The networking business is also a category we're excited about because of independent go-to-market initiatives. We've been very successful enabling at-scale cloud operators. And we have a similar phenomenon in large enterprises driven by e-commerce. Five years ago you could say e-commerce was the domain of people who were selling consumer goods. Now it's the domain of every large company that needs to serve the online engagement needs of their customers, whether it's selling or just customer engagement. All of these scenarios need secure and reliable network connections.
* File Sharing. The fourth area of focus for Citrix is secure file sharing. What it unique is that it is file sharing for professionals at small and large businesses, contrasting with other solutions. This is not a consumer oriented business trying to serve enterprise requirements, and we're not trying to serve the needs of both consumers and businesses. It's exclusively focused on business. And even though businesses share files with consumers, it is the business owner who essentially controls the access, and we're providing a secure solution that was developed for business.
We also have some unique differentiators, with features that are important for file sharing. For example, we have support for signature technology. Not only can you share a file, you can share a file with an associated action, like a signature. It also has built-in workflow, which is not common for other data sharing competitors
We are very focused on these four pillars, but most importantly, the pillars work together which is important for our customers. This is clearly the case where the whole is bigger and better than the sum of the parts and the four units work in conjunction with each other for the secure delivery of apps and data.
You mentioned cloud, do you see that as the future?
Everything we do has both on-prem and cloud options. While we absolutely see rapid adoption of the cloud, about half of our customers continue to maintain, and will for many years to come, their on-prem deployments, and we want to give them that option. We will lead with the cloud. We will encourage them to go to the cloud, but on-premise is certainly something we will continue to offer.
Do you have a sense about the timing, when cloud will really take over?
The previous business I ran included ERP and CRM software and there were very clear renewal cycles. For ERP it's 15-year renewal cycles. The previous renewal was in 2000 and the next renewal is happening right now. That's ERP. What we're analyzing here is, what is the renewal cycle for application and desktop virtualization infrastructure? Is it three-years, five-years, ten-years? Organizations going through that renewal cycle now want to go to the cloud, or at least want to experiment with the cloud to see how it works. But it's absolutely real. People have seen benefits and real cost-savings.
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