesforce.com 13

SlideRocket 19

SolarWinds 13

Symantec 2

Trellia Networks 20

Trend Micro 11

tuCloud 6

Unidesk 19

Verizon 10

Virtual Computer 15

VMware 2, 7, 9, 10, 11, 12, 15, 19

Vyatta 11

Wanova 15

Web Hypertext Application Technology Working Group 8

Windstream Communications 13

Wipro 10

WorldDesk 19

World Wide Web Consortium 8

Wyse Technology 20

Xsigo 11