APPLICATION SERVER MARKET BACKGROUNDER

Corporate America, in downsizing its mission-critical applications from
centralized mainframes to distributed PC-LANs, faces the challenge of unifying
its heterogeneous installed systems into a cohesive internetworked solution.
Today's rightsizing trend leverages information resources throughout an
organization to enhance information availability, regardless of where it may
reside, or where it may be accessed, across the enterprise.  However, several
problems are associated with distributed LAN-based sys tems.

First, remote sites and mobile PC users are cut off from critical network
applications and data.  Second, the LAN topology promotes the wide
distribution of applications and data, making information systems difficult to
manage and reducing overall securit y.  Third, the large installed base of
low-end personal computers makes it difficult to rapidly deploy sophisticated
Windows applications.  Application Servers provide the security, scalability,
and management tools necessary to support mission-critical applications in
Corporate America's expanding enterprise network environment.  File servers
emerged to provide centralized file and directory resources for network users,
and print servers evolved to provide shared printing resources.  Likewise,
Application Servers will become a vital network element, offering shared
processing power for Windows, DOS and OS/2 applications.  Application Servers
will become the way to efficiently distribute application power to a diverse
workstation and mobile user population.  As a result, the network Application
Server is expected to be one of the fastest growing segments of the enterprise
network computing market over the next five years.  Currently, Novell and
Citrix combined account for 90 percent of the installed base of A pplication
Servers.  By assuming responsibility for Novell's NetWare Access Services
(NAS) software, Citrix becomes the leading worldwide Application Server
provider.

Application Servers Defined
Complementing the existing local area network (LAN) infrastructure,
Application Servers distribute program execution and operation among multiple
computers in a network environment.  In their simplest form, Application
Servers address both the communication and application needs of remote/mobile
LAN users.  In their more advanced configurations, Application Servers
facilitate the development, deployment and management of modern appli ations,
and provide the flexibility and functionality to meet a whole host of other PC
LAN problems.  For instance, it is a cost-effective remote computing solution,
providing multiple users with high-performance remote access to Windows, DOS,
and OS/2 ap plications.  Another common use of Application Server software is
for linking remote sites to the corporate WAN.  This dramatically improves
response time and lessens user frustration over wide-area network bottlenecks.
Application Servers offer the advant age of client/server technology, without
the need to rewrite existing applications or the need to upgrade the installed
client base.  Still another use for Application Server technology is in
protecting the current hardware investment in PCs and terminals , while giving
them the full power of modern Windows applications.

Industry Trends for an Emerging Application Server Market
Corporate America Downsizes
Mainframes performed almost half of all corporate processing activities in
1991, while PC-LANs managed a marginal one-fifth.  One year later, mainframe
corporate processing declined to 36 percent, while PC-LANs increased its share
to almost one-third (Sen try Market Research Software Market Survey).  By the
end of this year, Sentry Market Research predicts PCs will gain the lead in
corporate processing functions.  According to a recent Gallup poll, the
average Fortune 1,000 company has moved 10 applications from mainframe
computers to networked workstations in the past 12 months.

The Appeal of Client/Server Computing
Sentry Market Research attributes strong software industry growth to the
appeal of client/server computing.  "Leading the way in potential growth
opportunities are client/server-oriented database and systems management
tools," claims the Software Executive ).  Approximately 9.3 million personal
computers are connected to networks that run client/server applications today,
and this number is projected to reach 31 million by 1996.  While the promises
of client/server computing are compelling, the realities of implementation are
burdensome.  A 1993 Sentry Market Research study revealed that 70 percent of
survey respondents cited new client equipment costs (486 system or higher) as
an obstacle in implementing a client/server solution.  Almost 60 percent said
application conversion costs (applications must be rewritten) was a major
obstacle, while almost 40 percent said security concerns impeded
implementation.  Application Servers are based on a form of client/server
computing, called Distributed Presentation Management (DPM).  Under a system
employing DPM, application execution occurs on the Application Server, while
only the user interface is displayed on inte lligent client workstations.
Downsized mission-critical applications as well as off-the-shelf,
industry-standard PC applications can benefit from this execution distribution
without any modification.  Since application usage and execution are
distributed between a client and server, Application Servers provide many of
the benefits of client/server programming.  The advantage is that the
distribution is accomplished using traditional applications without a single
line of code or binary image change.  And th e need to upgrade the existing
workstation hardware base is eliminated.

Networking the Enterprise
Peripheral Strategies, Inc.  describes today's enterprise networking trend,
"Clients are attached to LANs, forming the workgroup.  LANs are interconnected
into networks.  Today, the definition of a network is still a 'site.' As WANs,
MANs and communications technologies grow, the definition changes.  Networks
will bridge multiple sites and the enterprise becomes synonymous with the
network." Over one-third U.S.  companies migrated from departmental computing
to workgroup or enterprise-wide computing in 1990.  By the end of 1992, almost
two-thirds of U.S.  companies began interconnecting their local area networks
(Telecommunications, July 20, 1992).  By adding a WinView Application Server
to a wide-area network, the amount of data traveling across the WAN can be
significantly reduced.  Applications execute locally on the central corporate
network, while only keystrokes, Windows graphics commands and m ouse updates
travel between the client and server.  As a result, WAN bottlenecks are
eliminated.  Some Citrix customers have experienced overall WAN performance
improvements of over 300 percent.

