Microsoft, Citrix Seal Terminal Server Deal

The five-year agreement, which was expected in the industry given the companies' past work on the Citrix MetaFrame access software suite on top of Windows Terminal Server, also ensures that Citrix solutions will play an access role in Microsoft's next-generation Longhorn server.

"What it says is Cirtix and Microsoft customers are going to continue to have access to best-of-breed technology and they're guaranteed a high degree of interoperability," Yankee Group senior analyst Laura DiDio told TechNewsWorld. "You're not requiring customers to make a choice [between Citrix and Microsoft solutions]."

Bigger, Better Platform

The five-year agreement, which builds on collaboration that started in 1997, will cover improvements to the Citrix MetaFrame Access Suite that runs on Microsoft Windows Terminal Server.

Bob Muglia, Microsoft vice president of the Windows Server Division, said in a statement that the Citrix deal would result in an improved and more extensible Windows Server platform for ISVs, adding that it broadened Windows server solutions and bolstered Longhorn's appeal in the market.

The companies also said that for existing customers, the agreement will provide enhanced collaboration to achieve continuity for migration to MetaFrame Presentation Server on Microsoft's forthcoming Longhorn server.

Patented Innovation

Mark Templeton, Citrix president and chief executive officer, said the improved integration with the Windows server operating system would allow simpler, easier to manage solutions and smooth migration. Despite some industry concerns that software patents may act as inhibitors to innovation, Templeton called agreements such as the Citrix-Microsoft deal a model for progress.

"From an industry standpoint, Citrix believes this kind of patent and technology licensing agreement is a driver of innovation in the software ecosystem that, in the end, delivers great value to customers," Templeton said in a statement.

Core Concentration

Yankee Group's DiDio said the deal puts to rest questions about what might happen to Citrix solutions if Microsoft was to "pull the rug out" and work to create its own access software.

DiDio also said the extended agreement with Citrix indicates that Microsoft is trying to capitalize on other companies' talent and technologies so it can focus on the core of its next-generation Longhorn.

"They should concentrate on the core components of Longhorn," she said. "It frees Microsoft to concentrate on what they do best."

Continuing Terminal Service

Meta Group research Vice President Steve Kleynhans said that the deal, while not particularly significant for Microsoft, was key for Citrix.

"It's good news for Citrix and its customers because it means MetaFrame is staying relevant and viable in the Longhorn era," Kleynhans said.

The analyst -- who downplayed the code-sharing, cross-licensing agreement between the two companies -- said it was also an indication that Microsoft will continue supporting its Terminal Server.

"From Microsoft's point of view, it shows they will continue support terminal service and will improve it incrementally," Kleynhans said. "And Citrix will be among customers providing input for it."