[THIN] RDP vs. ICA - New Gartner Group Study.

  • From: John Twilley <John.Twilley@xxxxxxxxxxxxxxxxxxxxx>
  • To: "'thin@xxxxxxxxxxxxx'" <thin@xxxxxxxxxxxxx>
  • Date: Wed, 17 Jul 2002 07:29:19 -0400

I ran across the following link to the newest Gartner Group Thin Client
Study:
        
Citrix Systems and Thin-Client Platforms for Windows 
P. Lowber  (06 June 2002)
 
Citrix MetaFrame has dominated Windows Terminal Server deployments, but high
license costs are causing some users to reevaluate Citrix and consider
alternatives. 


http://www.gartner.com/reprints/newmoon/107326.html

Note:  It costs $95 to see it on Gartners main website.  This link is free.
       I have included the content below.
_________________________________________________________________________

Core Topic 

Computing Platforms ~ Hardware and Systems 

Key Issue 

What are the key technologies in each computing hardware platform market,
and how will they affect the market? 

Strategic Planning Assumptions 

Through 2002, more than 75 percent of WTS deployments with more than 200
active users will use Citrix MetaFrame (0.8 probability). 

Through 2006, more than 70 percent of enterprises with more than 1,000
active users and 100 applications will use WTS with Citrix MetaFrame, but
only 50 percent with fewer than 1,000 active users and less than 50
applications will use Citrix MetaFrame with WTS (0.7 probability). 

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In 1Q02, we saw an increasing interest in alternatives to Citrix Systems
among enterprises that are pursuing thin-client, Windows Terminal Server
(WTS) deployment strategies. These organizations like WTS and Citrix, but
are finding it difficult to justify the additional license price of Citrix
MetaFrame in addition to Microsoft's WTSs, especially given the improvements
in Microsoft's Remote Desktop Protocol (RDP) and when compared with
lower-priced options from other companies, such as New Moon Systems, or
Novell's thin-client solution.

Analysis

Citrix has dominated the WTS market with MetaFrame. We estimate that more
than 70 percent of WTSs ship with MetaFrame, most of which are for
deployments of more than 200 active users. We expect Citrix to continue to
dominate large and complex deployments. However, we also expect the
percentage of WTS shipping without MetaFrame to increase as enterprises with
smaller, less-complex deployments choose WTS with RDP. MetaFrame, which uses
Citrix's Independent Computing Architecture (ICA) a thin-client protocol,
for accessing WTS, offers substantial added value for its server farm
management features and for ICA's robust features. MetaFrame will continue
to dominate large deployments, but it is not needed in every case. The
marketing prowess of Citrix resellers has helped create a perception that
MetaFrame is required where sometimes it might not be.

Where and Why Citrix Is Needed

Many enterprises are expanding their thin-client Windows deployments, which
will likely increase their reliance on Citrix. MetaFrame's value increases
as the complexity of deployments increase (number of concurrent users and
number of applications). MetaFrame XP's ability to centrally manage
dispersed or distributed server farm deployments enables enterprises to
consolidate their deployments worldwide, thus lowering the cost of server
farm management. Citrix load-balancing, resource and installation management
tools enable administrators to dynamically install, group and manage
applications across servers and server farms. MetaFrame XP Feature Release 2
(FR2) extends the multifarm load-balancing capability to NFuse Classic 1.7. 

MetaFrame also secures access over the Internet. ICA 6 supports Secure
Sockets Layer (SSL), and the Citrix Secure Gateway (CSG), included with
MetaFrame XP, provides end-to-end SSL encryption from the desktop to the
particular application, and also provides digital certificates on the
terminal server (which prevents an intruder from rerouting a user's session
from the server). MetaFrame XP FR2 extends CSG's capability with support for
secure proxy servers. Microsoft's RDP does not support SSL (but does offer
RC4 encryption) and does not offer the end-to-end security features of CSG.
However, Aspelle Everywhere provides secure access through the Internet (via
SSL support for RDP).

The Citrix ICA thin-client protocol also supports full 16-bit color, local
serial port devices, audio output and smart card login (with FR2) - features
RDP 5.1 will support when .NET Server ships by year-end 2002. (RDP 5.1 will
require .NET Server and Terminal Services.) ICA can support computer-based
training because it can shadow multiple sessions to multiple users, whereas
RDP only supports sessions shadowing to a single user (appropriate for
remote support, but not for computer-based training to multiple users
simultaneously). ICA also supports Windows and non-Windows (Unix and
Macintosh) desktops. Microsoft licenses RDP to third parties for non-Windows
platforms. Currently, there are no shipping licensed third-party RDP
clients, but we expect this to change before year-end 2002. 

