Citrix is announcing to partners a sweeping price change to its Cirix Service Provider program. Monthly subscriptions are being made financially uninteresting as the company seeks to focus on long-term partners.
A post is circulating on Reddit about upcoming price changes for the Citrix Service Provider (CSP) program. Based on the title “Citrix CSP program changes” and the signature of Sridhar Mullapudi, general manager at Citrix, among others, it appears to be an official message sent to partners.
Paying twice as much
Citrix is shifting its focus to long-term subscriptions. Long-term partners are better for a company’s annual results and for shareholders by better-guaranteeing revenue. Mullapudi articulates the disadvantages of a monthly subscription: “Unfortunately, this flexible monthly model introduces a level of incremental cost and uncertainty into the business.”
The monthly subscription makes Citrix less attractive by implementing a hefty price increase. The cost will be doubled starting Sept. 1, 2024. The change is confirmed to The Register by a consulting firm working with the company.
New long-term offer
A one-year Universal subscription will continue to be added to the subscription packages. This formula should make Citrix even more attractive. The enhancements just don’t seem to be set in concrete terms at this time. “We also aim to make improvements to your Citrix services platform for a better partner experience and to introduce additional automation capabilities to support your customers’ onboarding, management and operations.”
The new prices are part of a series of changes to Citrix’s CSP strategy. The company says it has been meeting with several partners over the past year to review what is still missing from the strategy. From now on, the new CSP offerings will always consist of: “enhanced security, delivery of high-performance applications and flexibility in hybrid cloud deployment.”
Citrix’s change in direction shows that the virtual desktop market is looking for new forms to drive profits. VMware, since its acquisition by Broadcom, is the best example of this. Other vendors may be able to take advantage of the chaos to make sweeping changes, as competitor offerings are not quickly becoming more attractive.
Also read: VMware kills off perpetual licenses, only subscriptions remain
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