News: 1710483907

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Claims emerge that Citrix has doubled price of month-to-month partner licenses

(2024/03/15)


Citrix has allegedly made major changes to its partner program, and one of the consultancies briefed on the new arrangements told The Register that the when the news was delivered to a gathering of the Citrix faithful the result was "stunned silence followed by anger and disbelief."

One reason for that reaction is a change to licensing for partners that, we understand, will see Citrix charge double the price for its wares unless partners pay upfront for a year.

Those wares will be bundled as "Citrix Universal for CSP" that encompasses "the best Citrix and NetScaler capabilities", we are told. That bundle sounds a lot like the " [1]Citrix Platform " license announced earlier this month for end-user customers.

[2]

A Citrix partner of our acquaintance described the license as "everything included including all the bits you don't need."

[3]

[4]

Citrix appears to have justified the cost increase on grounds that a "flexible monthly model introduces a level of incremental costs and uncertainty into the business." The biz has also pitched the annual licenses as a way for partners to lock in costs and prices for their customers, rather than being buffeted by potential cost increases during a year.

The price increase will kick in from September 1, 2024.

[5]Microsoft brings its cloudy virtual desktops on-prem to AzureStack HCI

[6]AWS plays with Fire TV Cube, turns it into a thin client for cloudy desktops

[7]Wanna run Windows on an M-series Mac? Fine, buy a license, but no baremetal

[8]Citrix pulls the plug on its User Group Community

Our sources – who requested anonymity due to an ongoing Citrix relationship – told us of the new bundle, and it has also appeared in a pair of Thursday [9]Reddit [10]posts that appear to reproduce the content of a letter sent to Citrix partners.

The Register has sought to authenticate the letter, but Citrix and its parent company Cloud Software Group have not responded to many of our recent requests – nor to this one at the time of writing.

[11]

Among the other changes The Register understands are afoot are a reduction in rebates paid to channel partners, leaving them with marking up license costs – and services, natch – as a source of revenue.

The Register understands that Citrix did not inform all partners of these changes at once – some were briefed in recent days, others located in different countries haven't yet been told the news.

One Citrix partner who had not been briefed on the changes when The Register first heard of them told us that, if our information was accurate, he would likely quit Citrix and instead focus on Microsoft's Windows 365 Cloud PCs.

[12]

The document we believe to be Citrix's letter to its partners mentions "more than two million active subscribers today " – some of whom will not immediately be ready to switch to Windows 365 or any rival desktop-as-a-service platform.

But between the changes we believe Citrix is making, and VMware by Broadcom's spin-out of its end-user compute products, virtual desktop users have very good reasons to consider their alternatives. ®

Get our [13]Tech Resources



[1] https://www.theregister.com/2024/03/06/citrix_platform_hybrid_cloud_licenses/

[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/channel&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZfQqSRFYancHB1hCMqpFHwAAAIo&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[3] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/channel&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfQqSRFYancHB1hCMqpFHwAAAIo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/channel&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZfQqSRFYancHB1hCMqpFHwAAAIo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[5] https://www.theregister.com/2024/02/06/azure_virtual_desktops_azurestack_hci/

[6] https://www.theregister.com/2023/11/27/aws_workspaces_thin_client/

[7] https://www.theregister.com/2024/01/22/microsoft_so_you_want_to/

[8] https://www.theregister.com/2023/12/05/citrix_user_group_community_ends/

[9] https://www.reddit.com/r/Citrix/comments/1be5t3n/citrix_csp_program_changes/

[10] https://www.reddit.com/r/Citrix/comments/19a1p9t/citrix_csp_program_changes//

[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/channel&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZfQqSRFYancHB1hCMqpFHwAAAIo&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[12] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/channel&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZfQqSRFYancHB1hCMqpFHwAAAIo&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[13] https://whitepapers.theregister.com/



"flexible monthly model introduces [..] uncertainty into the business."

Pascal Monett

And there we have it. Citrix is not interested in serving its customers, it is interested in getting fixed revenue every month for life.

You're in business, Citrix. Uncertainty is what you live with.

Deal with it, or get a government job.

Broadcom playbook

Starfish

This is no surprise - and it's straight from the Broadcom playbook.

Since Citrix was bought out by a PE, and installed ex-Broadcom Tom Krause as it's CEO, there's barely a quarter that goes by without a new hire from Broadcom being announced on the ELT.

You want to know Citrix's strategy for 2024? Just look at what Broadcom did 6-12 months ago. It's as simple as that.

I would have promised those terrorists a trip to Disneyland if it would have
gotten the hostages released. I thank God they were satisfied with the
missiles and we didn't have to go to that extreme.
-- Oliver North