Citrix License Costs

As we have noted in previous research, with the improvements it has made to
RDP's performance, Microsoft's WTS (without MetaFrame) is good enough for
most deployments over low-bandwidth networks with fewer than 200 active
users, assuming there are only a few applications and no requirement for a
particular feature supported by ICA but not by RDP. More recently, some
enterprises with larger deployment plans have begun actively pursuing
alternatives to Citrix because of the perceived high license costs of
MetaFrame XP and the license cost of migrating from MetaFrame 1.8 to
MetaFrame XP. The migration is relatively trivial, but the license costs for
MetaFrame XP are causing some Citrix customers to hesitate (see "Citrix
MetaFrame XP: More Scalable, but More Expensive," FT-13-0933).

Unless forced to by competitive pressure, Citrix is not likely to adopt
aggressive pricing. The company reported a 7 percent revenue growth for
1Q02, and projected flat revenue growth for the remainder of 2002. Citrix is
under pressure to grow its revenue this year, as its license agreement with
Microsoft expired in May 2002. In return for the Citrix MultiWin (multiuser
Windows) source code that Microsoft implemented (with Citrix's support) for
Windows NT 4.0 Terminal Server Edition and integrated with Windows 2000
Server Terminal Services (and also for .NET Server), Microsoft paid Citrix
$175 million in royalties. Citrix has been recognizing this revenue in its
balance sheet every quarter since 1998 through 2Q02 (averaging about $35
million a year from 1998 through 2001).

In May 2002, Microsoft agreed to give Citrix access to source code for the
next three years of releases of its Windows server operating systems. There
are no financial terms. The new deal guarantees only that Citrix will have
access to the source code. This is an important symbolic gesture by
Microsoft, demonstrating its continued recognition of the value Citrix
offers to WTS. Citrix will be able to respond in a timely manner with
enhancements to MetaFrame for new releases of Microsoft's operating systems.

What Are Some Other Options? 

For thin-client deployments focused on Windows, the main alternatives to
using Citrix MetaFrame are using Microsoft WTS with RDP alone, using WTS
with RDP and Canaveral iQ software from New Moon Systems, or using Novell
OnDemand Services with Microsoft's RDP or Citrix ICA. For thin-client
deployments in heterogeneous environments (requiring access to Unix
x-Windows, mainframe 3270, AS/400 5250 and Windows applications), we
recommend that enterprises consider Tarantella's platform. Table 1 shows the
comparative license fees (nondiscounted, list price) for WTS add-ons or
alternative products. We show list price here because it is the only way to
make an objective comparison. However, every real situation involves a
discount, and discounts will vary from vendor to vendor and from situation
to situation. Enterprises can expect at least 30 percent discounts from list
price; for more than 2,000 licenses, the discounts should be above 50
percent. Competitive situations will bring higher discounts. 

Table 1

Comparative License Fees *

Vendor Product License Fee, List Price Nondiscounted (including annual
maintenance ), US$ 
Citrix MetaFrame XPe for Windows (with Load Balancing, Resource and
Installation Management) $400 per active user 
Citrix MetaFrame XPa for Windows (with Load Balancing) $345 per active user 
Citrix MetaFrame XPs for Windows $290 per active user 
New Moon Systems Canaveral iQ $205 per active user 
Novell ODS $99 per active user 
*Note: All prices are in addition to Microsoft's Terminal Server Client
Access Licenses, which are licensed on a per-device user  



Source: Gartner Research

Citrix will continue to dominate WTS deployments with more than 200 active
users and more than 10 to 15 applications, but smaller, simpler deployments
will increasingly use alternatives. 

The key added value for Citrix continues to be its proven ability to:

Provide efficient, easy access to applications in complex deployments 
Manage complex deployments with application-based load-balancing and
application installation tools 
Consolidate distributed or dispersed WTS deployments 
Integrated secure remote access (with no additional cost) 
New Moon Systems

New Moon is a small, private company with a product called Canaveral iQ that
offers added value to WTS with RDP. Canaveral became generally available in
late 2001. The company has only a few references with production deployments
and building a distributor/value-added reseller channel. New Moon is
primarily targeting deployments of up to 500 active users, but it has won a
few customers with plans for deployments of up to 2,000 to 3,000 active
users. Citrix MetaFrame has more features than Canaveral iQ, such as
application installation and management (across the server farms) and better
security (with Secure Sockets Layer for ICA), but Canaveral iQ is a simple,
cost-effective alternative to MetaFrame XPa for many small-to-midsize
deployments. 