Curtailing Software Support Costs
Most LANs have been constructed in an ad-hoc manner, desk-by-desk and
department-by-department.  The uncontrolled acquisition of heterogeneous PCs
and LANs often proves difficult to manage when interlinked into an enterprise
network system.  At the same ti me, the cost of installing and supporting
software throughout an organization has become expensive.  In fact, software
distribution and installation alone constitute an estimated 17 percent of
total software costs over a five-year period, according to a recent Gartner
Group study.  Because of the overhead incurred in software distribution,
client softwa e is often frozen at obsolescent release levels, adding
additional support burdens.  WinView for Networks minimizes the support burden
of software installation and distribution since a single application server
can support up to ten Windows or 20 DOS users, thereby minimizing the number
of execution points.

Corporate America on the Go
By 1995, 4 million remote users will be connected to corporate LANs according
to a recent study by Forrester Research.  These mobile and remote computer
users will perhaps be one of the greatest contributors to the growth in demand
for Application Servers.  expected to grow by 225 percent in 1994 to 75,000
mobile users (Yankee Group, March 22, 1993).  A recent Gallup poll states that
40 percent of Fortune 1,000 PC users carry notebook computers while traveling
on business.  These workers need to access a depa rtmental or enterprise
network, creating a dial-in server market that will increase by 75 percent in
1993 and 110 percent in 1994, according to Gartner Group.  Forrester Research
calls this the LAN Outer Network or LON market, where the LAN is extended to
remote and mobile users.  LON market revenues for products linking mobile
users and branch offices to corporate networks are predicted to increase from
$529 million in 1993 to $2.8 billion by 1997 according to Forrester Research.
According to the U.S.  Department of Transportation, two million full-time
workers already practice telecommuting at least part of the week, and this
number could reach 7.5 million to 15 million people by the end of the decade
(Software Industry Report, M ay 24, 1993).  An estimated one-third of the
American work force currently works from home, and BIS Strategic Decisions
says the home office market is expected to reach 42.5 million households by
1995.  WinView for Networks provides remote and mobile users with performance
comparable to what they would experience if they were running Windows, DOS and
OS/2 applications locally.  High speed is achieved over low bandwidth
connections since only keystrokes, Windows graphics commands and mouse updates
travel between the server and client.

Hardware Installed Base
Demand for Application Servers will also be fueled by corporations that want
to deploy Windows applications but want to gain maximum use of their existing
hardware base.  According to Bernstein Research, there are 39 million 80286
and 37 million 80386-bas ed personal computer systems in operation today.
This number will shift to 23 million 80286 and 72 million 80386 systems by
1995.  Last year, Windows application sales outpaced DOS sales, growing by 95
percent to $1.93 billion, while DOS application sales declined a full 13
percent to $2.5 billion (Software Industry Report, April 5, 1993).  Today,
most new software applications require an 80386 processor at a minimum.  Next
year, the minimum requirements will shift to a 80486 system with the arrival
of Win dows NT.  Yet, 286-based personal computers still comprise 30 percent
of the PC installed base today (Computer Intelligence), and 386SX systems will
still constitute one-third of the installed base by 1996, making them
incapable of accessing sophisticated

Windows applications.
WinView's unique distributed Windows architecture (under license from
Microsoft) allows remote PCs, even 286 machines not capable of running
Windows, to access today's sophisticated Windows applications.  The processing
power required to run WinView's sma ll client (640KB on a 286 system) is much
less than that needed to actually run Windows 3.1.

Security is a Top Concern
Several events, trends and technological in-roads have combined over the past
few years to increase Corporate America's vulnerability to hackers, viruses
and other security breaches.  A recent survey of computer security
professionals conducted by COMSEC, the on-line computer security bulletin
board, reveals that two-thirds of the respondents had experienced a security
breach within the past year alone; 10 percent further said that these security
violations had cost their companies over $100,000.  Securit y breaches cost
U.S.  businesses approximately $4 billion a year.  As a result, an astounding
37 million hours or 4,000 years of worker productivity are lost (Information
Week, August 3, 1992).  Rightfully so, security is cited to be the number one
concern of many network administrators (Business Research Group, 1993).  As a
result, the security marketplace is poised for explosive growth, estimated to
reach $4 billion by 1995 (Datapro).  WinView offers a fully secure, reliable
and manageable remote computing solution to meet the expectations and
requirements of even the toughest network administrator or system integrator.
It's advanced multi-level security system, including dial-back, pr otects the
network while maintaining tight integration with existing NetWare security.
With WinView's advanced disconnect recovery feature, disconnected sessions are
maintained and password protected, allowing remote users to reconnect from any
workstation, and with the proper password, pick up right where they left off.

Conclusion
The new Application Server market will help drive the growth of networked
applications, LAN equipment and remote connectivity products.  As the physical
boundaries of the networked enterprise are pushed outward, IS managers need to
manage distributed appl ications and provide security for sensitive corporate
data.  In addition, organizations will continue to adopt new computing
technologies in an environment that mixes next-generation portable computing
devices with an installed base of less powerful compu ters.

As more users discover the benefits of Application Server technology, demand
will rise exponentially.  Citrix Systems, the leader in Application Server
technology and installed base of Application Server software, is well
positioned to take advantage of t his growth.  Citrix Systems fulfills the
disparate needs of Corporate America with a comprehensive solution that offers
the security, scalability, and management tools necessary to support
mission-critical applications in the expanding enterprise network environment.

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Citrix and WinView are registered trademarks of Citrix Systems, Inc.  All
other trademarks and registered trademarks are property of their respective
owners.

For more information, contact:
Vicky Gore Harris
Marketing Communications Manager
Citrix Systems
(305)755-0559

Dave Kitchen
Copithorne & Bellows
(617)252-0606



