Citrix Systems, Inc. (NASDAQ:CTXS) is a very strong player in the application delivery controller (ADC) market, and earlier it stole a major market share from Cisco Systems, Inc. (NASDAQ:CSCO). Further, it got dominance over this market when Cisco decided not to further develop ADC in late 2012. Cisco partnered with Citrix Systems, Inc. (NASDAQ:CTXS) for its ADC solution. Consequently, Citrix Systems, Inc. (NASDAQ:CTXS) ADC has seen sales growth of 24% in 2012, and there should be further upside to it in the year 2013 with little or no current competition.
Besides this, Citrix is also a leader in the virtual desktop infrastructure (VDI) market with its XenDesktop (XD) product (mobile and desktop segment). This product’s licensing has seen a growth of 9% year-over-year in the fourth quarter of 2012, and is estimated to become a larger revenue contributor with 15% increase year-over-year in the second quarter of 2013. With several advantages like a centralized datacenter, security, and centralized system management over traditional desktops and laptops, the overall VDI market is expected to grow to over 74 million users by 2014. This increase in the market size and demand will most likely bring good returns to investors as well.
Informatica Corporation (NASDAQ:INFA)
Informatica Corporation (NASDAQ:INFA) has been facing operational issues since the third quarter of 2012, and has recently implemented some sales management changes to address the same. With these changes in sales execution, the company expects positive trends in the first quarter of 2013. The company has seen some lags in its license revenue business earlier, but with new modifications, it expects a growth of 10%-15% over the coming years in its license revenue.
Informatica Corporation (NASDAQ:INFA) is a leading provider of enterprise data integration software and works in a highly competitive market. To maintain its position in the market, the company has recently launched “PowerCenter Big Data Edition,” which is five times more productive and equally efficient than Hadoop, a Java-based programming framework and Big Data leader. With constant innovation over Big Data service, it attracted some early purchasers like Facebook Inc (NASDAQ:FB) and Opentable, which makes Informatics more positive and competitive in the future.
Conclusion
All three stocks look promising to me, as they have drafted their strategies with the futuristic demand of a sound and safe infrastructure development.
VMware, with its own hybrid cloud offering, vCloud Hybrid Service, and Citrix, with its Virtual Desktop Infrastructure (VDI), have already made a big dent in the market to capture a higher share. Though Informatica Corporation (NASDAQ:INFA) has been facing some operational issues for a long time, it is now taking itself toward the growth path with efficient Big Data service, PowerCenter Big Data Edition.
I have a positive outlook for all three companies and expect good returns from them at the current share prices. I would recommend them as a “buy.”
The article Buy These Stocks if You Want to Bank on Big Data and the Cloud originally appeared on Fool.com and is written by Shweta Dubey.
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