Using WTS with RDP alone may be appropriate for small deployments (fewer
than 200 active users), but tools for managing the server farms (which are
not offered by Microsoft) can lower total cost of ownership for large
deployments. New Moon Systems provides provisioning and load-balancing tools
for WTS with RDP. Canaveral iQ, like Citrix MetaFrame with NFuse, can
publish WTS (with RDP) applications to a Web page, and users can access
these applications through a browser. 

New Moon enhances RDP with local file saving, seamless Windows and universal
print driver (UPD) support for local printing. Citrix has the same features
with ICA. UPD greatly simplifies the printer management issue with WTS by
eliminating the need for administrators to install and maintain print
drivers for each printer. Like Citrix MetaFrame XP, Canaveral iQ is
integrated with Active Directory, setting up user and group accounts. 

Because it adds features to RDP, New Moon requires client installation of
its Canaveral iQ (RDP-based) thin client, available now for any Windows 9.x,
2000 or XP desktop, and by mid-July 2002 for any Wyse Winterm Windows
CE-based model. Future releases of RDP and Canaveral iQ will have
enhancements that will broaden their appeal. 

Using New Moon is not without risk. A small start-up with only a few
customer deployments so far (but with a growing pipeline), there is no
guarantee that New Moon will survive. However, the company has momentum, and
it will continue to attract customers frustrated by Citrix license costs.

Novell OnDemand Services (ODS)

Novell ODS is a Web-based provisioning tool for WTS or Citrix MetaFrame
(which can be used with ICA and RDP server-based applications). Novell
acquired ODS technology with its acquisition of Novetrix in February 2001.
Integrated with Novell's eDirectory, ODS manages and publishes the
server-based applications from the directory, and also offers usage tracking
for billing purposes. In addition, ODS supports load balancing and enables
the publishing of WTS-based applications to a Web page with browser access
to these applications. Authentication is provided through Novell's iChain,
but the security for RDP is based on Microsoft's RC4 security for RDP. 

With ZENworks 4.0, the NetWare client is no longer required for ZENworks for
Desktops or for ODS. ZENworks 4.0 integrates the management of fat and thin
Windows applications. Novell's ZENworks Synergy is the integration of
ZENworks 4.0 (scheduled for availability by the end of June) with Novell's
Portal Services. Enterprises can deploy server-based or desktop applications
with a common user interface and a unified management infrastructure. This
is a powerful capability that is not offered by any other vendor. Weak
marketing has contributed to ODS' lack of visibility. ODS only has a few
references. However, we recommend that enterprises with Novell's eDirectory
installed consider using ODS with WTS or Citrix MetaFrame.

Other Scenarios

Application deployment systems from vendors like Softricity (which has
integrated its platform to run with Citrix MetaFrame) and AppStream can
simplify management and deployment of client-side applications. We will
discuss these technologies in future research.

Related Research/Recommended Reading

"Citrix MetaFrame XP: More Scalable, but More Expensive," (FT-13-0933)

"Windows Terminal Services Is Improving; So Is MetaFrame," (T-13-6250)

"Citrix at a Crossroads," (C-12-6960)


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Acronym Key

CSG  Citrix Secure Gateway  
FR2  MetaFrame XP Release 2  
ICA  Independent Computing Architecture  
ODS  Novell's OnDemand Services  
RDP  Remote Desktop Protocol  
SSL  Secure Sockets Layer  
UPD  Universal print driver  
WTS  Windows Terminal Server  


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Bottom Line: Citrix MetaFrame is a strong product with a full feature set -
in some cases, more than an enterprise might need. We believe there is an
opportunity for WTS deployments with fewer than 500 active users and less
than 20 applications to consider less-expensive alternatives. Competitive
evaluations will provide more options, and competitive pressure will result
in better discounts from Citrix, should a Citrix solution be chosen.
Enterprises have the option of starting a WTS deployment without Citrix and
adding Citrix MetaFrame as their deployment becomes bigger and more complex.


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This document has been published by:  
 
Service Date Document # 
Internet Strategies 6 June 2002 M-16-1549 



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